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Australian home values summarised in 2023 with a surge of 8.1%
CoreLogic’s National Home Value Index (HVI) experienced a remarkable increase of 8.1% in 2023, a significant turnaround from the 4.9% decline observed in 2022. However, this growth is still below the remarkable 24.5% surge recorded in 2021. Additionally, the index saw a relatively modest monthly rise in home values with December’s 0.4% increase marking the end of the year. Australian home values summarised in 2023 with a surge of 8.1%.
Diverse Housing Market Trends Throughout the Year
Despite an overall increase of 8.1% over the year, the housing market experienced diverse changes. While Perth saw a significant surge of 15.2%, regional Victoria saw a decline of -1.6%.
Australian Dwelling Values: A Look at the Numbers
Since May of last year, dwelling values in Perth, Adelaide, and Brisbane have experienced a consistent rise of over 1% each month. However, in Melbourne and Sydney, the rate of growth has slowed considerably since the hike in June. In fact, home values in Melbourne declined throughout November and December, while Sydney’s home values stabilized with a growth rate of just 0.2% in the final two months of the year. The smaller capital cities, on the other hand, have remained relatively subdued throughout the year. Hobart (-0.8%) and Darwin (-0.1%) recorded an annual decline in values in 2023, while the ACT saw only a modest increase of 0.5%.
“Such diversity across the capital cities can be broadly attributed to factors relating to demand and supply,” Mr Lawless said. “In Perth, Adelaide and Brisbane, housing affordability challenges haven’t been as pressing relative to the larger cities, and advertised supply levels have remained persistently and substantially below average. The cities where home value growth has been lower or negative through the year are showing higher than average levels of advertised supply alongside annual home sales which ended the year below the five year average.”
Australian Capital Cities Outperform Rural Regions in Growth
As a general trend, capital cities have displayed more robust growth than regional areas. In 2023, dwelling values in the combined capital cities index rose by 9.3%, which is more than double the 4.4% increase recorded in the combined regional index.
Housing Values in Australia: A Mixed Bag in 2023
In 2023, housing values in most regions have increased, although five of the eight capitals have yet to surpass record highs. As of year-end, Sydney values remain -2.1% below their January 2022 peak, Melbourne values are -4.1% below their March 2022 peak, and ACT values are still -6.3% below record highs. Hobart values have dipped by -11.2%, while Darwin home values are -2.8% below their cyclical high in August of last year and -7.2% below the record high set in May 2014.
Source: CoreLogic
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