Investors are often curious about the outlook for the Australian property market for 2023 and beyond. Australia has a strong global economy and has remained resilient with 28 years of uninterrupted growth, resulting in relatively stable returns. Since the Russian invasion of Ukraine in early 2022, the Australian dollar has been performing well and hence, has been viewed as a safe haven currency by investors.
Recently, the Australian property market has been in a downturn due to rising interest rates, which will reduce borrowing capacity, and ongoing inflation, which reduces consumer confidence in the housing market.
However, this does not apply to all properties in Australia, as each city is at its own stage, with some falling, some rising, and some remaining stagnant. This report will expand on the outlook for the following cities: Sydney, Melbourne, Perth, Brisbane, and Adelaide.
Despite the rising interest rates, unemployment remains at a very low 3.5% in September 2022, the population growth is rising and Australian households have a relatively high saving for consumption.
Additionally, foreign investors are limited to new dwellings, which will attract new investment in housing development and increase Australia’s housing stock, creating more opportunities in construction and boosting the country’s economy. There is currently no credible reason to expect a property market crash in 2023 or beyond.