Heat coming out of V-shaped property market recovery
Sydney and Melbourne are cooling but Perth, Brisbane and Adelaide are still rocketing, according to new price data
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The V-shaped recovery in Australia’s property market was interrupted in November, with CoreLogic’s national home value index recording its smallest monthly gain since the new growth cycle began in February. Melbourne home values dipped by 0.1% and Sydney’s growth rate slowed sharply to 0.3%, representing a significant cooling in Australia’s two biggest property markets, and dragging down the national home value growth rate to 0.6%.
Factors taking the heat out of Melbourne and Sydney include affordability constraints, rising interest rates, pessimistic consumer sentiment and a higher number of homes for sale. CoreLogic Research Director Tim Lawless said market weakness was more pronounced in the upper price brackets. “The more expensive end of the market tends to lead the cycles in these cities. As borrowing capacity reduces, we may be seeing more demand deflected towards lower housing price points, with the broad middle of the market now recording the strongest rate of growth in Sydney and Melbourne.”
Meantime, the Perth, Brisbane and Adelaide markets continue to rise strongly. Perth dwelling values surged by 1.9% in November – the largest monthly gain since March 2021 – while Brisbane moved 1.3% higher and Adelaide went up 1.2%. Mr Lawless said buyer demand was strong amid low levels of supply. “This imbalance between available supply and demonstrated demand is keeping strong upwards pressure on housing values across these markets, despite the downside factors leading to weaker housing market conditions across the lower eastern seaboard,” Mr Lawless said.
Canberra recorded subdued growth at 0.5%, Hobart values fell 0.1% and Darwin values fell 0.3% last month. The supply of homes for sale began increasing over winter, which is seasonally unusual, leading to stock levels above five-year averages in Hobart, Canberra, Melbourne and Sydney today.“In these cities, market conditions are now in favour of buyers as higher stock levels provide more choice, less urgency and greater opportunities to negotiate,” Mr Lawless said.
“The same can’t be said for Perth, Brisbane and Adelaide, where advertised stock levels remain remarkably low. Perth listings are nearly 40% below their five-year average for this time of the year, while listings are more than 30% below average in Brisbane and Adelaide. Unsurprisingly, these cities are continuing to show a consistently high rate of growth amid strong selling conditions.”
Perth, Brisbane and Sydney have been the strongest performing capital city markets of 2023 with home values up 13.6%, 11.9% and 11.3%, respectively. Regional markets have lagged behind the capital cities this year, with the strongest gains seen in regional South Australia, up 9.6%, regional Queensland, up 7.9% and regional Western Australia, up 7%. Overall, regional property prices remain 1.8% below their historical peak recorded at the top of the last cycle in May 2022.
Mr Lawless said it would be “a very different housing market” in 2024. “It is looking increasingly clear the housing market is moving through a new inflection point, with the rate of growth in home values becoming more diverse, but generally weakening,” he said. The prospect of higher interest rates for longer has likely dampened buyer confidence as well. “We don’t expect to see a material lift in housing activity until interest rates reduce, and that isn’t likely until the second half of next year.”
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Crafted by Pandolfini Architects with interiors by Lisa Buxton, the Glen Iris residence pairs industrial-inspired design with refined contemporary living and a five-car showroom pavilion.
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A bold architectural statement in Melbourne’s inner east, this unique Glen Iris home marries sculptural design with sophisticated family living in a remarkable real estate relationship.
Conceived by Pandolfini Architects, with interiors by Lisa Buxton, the custom-built four-bedroom, two-level home was crafted for its current owners but is now coming to market for the first time.
Listed via an expressions-of-interest campaign with Marshall White agents Rae and Hugh Tomlinson and Mandy Zhu, 8 Erica Ave is on the market with price expectations of $7.5 million to $8 million.
Its dramatic street appeal sets the tone for what’s to come, because beyond the contemporary façade sits a modern residence unlike any other.
Pandolfini’s team brief was to create an inviting home made from hard-wearing materials, with a palette inspired by ancient ruins and old industrial buildings.
The result is striking, cantilevered terracotta brickwork and a patinated copper-screened exterior that borrows hues from the classic neighbouring cottages.
One within the home, the Erica Ave property unfolds across three interconnected pavilions positioned along the deep block. Long gallery hallways are framed by floor-to-ceiling glass to showcase garden and pool views, making the most of the 886 sq m site.
Raw, heavily textured walls create an industrial aesthetic inside and out, while curious “upside-down” arched windows introduce a creative architectural twist.
At the heart of the home, the central living and dining zone is divided by a sculptural fireplace rendered in hard plaster. High barn-style spotted gum timber ceilings rise above bush-hammered concrete walls with Roman travertine floors, and American oak joinery.
In the marble kitchen, there are premium Wolf and Miele appliances, a butler’s pantry, an integrated study nook, and a bespoke curved window that wraps around a custom-made banquette dining space.
Walls of glass frame the north-facing terrace where a heated swimming pool and spa are enveloped by private landscaped gardens with an integrated barbecue setting.
Within the front pavilion, the large parents’ retreat features built-in and walk-in wardrobes, a dresser, and a travertine ensuite with a freestanding bathtub, rain shower, and a dual-marble vanity. Also on the ground floor is a second bedroom and a media room with a built-in daybed and a picture window overlooking the yard.
One floor up via the curved staircase with skylight, there are two more bedrooms with terrazzo bathrooms, study spaces, and leafy outlooks.
Car enthusiasts not only have a single lock-up garage on Erica Ave, but an additional rear showroom-style five-car pavilion or grand studio accessed via Irymple Ave. It has a high vaulted ceiling, a concealed in-floor Maha car lift, a workbench, and a sink.
Added extras include a mud room, laundry with side access, in-floor heating and climate control within the engineered European oak floors, deluxe joinery, and CCTV security.
The Glen Iris home is within walking distance of Central Park Village, Harold Holt Swim Centre, and Gardiner Station, as well as popular schools including Sacré Cœur, Korowa, and Caulfield Grammar.
The Pandolfini-designed house at 8 Erica Ave, Glen Iris is listed with Marshall White for $7.5 million to $8 million via an expressions of interest campaign.
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