The Australian property market has been vastly bullish for a good number of years now, especially throughout the past year. We saw a 22 per cent increase in property prices which has been the biggest jump since the 1980s.
This also means the nation’s median property price has risen for 15 straight months – likely an effect of record low interest rates.
Although we have seen such a high increase in property prices, the market seems to be cooling off in Sydney and Melbourne with a 0.3% increase and a -0.1% decrease respectively throughout December. Comparatively, homeowners and property investors in other cities such as Brisbane and Adelaide saw a 2.9% and 2.6% increase respectively.
Long-term lockdowns and extended work-from-home regulations in Victoria and New South Wales have greatly contributed to migration out of these cities. In particular, Brisbane and Adelaide have been growing as popular choices for residents to live and invest.
Despite median house prices in both cities being at an all-time high, it pales in comparison to Sydney’s median house price. Brisbane houses are still around $400,000 cheaper than Sydney while Adelaide is around $500,000 cheaper than Sydney.
Brisbane and Adelaide seem to be the best places to buy at the moment for Sydney and Melbourne residents looking to get away from lifestyle restrictions due to COVID-19.
Perth could also be on the radar soon as an attractive city to live and invest in with WA borders expected to reopen on February 5. Perth property prices are currently drastically undervalued by around 63% according to the Australian Property Journal, making the Western city a sound choice for investors.
As the year unfolds, it’ll be interesting to see what happens with interest rates and changing COVID situations around Australia. Aside from the unexpected, one thing is certain for now: there’s plenty of opportunity in the Australian property market.