Where property prices are rebounding around the country
Interest rate rises and cost of living pressures resulted in mixed results on home values around Australia
Interest rate rises and cost of living pressures resulted in mixed results on home values around Australia
Australian home prices rebounded strongly in 2023, new figures released today have shown.
The Home Value Index from property data provider CoreLogic revealed prices surged by 8.1 percent last year after falling -4.9 percent in 2022. However, recorded growth is nothing like the rises in 2021, which saw home prices swell by 24.5 percent.
CoreLogic research director Tim Lawless said while the greatest increases were seen at the start of 2023, consistent interest rate rises announced by the RBA put a dampener on growth as the year progressed, with just a 0.4 percent increase in December.
“This was the smallest gain in our national monthly HVI since values started rising in February,” Mr Lawless said. “After monthly growth in home values peaked in May at 1.3 percent, a rate hike in June and another in November, along with persistent cost of living pressures, worsening affordability challenges, rising advertised stock levels and low consumer sentiment, have progressively taken some heat out of the market through the second half of the year.”
While regional areas saw record price rises during COVID, it is now the Australian capitals leading increases in home values, Mr Lawless said.
“Stronger conditions across capital city markets is a reversal of the early COVID trend which saw regional markets experience higher demand amid strong internal migration,” he said. “Regional migration trends have mostly normalised through 2023, and the significant capital gains recorded through 2020 to 2022 has meant many regional markets have become less affordable.”
However, growth across capital cities is uneven, with Perth recording the highest annual increases at 15.2 percent, followed by Brisbane on 13.1 percent and Sydney on 11.1 percent. The results were followed by Adelaide (8.8 percent), Melbourne (3.5 percent) and Canberra (0.5 percent). Darwin and Hobart values declined over the past 12 months, down -0.1 percent and -0.8 percent respectively.
In Perth, the top performing suburb was Armadale, up 25.2 percent, followed by Gosnells, 22.6 percent.
In Brisbane, home values in the suburb of Nathan are up 22 percent on last year, followed by Mt Gravatt, up 21.1 percent.
For the Sydney market, Blacktown lead the way, with a 15.8 percent increase in home values, followed by the inner west suburbs of Marrickville – Sydenham – Petersham, which increased by 15.3 percent.
Rank |
SA3 Name |
SA4 Name |
Median Value |
Annual change |
Greater Sydney |
||||
1 |
Blacktown |
Sydney -Blacktown |
$969,287 |
15.8% |
2 |
Marrickville -Sydenham -Petersham |
Sydney -City and Inner South |
$1,741,931 |
15.3% |
3 |
Hornsby |
Sydney -North Sydney and Hornsby |
$1,485,422 |
15.3% |
4 |
Strathfield -Burwood -Ashfield |
Sydney -Inner West |
$917,641 |
14.9% |
5 |
Eastern Suburbs -North |
Sydney -Eastern Suburbs |
$1,988,175 |
14.6% |
6 |
Warringah |
Sydney -Northern Beaches |
$2,068,585 |
14.5% |
7 |
Canterbury |
Sydney -Inner South West |
$1,085,111 |
14.3% |
8 |
Mount Druitt |
Sydney -Blacktown |
$812,868 |
14.1% |
9 |
Merrylands -Guildford |
Sydney -Parramatta |
$1,060,399 |
14.1% |
10 |
Leichhardt |
Sydney -Inner West |
$2,007,850 |
14.0% |
Greater Melbourne |
||||
1 |
Darebin -North |
Melbourne -North East |
$762,619 |
7.9% |
2 |
Banyule |
Melbourne -North East |
$935,214 |
7.7% |
3 |
Monash |
Melbourne -South East |
$1,223,086 |
7.6% |
4 |
Knox |
Melbourne -Outer East |
$910,533 |
7.5% |
5 |
Manningham -West |
Melbourne -Inner East |
$1,388,013 |
7.1% |
6 |
Manningham -East |
