Rising interest rates might be putting off some people from purchasing a property amid fears they cannot afford the mortgage stress.
But whether you are looking for a house to make your home, or an investment property, there are still some bargains to be found across Australia.
Real Estate Institute of Australia president Hayden Groves told NCA NewsWire markets like Sydney, spurred on by low interest rates and economic stimulus, had experienced rapid price gains of about 30 per cent in 2021, peaking earlier this year.
“Other east coast markets have performed similarly well and are now beginning to moderate as affordability constraints impact,” he said.
“In contrast, the markets of Perth and Darwin, since early 2020, have underperformed comparative to east coast cities.
“They are now enviable, more affordable and continue to grow thanks to migration-led demand, strong economies and tight housing supply.”
Mr Groves observed that in the hyper-inflated markets of Sydney and Hobart, prices were beginning to rationalize due to buyer uncertainty.
“Brisbane’s market remains buoyant thanks to migration pressures fueling demand, whereas Adelaide continues to perform well thanks to the flow-down effects from relocations from higher priced regions across Melbourne,” he said.
“Price rises have already reversed in Melbourne, Sydney and Hobart, while Perth and Adelaide remain strong off the back of more constrained growth.”
Mr Groves said Perth remained the most affordable capital in Australia.
“Average mortgage holders part with around 24 per cent of their wages to service their loans,” he said.
“Compared this to Sydney-siders who currently give up on average 46 per cent of their salary to meet their mortgage payments.
“Median house prices in Perth are about $550,000, less than half that of Sydney’s median prices and well below Hobart, Brisbane and Adelaide.”
Darwin and some major regional city areas in eastern Victoria, north Adelaide and northeast Tasmania also offered good value, Mr Groves added.
He noted interest rates remained low and were coming up from “emergency” levels.
“It is good news that Australian property markets head back to a more balanced environment, although as housing supply remains below underlying demand, property values are likely to retain much of their gains experienced since early 2020,” he said.