Australian property prices have surged to an all-time high, rising by 0.22% in November and marking a substantial 5.53% increase throughout 2023, according to PropTrack’s latest data[i]. This upsurge comes as numerous Australians hasten to complete their property objectives before Christmas.

Raine & Horne’s research further supports this surge, revealing a staggering 49.12% spike in home sales exchanged values in November compared to the same month last year. 

Nationally, the median property value is $761,000, surpassing the peak established in March 2022 by 1.29%. Sydney, which leads the way with a median price of $1.065 million, enjoyed an 8.4% increase in median values over the last year. Adelaide, however, has witnessed the most significant growth surge, leaping by 9.74% to reach a median price of $703,000.

Also underlining the resilience of bricks and mortar, the Australian Bureau of Statistics reports that new owner-occupier first home buyer loan commitments rose 5.1% in October 2023 and were 6.8% higher compared to a year ago[ii].

Furthermore, the enthusiasm for real estate appears poised to persist until Christmas, as indicated by Raine & Horne data, with the number of groups attending open for inspections (OFIs) showing an exceptionally bullish trend, up by nearly 30% compared to November last year.

Angus Raine, Executive Chairman of Raine & Horne, noted that while buyers rush to secure suitable properties before the festive season starts, the number of homes available for sale decreased by 7.6%. “The shortage of stock presents a clear opportunity for those considering a sale to make a move,” Angus said.

“Moreover, the disparity between the supply available and the evident demand continues to exert significant upward pressure on housing prices in many markets across Australia.”

Angus continues, “It’s also genuinely pleasing that the Reserve Bank ended the year by acknowledging the impact soaring living costs have had on numerous families in 2023, including higher interest rates, groceries, petrol, and energy.

For Aussies with a $600k mortgage, research from Finder found that they are forking out roughly $1,349 more per month than they were before the RBA started lifting the cash rate in May last year. 

“This interest rate relief serves as a welcome development and provides for a positive end to a strong year for the Australian real estate market.”