Sell with Confidence
Read More
News

Prices Accelerated In November

By Ray White Whitsunday

Nerida Conisbee,
Ray White Group
Chief Economist

Prices accelerated in November despite a rate rise as population growth hits its highest level on record.

Latest population numbers show that Australia saw an additional 563,000 people in 12 months. This many people require around 225,000 additional homes. With us now consistently building fewer than 180,000 homes per year, construction is nowhere near keeping up. Interest rates may have increased at the fastest rate recorded but it is no match for the need for housing and this is fundamentally what is driving up house prices. 

In November, price growth accelerated. Perth still leads the way, pushed along by rising wealth off the back of iron ore and green energy mineral mining. However, Adelaide is also moving quicker than the rest of Australia. Mining is also playing a role here with copper playing a major role in economic growth for the state. This mining strength in both states is also driving up prices in regional Western Australia and regional South Australia – these are the strongest performers in regional Australia at the moment. 

The capital city median has now hit $1 million and this price growth will continue. There are some areas of weakness. In beachside holiday destinations, the number of homes for sale has jumped considerably. Anecdotally, many investors are starting to feel the squeeze and choosing to sell and pay down debt. This is great news for first home buyers but will make it challenging for renters hoping to secure affordable housing, with a likely drop in rental stock being the end result. 

Units also saw considerable growth over the month. While challenging for affordability, it will allow more new developments to become viable. The large jump in construction costs has made many projects unviable unless prices lift considerably. 

How much more can prices move? If we use Sydney as a benchmark relative to incomes, it is likely that the market will support much higher prices in other capital cities. Although not great news, it reflects the challenging situation with housing supply right now.

Up to Date

Latest News

  • What suburbs are seeing the most luxury home growth?

    Nerida Conisbee Ray White Group Chief Economist When it comes to Australia’s most expensive locations, the old money suburbs aren’t budging. Bellevue Hill, Point Piper and Rose Bay continue to top the list of most expensive suburbs for luxury homes in Australia. The top 10 per cent of these markets … Read more

    Read Full Post

  • Rising uncertainty impacting 2025 rate cuts

    Inflation is now within the Reserve Bank of Australia’s target range, coming in at 2.8 per cent for the September quarter and 2.1 per cent for October. Despite this, the RBA remained on hold today. The hold is disappointing but reflects the relative strength of our economy, particularly compared to … Read more

    Read Full Post