Property downturn may be over
3/5/2023
Australian property prices rose 0.6% in March, according to CoreLogic – the first monthly increase since April 2022. This is in line with other recent research, such as a recent analysis of auction clearance rates by JPMorgan suggesting that house prices could stop falling by mid-year.
But while prices increased at a national level, and in Sydney, Melbourne, Perth and Brisbane as well, they did decline in the four smaller capitals.
CoreLogic’s research director, Tim Lawless, said one reason prices are rising again is due to the tight rental market, where accommodation is scarce and rents are rising rapidly.
That’s motivating some tenants to switch from renting to buying, thereby increasing buyer demand.
“Similarly, with net overseas migration at record levels and rising, there is a chance more permanent or long-term migrants who can afford to, will skip the rental phase and fast track a home purchase simply because they can’t find rental accommodation,” he said.
