As a leading property buyer’s agent in Sydney’s Inner West, we have been closely monitoring the trends shaping Australia’s real estate market. One of the most significant factors influencing home values across the nation at the moment is the impact of internal and overseas migration.
In this article, we will delve into the latest insights from industry experts, as well as recent data to understand how population movements are driving property prices in different regions of Australia.
The Hottest Markets: Western Australia and Queensland
According to recent CoreLogic figures, Western Australia and Queensland are currently experiencing the strongest price growth in the country. Home values in Perth have risen by an impressive 19.8% over the past year, while regional Western Australia has seen a 12.2% increase. Similarly, Brisbane home values have grown by 15.9%, and regional Queensland prices have lifted by 10.5%.
Several factors contribute to the outperformance of these markets, including affordability and migration. A typical family home in Perth costs around $735,000, while in Brisbane, it is approximately $910,000. These prices are substantially lower than Sydney’s median house price of $1.415 million, making these cities attractive to buyers seeking better value for money.
Migration Matters: The Impact of Population Movement
Migration, both internal and overseas, plays a crucial role in shaping demand for housing and, consequently, home values. As John McGrath, Chief Executive of McGrath Estate Agents, points out in a recent article, strong economic growth typically translates into rising property prices, which is another reason why Western Australia and Queensland are currently leading the pack. Indeed, the Australian economy’s performance plays a pivotal role in shaping the real estate market. Strong economic growth leads to increased employment opportunities, higher incomes and consequently greater demand for housing which drives up home values.
The Australian Bureau of Statistics (ABS) recently reported that the nation’s population grew by 1.1% in the year ending September 30, 2023, with overseas migration accounting for 67.5% of this growth. As more people choose to call Australia home, the demand for housing increases, putting upward pressure on prices.
Internally, we are witnessing a significant shift in population from the larger cities to regional areas and smaller capitals. This trend, which was accelerated by the COVID-19 pandemic and the rise of remote working, is driving up property values in these destinations as more people seek a better work-life balance and more affordable housing options.
Prices in Other Capitals
While Western Australia and Queensland are currently leading the charge in terms of price growth, other capital cities are also experiencing rises, albeit at a slower pace. Sydney home values have increased by a solid 9.6% over the past year, which is still strong by historical standards. Bear in mind that Sydney has traditionally been the best performer. Regional NSW has seen a more modest 4% lift, while Canberra home values have risen by 1.9%.
In the southern states, Melbourne home prices have grown by 3.2%, while regional Victoria has experienced a slight decline of 0.7%. Hobart and regional Tasmania have seen minimal growth, with home values rising by 0.3% and 0.4%, respectively.
These variations in price growth across different markets highlight the importance of working with experienced property professionals who have a deep understanding of local market conditions. At Buyer’s Domain, our team of expert buyers’ agents specialises in helping clients navigate the complexities of the Sydney real estate market, particularly in the highly sought-after areas of the Eastern Suburbs and Inner West.
The Outlook for Sydney’s Inner West and Eastern Suburbs
The Eastern Suburbs and Inner West have long been popular among home buyers and investors due to their proximity to the CBD, excellent public transport links, vibrant cultural scene and lifestyle options. As overseas migration continues to drive demand for housing in Sydney, we expect these areas to remain highly desirable.
However, it is essential for buyers to be well-informed and have a clear strategy in place when entering the market. Competition for properties can be fierce, and prices in these areas are often higher than the Sydney median. This is where engaging a buyer’s agent can prove invaluable.
At Buyer’s Domain, we work closely with our clients to understand their unique needs, preferences, and budget. Our extensive network and market knowledge allow us to identify off-market opportunities and negotiate the best possible price on behalf of our clients. By partnering with us, buyers can be confident that they are making a sound investment decision and securing their dream home in one of Sydney’s most liveable areas.
Conclusion
The impact of internal and overseas migration on Australia’s real estate market cannot be overstated. As population growth continues to drive demand for housing, particularly in regions like Western Australia and Queensland, home values are likely to maintain their upward trajectory.
In Sydney’s Eastern Suburbs and Inner West, the influx of new residents, coupled with the areas’ enduring popularity, is expected to support price growth in the coming years. However, navigating these competitive markets requires expertise and strategic thinking.
If you are considering purchasing a property in the Eastern Suburbs or Inner West, we invite you to contact the team at Buyer’s Domain. Our experienced buyers’ agents are committed to helping you achieve your real estate goals and securing your ideal home in one of these thriving parts of Sydney.
