Glimmer of hope for national property values
Australia’s housing market could rise by up to a whopping 9% in the coming year.
Sydney will lead the recovery and NSW will experience the largest gain of 12% in its property sphere – as long as the Reverse Bank of Australia doesn’t hike interest rates past 4% and then start to reduce them in the second half of 2023.
New research from Christopher’s Housing Boom and Bust report for 2023 came up with four different scenarios to forecast what could happen in the new year.
If interest rates don’t surpass 4%, then real estate across the country could on average enjoy a 3-7% lift.
If the rates do start to go down, Australia’s property market could be 9% higher than it is right now.
However, properties could decline in value by a huge 6%, which is a worst-case scenario, were interest rates and inflation both to continue to rise.
The report said that if interest rates do eventually stagnate, then the property market will undergo a rapid recovery.
This would be because “of the rise in overseas arrivals, the return to the office, the existing shortage of rental accommodation, the new stamp duty/land tax changes and the expected ongoing strength of the Sydney economy”.
Australians have so far been hit with six consecutive months of interest rate rises after more than two years of the rate being at a historic 0.1%.
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