Melbourne -Outer East |
$1,539,018 |
6.9% |
7 |
Whitehorse -West |
Melbourne -Inner East |
$1,213,085 |
6.7% |
8 |
Whitehorse -East |
Melbourne -Outer East |
$1,185,513 |
6.1% |
9 |
Casey -North |
Melbourne -South East |
$808,703 |
5.3% |
10 |
Casey -South |
Melbourne -South East |
$758,745 |
5.1% |
Greater Brisbane |
||||
1 |
Nathan |
Brisbane -South |
$1,079,497 |
22.0% |
2 |
Mt Gravatt |
Brisbane -South |
$1,117,075 |
21.2% |
3 |
Sunnybank |
Brisbane -South |
$1,026,758 |
19.4% |
4 |
Carindale |
Brisbane -South |
$1,212,544 |
19.1% |
5 |
Holland Park -Yeronga |
Brisbane -South |
$756,166 |
18.8% |
6 |
Springwood -Kingston |
Logan -Beaudesert |
$638,552 |
17.1% |
7 |
Chermside |
Brisbane -North |
$945,095 |
16.7% |
8 |
Rocklea -Acacia Ridge |
Brisbane -South |
$935,200 |
16.2% |
9 |
Nundah |
Brisbane -North |
$794,173 |
15.7% |
10 |
Forest Lake -Oxley |
Ipswich |
$665,472 |
15.4% |
Greater Adelaide |
||||
1 |
Playford |
Adelaide -North |
$474,782 |
14.3% |
2 |
Gawler -Two Wells |
Adelaide -North |
$590,250 |
13.7% |
3 |
Salisbury |
Adelaide -North |
$582,159 |
13.2% |
4 |
Tea Tree Gully |
Adelaide -North |
$700,396 |
11.5% |
5 |
Port Adelaide -West |
Adelaide -West |
$691,116 |
11.0% |
6 |
Onkaparinga |
Adelaide -South |
$663,042 |
9.9% |
7 |
Port Adelaide -East |
Adelaide -North |
$737,926 |
8.5% |
8 |
Marion |
Adelaide -South |
$797,606 |
8.3% |
9 |
Campbelltown |
Adelaide -Central and Hills |
$859,213 |
8.2% |
10 |
Burnside |
Adelaide -Central and Hills |
$1,416,110 |
8.2% |
Top 10 capital cities SA3s with the highest 12-month value growth – Dwellings. Source: CoreLogic
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The company is best known for its prestigious Penfolds brand
Australia’s Treasury Wine Estates admitted defeat in its effort to divest brands including Wolf Blass and Blossom Hill, moderating its annual earnings guidance amid weaker sales of its cheaper products.
Last year, Treasury outlined plans to offload its so-called commercial portfolio in a pivot toward costlier, higher-margin brands. As part of the move, it bought California’s Frank Family Vineyards in 2021 and Daou Vineyards in 2023 in deals worth US$1.31 billion combined.
On Thursday, Treasury told investors that it had failed to find a buyer for its budget brands.
“TWE has concluded that the offers received for these brands did not represent compelling value and therefore their retention is the best course of action,” Treasury said.
The company, which is best known for its prestigious Penfolds brand, said that demand for brands typically retailing for less than US$19 a bottle had fallen by 4.9% in the December-half. That includes the commercial portfolio, which comprises the company’s cheapest offerings.
As a result, Treasury expects so-called Ebits—earnings before interest, tax and other impacts including one-off items—for the full fiscal year of 780 million Australian dollars, or about US$489.8 million. That’s at the bottom end of its previously issued A$780 million-A$810 million guidance range.
Even so, Treasury on Thursday reported a A$220.9 million net profit for its fiscal first half, up 33% on year as the company continued to re-establish its Penfolds brand in China following that country’s removal of tariffs on Australian wine.
Revenue rose by 20% to A$1.57 billion, while profit increased 33% to A$239.6 million once material items and currency moves were stripped out.
The average analyst forecast had been for a net profit of A$242.1 million from revenue of A$1.57 billion, according to data compiled by Visible Alpha. Treasury reported first-half Ebits of A$391.4 million.
The board declared a dividend of 20 Australian cents a share, up from 17 cents a year earlier.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.