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A new report has revealed just how much capital growth was achieved by investors across Australia’s capital cities and regions in the latest property cycle.
Property portal Domain’s end-of-year wrap has revealed “a roller coaster in property cycles” — noting the once-in-a-generation property boom that resulted in pricing peaking in March 2022.
While property prices have softened in the month since then, the price cycle remains 27 per cent higher across the combined capital cities, on average, than it did in the trough that occurred back in mid-2020.
In monetary terms, that’s gains of approximately $218,000 on the average home.
Across the regionals, the figure is even more pronounced, with a 32 per cent upswing being buffered by a downswing of just -1.3 per cent, leading to overall gains of 30.3 per cent.
Weighing in on the findings, Domain’s chief of research and economics, Dr Nicola Powell, said that “the past two years have been fascinating to watch in real estate”.
“After soaring price growth in 2021, it was inevitable that we would see an adjustment phase of the property cycle in 2022,” she said.
From her perspective, the sheer height of the upswing compared to the downturn “is a reminder that home owners or prospective buyers need to maintain an overall perspective”.
“History tells us that in the last 30 years, the duration and steepness of an upswing are longer and greater than a downturn, supporting the idea that it’s not timing the market, it’s the time spent in the market that counts,” she said.
So just how much have markets across Australia gained since 2020?
Combined capitals
Upswing: 33.6 per cent
Downturn: -4.9 per cent
Total overall gains compared to pandemic trough: 27 per cent
Combined regionals
Upswing: 32 per cent
Downturn: -1.3 per cent
Total overall gains compared to pandemic trough: 30.3 per cent
Sydney
Upswing: 40.2 per cent
Downturn: -8.3 per cent
Total overall gains compared to pandemic trough: 28.6 per cent
Melbourne
Upswing: 24.1 per cent
Downturn: -6 per cent
Total overall gains compared to pandemic trough: 16.7 per cent
Brisbane
Upswing: 42.1 per cent
Downturn: -4.3 per cent
Total overall gains compared to pandemic trough: 36.1 per cent
Adelaide
Upswing: 46.9 per cent
Downturn: 0 per cent
Total overall gains compared to pandemic trough: 46.9 per cent
Perth
Upswing: 23.8 per cent
Downturn: -1.5 per cent
Total overall gains compared to pandemic trough: 21.9 per cent
Canberra
Upswing: 50.3 per cent
Downturn: -6 per cent
Total overall gains compared to pandemic trough: 41.2 per cent
Darwin
Upswing: 41.2 per cent
Downturn: -8.1 per cent
Total overall gains compared to pandemic trough: 29.8 per cent
Hobart
Upswing: 52.2 per cent
Downturn: -3.3 per cent
Total overall gains compared to pandemic trough: 47.2 per cent
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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