Higher interest rates may put some people off buying a property amid fears that they can’t handle the pressure of a mortgage.
But whether you are looking for a home to make your own, or an investment property, there are still some bargains to be found across Australia.
Driven by low interest rates and economic stimulus, Hayden Groves, president of the Australian Real Estate Institute, said markets like Sydney saw rapid price gains of around 30 per cent in 2021, peaking earlier this year.
“Other East Coast markets have performed similarly well and are now beginning to moderate with the impact of affordability constraints,” he said.
“In contrast, the Perth and Darwin markets, since early 2020, have underperformed compared to the East Coast cities.
“They are now enviable, affordable and continue to grow thanks to immigration-led demand, strong economies and a narrow housing supply.”
Mr. Groves noted that in the overly inflated markets of Sydney and Hobart, prices had begun to rationalize due to buyer uncertainty.
“The Brisbane market remains buoyant thanks to immigration pressures fueling demand, while Adelaide continues to do well thanks to the downstream effects of relocations from higher priced areas through Melbourne,” he said.
“Price hikes have already been reversed in Melbourne, Sydney and Hobart, while Perth and Adelaide remain solid, off-constrained growth.”
Groves said Perth remained the most affordable capital in Australia.
“The average mortgage holders forego about 24 percent of their wages to service their loans,” he said.
“Compared to the ideas of Sydney who are currently giving up an average of 46 per cent of their salary to meet their mortgage payments.
“Average home prices in Perth are around $550,000, less than half the median prices in Sydney and well below Hobart, Brisbane and Adelaide.”
Mr Groves added that Darwin and some of the major regional city areas in eastern Victoria, northern Adelaide and northeastern Tasmania also offer good value.
He noted that interest rates remained low and out of “emergency” levels.
“It is good that Australian property markets are returning to a more balanced environment, although with housing supply still below baseline demand, property values are likely to retain many of the gains they have made since early 2020,” he said.