The real estate market for 2022 has been characterised by higher interest rates, declining median prices in key capital cities, and strong increases in rents.
While many property observers were skeptical of RBA's call that interest rates would not lift until 2024, the fact that rates would rise to the level they did in 2022 took many by surprise. The result has been a significant increase in mortgage repayments for those on variable loans, causing a decline in house prices in our key markets.
Please find below a summary of median price movements across all of Australia's cities as at end of 2022, compared to end of 2021.
Sydney - median price decline (-10.6%)
Melbourne - median price decline (-7.0%)
Canberra - median price decline (-1.3%)
Brisbane - median price increase (+3.3%)
Adelaide - median price increase (+13.4%)
Perth - median price increase (+3.9%)
Darwin - median price increase (+5.5%)
Hobart - median price decline (-4.1%)
Please also find below a summary of rental yield changes across all of Australia's cities as at end of 2022, compared to end of 2021.
Sydney - rental increases (+28.4%)
Melbourne - rental increases (+23.4%)
Canberra - rental increases (+6.1%)
Brisbane - rental increases (+24.5%)
Adelaide - rental increases (+20.0%)
Perth - rental increases (+19.0%)
Darwin - rental increases (+6.7%)
Hobart - rental increases (+9.2%)
We suggest you purchase SQM Research's Boom and Bust report for 2022, which includes various forecasted scenarios for median price and rental yield movements for 2023, including for cities and regional areas - SQM Research - Property - Boom And Bust Report
For 2023, ensure you keep a close eye on interest rates, keep track of your cashflow and loan repayments, and be selective and deliberate in your property investing strategy, by taking different scenarios into account.
Also be mindful of when your loans move from fixed to variable, as there will likely be a significant increase in your loan repayments from the date your fixed loan period ends.
