Where property prices are rebounding around the country
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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

By KANEBRIDGE NEWS
Tue, Jan 2, 2024 11:10amGrey Clock 3 min

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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Worried about the hordes of crowds and overall chaos the Olympics could bring, Parisians are fleeing the city in droves and inundating resort cities around the country. Hotels and holiday rentals in some of France’s most popular vacation destinations—from the French Riviera in the south to the beaches of Normandy in the north—say they are expecting massive crowds this year in advance of the Olympics. The games will run from July 26-Aug. 1.

“It’s already a major holiday season for us, and beyond that, we have the Olympics,” says Stéphane Personeni, general manager of the Lily of the Valley hotel in Saint Tropez. “People began booking early this year.”

Personeni’s hotel typically has no issues filling its rooms each summer—by May of each year, the luxury hotel typically finds itself completely booked out for the months of July and August. But this year, the 53-room hotel began filling up for summer reservations in February.

“We told our regular guests that everything—hotels, apartments, villas—are going to be hard to find this summer,” Personeni says. His neighbours around Saint Tropez say they’re similarly booked up.

As of March, the online marketplace Gens de Confiance (“Trusted People”), saw a 50% increase in reservations from Parisians seeking vacation rentals outside the capital during the Olympics.

Already, August is a popular vacation time for the French. With a minimum of five weeks of vacation mandated by law, many decide to take the entire month off, renting out villas in beachside destinations for longer periods.

But beyond the typical August travel, the Olympics are having a real impact, says Bertille Marchal, a spokesperson for Gens de Confiance.

“We’ve seen nearly three times more reservations for the dates of the Olympics than the following two weeks,” Marchal says. “The increase is definitely linked to the Olympic Games.”

Worried about the hordes of crowds and overall chaos the Olympics could bring, Parisians are fleeing the city in droves and inundating resort cities around the country.
Getty Images

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Meanwhile, the Olympics haven’t necessarily been a boon to foreign tourism in the country. Many tourists who might have otherwise come to France are avoiding it this year in favour of other European capitals. In Paris, demand for stays at high-end hotels has collapsed, with bookings down 50% in July compared to last year, according to UMIH Prestige, which represents hotels charging at least €800 ($865) a night for rooms.

Earlier this year, high-end restaurants and concierges said the Olympics might even be an opportunity to score a hard-get-seat at the city’s fine dining.

In the Occitanie region in southwest France, the overall number of reservations this summer hasn’t changed much from last year, says Vincent Gare, president of the regional tourism committee there.

“But looking further at the numbers, we do see an increase in the clientele coming from the Paris region,” Gare told Le Figaro, noting that the increase in reservations has fallen directly on the dates of the Olympic games.

Michel Barré, a retiree living in Paris’s Le Marais neighbourhood, is one of those opting for the beach rather than the opening ceremony. In January, he booked a stay in Normandy for two weeks.

“Even though it’s a major European capital, Paris is still a small city—it’s a massive effort to host all of these events,” Barré says. “The Olympics are going to be a mess.”

More than anything, he just wants some calm after an event-filled summer in Paris, which just before the Olympics experienced the drama of a snap election called by Macron.

“It’s been a hectic summer here,” he says.

Hotels and holiday rentals in some of France’s most popular vacation destinations say they are expecting massive crowds this year in advance of the Olympics.
AFP via Getty Images

Parisians—Barré included—feel that the city, by over-catering to its tourists, is driving out many residents.

Parts of the Seine—usually one of the most popular summertime hangout spots —have been closed off for weeks as the city installs bleachers and Olympics signage. In certain neighbourhoods, residents will need to scan a QR code with police to access their own apartments. And from the Olympics to Sept. 8, Paris is nearly doubling the price of transit tickets from €2.15 to €4 per ride.

The city’s clear willingness to capitalise on its tourists has motivated some residents to do the same. In March, the number of active Airbnb listings in Paris reached an all-time high as hosts rushed to list their apartments. Listings grew 40% from the same time last year, according to the company.

With their regular clients taking off, Parisian restaurants and merchants are complaining that business is down.

“Are there any Parisians left in Paris?” Alaine Fontaine, president of the restaurant industry association, told the radio station Franceinfo on Sunday. “For the last three weeks, there haven’t been any here.”

Still, for all the talk of those leaving, there are plenty who have decided to stick around.

Jay Swanson, an American expat and YouTuber, can’t imagine leaving during the Olympics—he secured his tickets to see ping pong and volleyball last year. He’s also less concerned about the crowds and road closures than others, having just put together a series of videos explaining how to navigate Paris during the games.

“It’s been 100 years since the Games came to Paris; when else will we get a chance to host the world like this?” Swanson says. “So many Parisians are leaving and tourism is down, so not only will it be quiet but the only people left will be here for a party.”

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