A new report has revealed WA’s capital as the strongest performer in the property market across Australia in 2023.
According to the Hotspotting Price Predictor Index (PPI) for Summer 2023, Perth finished the year as the best capital city price growth performer. However, the survey also found the market is starting to slow down.
“Three months ago, some 79% of suburbs had momentum in Perth, but now only 54% do, following a jump in plateau markets, which are those that are no longer rising and starting to taper off,” said Terry Ryder (pictured), director at Hotspotting. “Perth has lost its position as a national growth leader according to our research – although it will take time before it shows up in the price data.”
In the past quarter, the nation’s biggest capital cities emerged as the top performers, with Melbourne being first. Victoria’s capital city recorded 87% of suburbs showing positive trends, particularly in the Greater Melbourne Area. Brisbane and Sydney followed with 85% and 84% of suburbs, respectively, recording positive rankings.
“The dramatic turnaround in this market has continued,” said Tim Graham, general manager at Hotspotting. “Six months ago, we reported a glimmer of recovery, three months ago we recorded an emphatic revival and now Melbourne is the nation’s strongest market with 87% of suburbs having positive trends.”
Ryder said the performance of the residential real estate market has defied the predictions of economists in 2023 with many forecasting house price drops due to rising interest rates.
“Sales activity and prices have become stronger as the year has evolved,” he said. “Our analysis shows that markets throughout the nation are overwhelmingly upbeat: 71% of suburbs have positive sales activity trends, led by the 31% of locations which we classify as rising markets and the 26% which are recovering markets.”
He said the predictions said about 15% of suburbs would see price drops, but the market saw price drops of only 4%.
Graham said the rise of the biggest cities signals positive momentum building in the property market, noting there is more powerful momentum in the cities than in the regions.
“Melbourne, Brisbane, and Sydney all have 84% to 87% of their suburbs with positive momentum in their markets, which is a dramatic turnaround since the start of calendar year in 2023,” he said. “Seven of our top national municipalities are capital city precincts – and 72 of the National Top 100 Supercharged Suburbs are located in capital cities.
“Sydney is stronger than Regional NSW at present, Melbourne is out-performing Regional Victoria and Brisbane is slightly ahead of Regional Queensland.”
Have thoughts about this story? Let us know in the comments below.
