Heating Australian Markets -Where are we going? - Nfinity Financials

Heating Australian Markets -Where are we going?

By: Nfinity Financials0 comments

Australian homeowners are embracing resilience and shaping a positive future. Currently, most homeowners in Australia are in survival mode. With the steep rises in inflation and interest rates, Australian household consumption has hit a large spending crunch, affecting most markets negatively. So, as we approach the end of 2023, the Australian mortgage market is experiencing various trends and challenges. Perth, in particular, is witnessing a surge in house prices and rents due to its appeal and affordability compared to other capital cities. At the same time, there is a severe shortage of land, which is driving up prices across the country. However, as the spring selling season approaches, the housing market is showing signs of heating up with an unexpected increase in new property listings.

So, despite these significant risks to property markets, property markets continue to heat up. In fact, not only has Australia already witnessed a post-COVID turnaround in property prices with a consecutive six-month growth in the first half of 2023, but reports have found no signs of slowing down either. Instead, current predictions suggest another 2-5% increase in property prices by the end of 2023. Even land prices saw a substantial surge in the first quarter of 2023 rising by 23%, despite the drop in land transactions over the year.

The main factor that is holding up the rise in prices against the spending decline is likely the lack of supply of available properties, both for buyers and renters. While low housing inventory has been an issue since the housing crash in 2008, in recent times even the residential vacancy rate has seen to drop to historical lows, with Perth leading the pack with only a 0.5% vacancy rate, and other cities such as Sydney and Melbourne also fluctuating at levels under 2% to give an average nation 1.3% vacancy rate. Similarly, following the unprecedented volume of transactions due to the Homebuilder scheme, there has been a 37% fall in the volume of land transactions, fueling the elevated prices. 

Another factor fueling this rise could be the record number of immigrants to Australia happening currently. The most pronounced effect is seen in Perth, which recorded the fastest population growth amongst states at 2.3%. A median house price of $598,000 along with the record low rental vacancies allows market forecasts to label Perth as one of the biggest performers by the end of the year, with a predicted 4% to 7% growth in house prices by 2024. Let’s look further into how the major Australian property markets are shaping up. 

Perth’s Appeal and Rising Prices:

Perth is attracting many Australian buyers and renters who are priced out of more expensive capital cities. The city offers affordability, a strong economy, and a desirable lifestyle. Its population growth has outpaced the national average, and the demand for properties is high. Perth’s median dwelling price is significantly lower than cities like Sydney, making it easier for people to enter the property market. Market forecasts predict a 4% to 7% growth in Perth’s median prices by the end of 2023. 

As this western gem continues to captivate hearts, its housing landscape beckons with potential, making Perth a dynamic destination for both those seeking their dream homes and those looking for sound investment opportunities. The interplay of affordability, economic robustness, and lifestyle allure paints a promising picture for the future of Perth’s property market. Investors and seekers of their perfect dwelling alike can find solace in a city that embraces growth while holding the promise of accessible home ownership.

Shortage and Surge in Land Prices:

Across Australia, there is a severe shortage of land, leading to substantial increases in land prices. Despite a drop in land transactions, prices have continued to rise due to limited supply. The time taken to move land through the seven stages of release is causing a delay in housing supply. The government’s ability to plan and release land will greatly impact the availability of affordable housing in the coming years.

As the property landscape grapples with this scarcity, the clamor for land echoes louder than ever. The surge in land prices is a tangible reminder of the delicate equilibrium between supply and demand. This nuanced dance shapes not just mortgage figures but also the aspirations of those in search of a place to call home. The rhythm of land releases can orchestrate a symphony of change in the property market, influencing the trajectory of housing affordability for generations to come.

Spring Selling Season and Increased Listings:

As the spring selling season approaches, the Australian housing market is showing signs of warming up. In July, there was an unusual rise in new property listings, contrary to seasonal trends. Cities like Sydney and Melbourne experienced significant increases in new listings. However, while new listings are rising, the overall supply remains tight. The total advertised supply has reduced despite the increase in new listings, indicating a strong demand for properties.

The Australian mortgage market encapsulates dreams, aspirations, and financial landmarks. With Nfinity Financials, you’re not just navigating numbers – you’re embracing a voyage that promises growth, empowerment, and prosperity. Your chapter in the mortgage realm starts here, and together, we’ll script a compelling tale of achievement.

Implications and Opportunities:

These trends and challenges in the Australian property market present both opportunities and challenges for buyers, sellers, and mortgage agencies like Nfinity Financials. Rising prices in Perth offer growth potential for property investors, while the shortage of land calls for proactive government planning and collaboration. The increase in new listings ahead of the spring selling season provides an opportunity for buyers and sellers to enter the market.

Nfinity Financials: Guiding You Through the Market

Amidst these trends and challenges, Nfinity Financials emerges as a guiding light, offering expert assistance and solutions for individuals navigating the intricate landscape of the Australian property market. With a deep understanding of market dynamics, Nfinity Financials equips buyers and sellers with the tools needed to make informed decisions. Whether you’re seeking a mortgage solution to seize investment opportunities or considering selling your property, Nfinity Financials’ experienced professionals are poised to provide tailored guidance that aligns with your goals.

As the Australian mortgage market dances to an ever-evolving rhythm, Perth’s charm and the struggle with land scarcity shape its trajectory. Within the cadence of surging prices and swelling listings lies a tapestry of opportunities, punctuated by the imperative of strategic navigation. Nfinity Financials stands as an unwavering partner, extending its expert hand to guide individuals through the kaleidoscopic contours of this enigmatic journey. As you embark on your mortgage voyage, remember that comprehending these trends, confronting challenges, and seizing opportunities serve as the compass to deftly navigate Australia’s mortgage market.

Eager to embark on your journey in the Australian mortgage market? For more detailed insights into the market, Book your consultation now or reach out to them at 1300 GET LOAN. Uncover expert guidance, and illuminating insights, and pave the way for well-informed decisions shaping your mortgage aspirations. Your voyage starts with a seasoned guide at your side.


  1. https://www.yourmortgage.com.au/mortgage-news/house-listings-july-2023
  2. https://www.yourmortgage.com.au/mortgage-news/hia-corelogic-land-report-march-2023
  3. https://www.yourmortgage.com.au/mortgage-news/perth-appeal-driving-prices-and-rents

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