Ray White Now - Australian property insights in real time (Current Edition)

OCTOBER 2023

Cover image: 68 Iluka Road, Palm Beach, NSW 2108 Noel Nicholson and Tara Jaijee Ray White Prestige (Palm Beach)

PRICE MOVEMENTS House and unit price growth continued in September after reaching a new peak in July. Year-on-year, we’re now recording the strongest growth since mid last year. Australian house prices increased by 6.1 per cent while units increased by 4.3 per cent over the past 12 months.

The city recording the strongest growth for houses over the year is Perth, with prices up 8.6 per cent. Brisbane and Adelaide are recording the strongest increases for units, increasing by 6.8 per cent and 6.9 per cent respectively.

While growth continues, the rate of monthly change slowed marginally in September compared to the previous month. While Perth houses continue to show the largest increases year-on-year, they saw a slight drop in September of 0.5 per cent. Adelaide units, also a very strong year-on-year performer, saw a decline during the month of 0.4 per cent.

HOUSE PRICES (%CHANGE) | SINCE LAST MONTH

AUSTRALIA $818,986 0.2%

Darwin $596,781 -0.1% Brisbane $839,968 0.2% Perth $660,790 -0.7%

Adelaide $723,536 0.1%

Canberra $1,082,140 0.5%

Sydney $1,482,785 0.5%

Melbourne $1,035,403 0.5% $ MEDIAN PRICE % CHANGING IN PRICE

Hobart $774,512 0.7%

REGIONAL HOUSE PRICES (%CHANGE) | SINCE LAST MONTH

AUSTRALIA $818,986 0.2%

Rest of NT $509,937 2.1% Rest of QLD $681,671 0.9% Rest of WA $447,536 0.7%

$ MEDIAN PRICE % CHANGING IN PRICE

Rest of SA $398,224 0.9%

Rest of NSW $763,795 1.2%

Rest of VIC $594,527 0.1% Rest of TAS $519,925 0.1%

LISTING ACTIVITY Nearly all major cities saw listings decline in September, with the exception of Canberra. On a year-on-year basis, however, the trend is far more positive. Australian listings are up 3.1 per cent. Sydney is leading the charge with total listings up almost 26 per cent. More negatively, Brisbane and Darwin are still well below 2022 trends.

At this point, it does look like the supply/demand imbalance between people wanting to buy and the number of properties for sale will ensure that price growth continues. Ray White listing authorities (the point at which a vendor signs to a Ray White agent but the property is not yet advertised) pulled back in Sydney and Melbourne in September relative to August. If this trend continues, and starts to be observed in other states, it’s likely that this will be a contributor to continued price growth, alongside ongoing strong population growth and low housing supply.

AUCTION INSIGHTS In September we conducted more than 1,800 auctions, the highest September number ever recorded. Despite an uplift in the number of properties going to auction, we also saw an increase in the total number of people actively bidding, increasing from 4,700 people to 5,100 people. Adelaide remains our most contested market with an average of 3.5 active bidders (compared to 2.8 nationally). Brisbane bidding activity also remains particularly high at 3.3 active bidders Clearance rates also remain high, despite an increase in stock levels. In September, it reached 74.5 per cent across all Ray White auctions. This is only slightly lower than August when it reached 75.6 per cent.

MARKET TURNOVER Strong market conditions resulted in close to $7 billion of sales for the Ray White Group in September. This was 14 per cent higher than last September. While New South Wales remains the largest component of the total, the biggest uplift was seen in Western Australia and South Australia.

Nerida Conisbee Chief Economist Ray White Group

A B O U T R AY W H I T E Ray White is a fourth generation family owned and led business. It was established in 1902 in the small Queensland country town of Crows Nest, and has grown into Australasia’s most successful real estate business, with more than 930 franchised offices across Australia, New Zealand, Indonesia and Hong Kong.

Ray White today spans residential, commercial and rural property as well as marine and other specialist businesses.

Now more than ever, the depth of experience and the breadth of Australasia’s largest real estate group brings unrivalled value to our customers. A group that has thrived through many periods of volatility, and one that will provide the strongest level of support to enable its customers make the best real estate decisions.

Ray White’s first auction house, ‘The Shed’ Crows Nest, Queensland.

R AY W H I T E E C O N O M I C S T E A M

Nerida Conisbee Chief Economist

Jordan Tormey Data Analyst

Vanessa Rader Head of Research

William Clark Data Analyst

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© Ray White Real Estate Partnership Australia 2023 Version 61 – October 2023