Rising interest rates may deter some people from buying property amid fears that they cannot take the pressure of mortgaging them.
But whether you are looking for a home to build your own, or looking for an investment property, there are still some deals to be found in Australia.
Hayden Groves, president of the Real Estate Institute of Australia, told NCA Newswire markets such as Sydney, driven by low interest rates and economic stimulus, experienced rapid price increases of around 30 per cent in 2021 earlier this year.
“Other East Coast markets have performed equally well and have now begun to moderate as the impact of affordability constraints,” he said.
“In contrast, the markets in Perth and Darwin have, since the beginning of 2020, underperformed compared to East Coast cities.
“They are now enviable, more affordable and continue to grow thanks to migration-led demand, stronger economies and tighter housing supplies.”
Mr Groves observed that in the over-inflated markets of Sydney and Hobart, buyer uncertainty had begun to rationalize prices.
“The Brisbane market remains encouraging due to migration pressures, while Adelaide continues to perform well thanks to flow-down effects from relocation from higher priced areas in Melbourne,” he said.
“Price growth in Melbourne, Sydney and Hobart has already reversed, while Perth and Adelaide remain strong on the back of more constrained growth.”
Mr Groves said Perth remains the cheapest capital in Australia.
“The average mortgage holder pays about 24 percent of their salary to pay off their debt,” he said.
“Compare this to Sydney-siders who currently give up an average of 46 percent of their salary to meet their mortgage payments.
“Mean house prices in Perth are around $550,000, less than half of Sydney’s average prices and well below Hobart, Brisbane and Adelaide.”
Darwin and some major regional city areas in eastern Victoria, northern Adelaide and northeastern Tasmania also offered good value, Mr Groves said.
He said interest rates remained low and were falling above “emergency” levels.
“It is good news that Australian property markets return to a more balanced environment and, although housing supply remains below underlying demand, property values are likely to retain most of their gains experienced since the beginning of 2020 ,” They said.