Australian property values bottom out as borrowers anticipate end of rate hikes
The latest CoreLogic data points to an end to falling housing values across Australian capitals
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Housing values appear to have bottomed out, new data from CoreLogic reveals. The latest Home Value Index showed values increased by 0.5 percent over April, after a rise of 0.6 percent in March.
Australian housing values dropped -9.1 percent between May 2022 and February 2023 but are now higher by 1.0 percent over the past three months.
Sydney values continued to increase over April, recording a 1.3 percent rise. This brings values up by 3.0 percent since January this year. All four of Australia’s largest capitals have now seen rises in housing values over the past three months.
CoreLogic research director, Tim Lawless, says prices are most likely on the way up again, which poses potential problems for the market as demand continues to outstrip supply.
“A significant lift in net overseas migration has run headlong into a lack of housing supply,” he said. “While overseas migration would normally have a more direct correlation with rental demand, with vacancy rates holding around one percent in most cities, it’s reasonable to assume more people are fast tracking a purchasing decision simply because they can’t find rental accommodation.”
Recent pressure on the RBA Board to put a hold on further interest rate increases had increased perceptions that they would either stabilise at their current level, or near to it. The uptick in values while interest rates remain at above average levels has a precedent.
“The last time we saw housing values trending higher through a rising interest rate environment was during the mid-to-late 2000s when the mining boom was underway,” Mr Lawless said. “This period was also characterised by surging net overseas migration that contributed significantly to housing demand.”
The Home Value Index also revealed that low levels of supply were continuing to support housing values as the numbers of newly listed properties, with the four-week trend at around -14 percent below average for this time of year.
The RBA Board will meet tomorrow to discuss the possibility of another increase in the cash rate. Senior economist at PropTrack, Eleanor Creagh said there was a reasonable possibility that a further rise would be put on hold as the full impact of previous increases played out.
“In April, inflation was higher and the labour market remained tight, which saw the board consider raising the cash rate another 25 basis points,” she said. “Instead, it opted to hold the cash rate steady at 3.60 percent, giving the RBA room to pause and assess how economic conditions unfold.
“There is still a way to go in returning inflation to the target range, but with the impact of higher interest rates yet to fully impact household cash flows, and set to do so in months ahead, we’re likely to continue seeing inflation move lower. This gives the RBA leeway for a continued period of patience in May.”
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Citizen Kanebridge member Marcel Zalloua delivered a standout result in Tigani Motorsport’s Mercedes-AMG GT3 Evo, backed by Robb Report Australia & New Zealand and Citizen Kanebridge.
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Sydney’s night sky lit up with speed and precision when Tigani Motorsport’s Mercedes-AMG GT3 Evo charged to a second-place finish in the Pro-Am class during Race 1 of the GT World Challenge Australia at Sydney Motorsport Park.
Behind the wheel was entrepreneur and Citizen Kanebridge member Marcel Zalloua, partnered with Supercars regular Thomas Randle in a formidable one-off pairing that impressed from the outset.
The result marks a major milestone for Zalloua, a returning driver with previous success in the Am class, and continues Tigani Motorsport’s strong form in the 2025 season.
Zalloua is part of Citizen Kanebridge, an invitation-only club based in Sydney.
The club curates exclusive events, thought-leadership forums and networking opportunities for high-achieving individuals across investment, innovation and entrepreneurship.
The sleek #44 AMG GT3 Evo also sported a high-end lineup of sponsors, including Robb Report Australia & New Zealand and Citizen Kanebridge, alongside other premium backers — all part of a strategy to align the vehicle with luxury, performance and lifestyle excellence.
Race 1 saw the Zalloua-Randle duo execute a clean, strategic drive to claim the podium, with the car showing strong pace under lights.
Although Race 2 proved more challenging with a ninth-place finish in class, their combined effort across the weekend delivered valuable points to Tigani Motorsport’s championship campaign.
Tigani Motorsport continues to cement itself as a serious contender in the GT racing scene, with smart driver pairings, high-calibre partnerships, and a commitment to performance both on and off the track.
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