_Adelaide ranks 8th out of 150 cities in the Global Residential Cities
The Global Residential Cities Index tracks the movement of average residential prices across 150 cities worldwide.
Global Residential Cities Index key findings:
- The annual increase in urban house prices has fallen below 10% for the first time since Q3 2021 as the higher interest rate environment starts to dampen demand and sales activity.
- Sixteen cities recorded a fall in prices year-on-year, up from 12 in the previous quarter, with cities in New Zealand, China and Australia well represented amongst them.
- The gap between the strongest and weakest-performing city within some countries is also widening.
- In Australia, the gap between the highest-ranking city, Adelaide (21%), and the market’s lowest ranking city, Sydney (-4%) now extends beyond 25 percentage points respectively.
There was a 5.5% average annual price growth across Australia’s capital cities in Q3 2022, down from 12.6% a quarter ago. Whereas there was a 9% global average annual price growth in Q3 2022, 220 bps lower than recorded a quarter ago.
The two capital cities in Australia, Adelaide and Brisbane, both had more than 10% year-on-year annual price growth in Q3 2022.
However, 8 Australian capital cities saw a lower annual price growth in Q3 than a quarter ago.
Commenting on the Report, Knight Frank Australia Head of Residential Research, Michelle Ciesielski said: “Capital values are likely to ease further in 2023 across all capital city markets, although regional areas of Australia are still expected to experience positive annual growth."
Erin van Tuil, Knight Frank’s Head of Residential, said: "Whilst the focus has come off capital value growth, sustained rental growth has allowed for more attractive gross rental yields to emerge for investors across most of Australia’s capital cities."
For more information, please contact:
Michelle Ciesielski
Partner, Head of Residential Research, Australia
+61 414 694 220
Email Michelle