That is according to the latest
South Australia: Cheapest places to buy a house in Australia
While Tasmania may be the Australian state that is cheapest to buy a house right now, there is another state that may be more affordable, when you consider employment opportunities and income levels compared to home prices and cost of living.
Prices across the country are set to slide by up to 10 per cent by the end of 2023, with Sydney, Brisbane and Canberra to be worst affected by the downturn. The latest PropTrack report predicted property values in Sydney, Brisbane and Canberra could slump by as much as 11 per cent as successive rate hikes bite.
Annandale, Camperdown, and Croydon recorded declines of more than 10 per cent, as did Avalon Beach, Beacon Hill and Redfern. Citywide, the median house price dropped 10.9 per cent last year— the steepest annual decline on Domain records — and units declined 6.5 per cent, but the pace of falls is easing.
Kilroy says that while there is no doubt the property market was in a downturn over the latter half of 2022, a crash is unlikely due to strong economic fundamentals. The first of these is demand, with high rents and the return of overseas migration resulting in more potential buyers.
As interest rates remain restrictive and unemployment rates might increase in 2023, the positive impact of demand and supply issues will be limited. Nationwide prices are expected to rise by approximately 2 per cent by the end of 2023.
Australian property values experienced a downturn in 2022 and prices continue to fall—but predictions of the overall peak-to-trough price decline tend to vary between 15-25%. Read more about whether the Australian property market is going to crash.
That is according to the latest CoreLogic data, which shows Sydney recorded the largest decline in values for houses and units, at 13.4 per cent.
Jarden analysts had previously predicted a price fall of 15% to 20%, with a bounceback of about 10% in 2024. Now, however, they expect prices to fall further and the cash rate to hit 4.1% by May.
Prices could fall further
If you buy in a recession, there is always the risk that prices could fall even further. That said, Australian property prices usually tend to rise in the long run, especially in capital cities. So if you're prepared to spend some time owning your property, you're likely to come out ahead.
The average annual growth rate for well-located capital city properties is about 7%, which means that Australia's median dwelling price should be around $1.1 million in 2030. But some properties will outperform others by 50-100% in terms of capital growth, so take these house price predictions with a big pinch of salt.
au's analysis showed that, even if prices rose at a similar rate to inflation over the next five years, the median house price would still be near $1.5m in 2027.
Westpac has revised its house price forecasts, with dwelling values expected to stabilise in 2023 (initially forecast a -7% decline). National dwelling values are predicted to rise 5% in 2024, up from 2%.
New research by Compare the Market has named the most cost-effective cities to live in based on factors such as the average income, utility costs, grocery costs and apartment costs. Melbourne was crowned the most cost-effective city in Australia, scoring 3.36 out of 5 stars.
The cheapest major city for housing in Australia is Adelaide. Overall, it's 61.19% less expensive than in Sydney with rent being on average $1,338 cheaper a month.
One of the primary reasons for the affordable land prices in Tara QLD is the impact of coal seam gas (CSG) mining on the town. Tara has been home to CSG mining operations for many years, and while the industry has provided jobs and economic opportunities for some, it has also had negative impacts on the community.
It'll probably come as no surprise, but the best time of year to buy property in Australia is just before or just after winter. As people hibernate during the colder months, fewer properties are listed for sale. There is also a significantly reduced number of buyers.
The OECD's stark warning of a “rout” in house prices that ripples across the entire economy has raised the spectre of the crash of 1987.
Australia's current housing crisis is driven by the nation's unique demographics and a shortage of available residential land near jobs and services, with the impact of interest rates and government homebuyer subsidies often overstated.
High house prices in Australia are primarily driven by supply and demand imbalances, tax policies, low-interest rates, and rising household debt.
If the price rises are maintained for the rest of the year, home values will end up about 4% higher in 2023, defying earlier predictions of sharp falls of 10% or more for this year, CoreLogic says. “Economists are shredding their previous price forecasts,” said Sally Tindall, research director for RateCity.
Key points. A new report ranks global property markets as fair valued, overvalued or in bubble risk territory. Sydney property prices are overvalued despite recent price falls, the report found. Experts warn prices will not necessarily fall back to levels that would be fair value.
It's becoming more evident the housing market has moved through an inflection point after falling -9.1% between May 2022 and February 2023. Not only are we seeing housing values stabilising or rising across most areas of the country, a number of other indicators are confirming the positive shift.