- Australia’s home prices, including those on its luxury housing market, are anticipated to rise nationally from 2% to 5% by December 2023.
- The price growth is being driven by a limited volume of homes available for sale and the growing demand for luxury residential properties.
- Perth, Sydney and Adelaide are projected to experience the most extensive growth, while Hobart and Darwin are predicted to fall behind.
REA Group has estimated that Australia’s real estate prices will increase by 2% to 5% by the end of 2023 due to the low volume of available housing, alongside a growing demand for high-end residential properties from international visitors.
Based on REA Group and PropTrack’s ‘Property Market Outlook’ for August 2023, Perth, Sydney and Adelaide will be the cities experiencing the main growth.
By the same token, the report predicts that while the larger state capital cities will be the predominant drivers of growth, Australia’s most southern capital, Hobart, is likely to see a drop of 3% to 6%, and Darwin is predicted to see a decline ranging from 3% to 0%.
Between March 2020 and March 2022, Australian real estate prices rose by a record 34.9% before falling 1.9% between April and December 2022 and then rebounding. According to the report, the price increase has been linked to the higher number of transactions and the persistent stock shortfall.
Despite the increasing interest rates affecting borrowing capacities, steady growth in market prices is expected to continue in the near future due to the low housing supply. Australia is renowned for being a nation that welcomes highly skilled and wealthy immigrants.
International high net-worth individuals (HNWIs) looking to purchase a home in Australia’s luxury property market will need a secure way to make international payments between countries.
The Director of Economic Research at PropTrack, Cameron Kusher, suggested that the luxury housing market in 2024 will be less stable than this year due to the potential reset of many fixed-rate mortgages.
Kusher also noted that after six months of growth, Australia’s luxury property prices could increase by as much as 5% before the end of 2023 and even more in major cities. With low-interest rates encouraging international property buyers, there is the potential for growth in value over the next year.
In the report, it is predicted that the combined capital cities will experience an increase in price of between 3% and 6%, with Perth anticipated to show the greatest growth at a rate of 4% to 7%.
HNWIs will need to use a safe money transfer method when purchasing a primary or secondary residence in Australia.
Wealthy individuals looking to purchase luxury homes overseas can use our money transfer comparison tool to find the best available exchange rates.
