If anyone follows property commentators on a regular basis you’ll know that crystal balls are notoriously unreliable.
In recent weeks we’ve seen headlines forecasting everything from a Brisbane property price “bloodbath” to growth of up to 7 per cent in 2023.
We know which headline we’d prefer.
But the reality is short-term betting on a long-term investment like property can be a dangerous game.
So what should you consider when deciding where to park your property dollars in 2023?
If you’re buying a home to live in, then you can narrow down your deliberations to a few key steps. Firstly, set a realistic budget. Then research locations within your price range. Lastly, know what you’re prepared to compromise on.
If you’re looking to invest, then research what’s happening with supply and demand in the local market, including key trends like population growth and infrastructure spend over time.
What about interest rates? Property market commentators are betting there are a few more rate rises to come, with possible rate drops later in the year.
And for those who can’t start the year without some kind of number to peg your property hopes on, here’s a list of capital city house price growth forecasts from the SQM Research Housing Boom and Bust Report for 2023 published by ABC news. This is based on a scenario where the official cash rate goes no higher than 4 per cent and is followed by rate cuts in the second half of the year.
- Brisbane: growth of 3 to 7 per cent
- Sydney: growth of 8 to 12 per cent
- Melbourne: growth of 2 to 6 per cent
- Adelaide: growth of 1 to 4 per cent
- Hobart: growth of 0 to 4 per cent
- Canberra: a drop of 2 to 3 per cent
- Darwin: a drop of 1 to 4 per cent
Making plans for 2023? View our current listings for sale or talk to us about selling.