To say the 2022 market was a “pivot” is a tech-lingo understatement of epic proportions.
Late last year we were coming off the back of an extraordinary 12-months’ worth of capital gains. The upsides were widespread and high. From coast to coast, population centres saw their real estate numbers skyrocket to double digit gains fuelled by FOMO.
Of course, that all turned around very quickly and most dramatically in our major capital cities come April/May this year. Runaway inflation needed a rapid response, so the RBA brought forward interest rate increases which caught many owners and buyers totally off guard. There had been an expectation rates would remain on hold until closer to 2024 – but the monthly upticks in the cash rate from May through to year’s end took all the steam out of markets.
Throw in a few other significant events this year such as the entrenched war in Ukraine, political turmoil in the UK, continued pandemic challenges and, of course, the election of a new federal government in Australia. All of these have repercussions for consumer confidence and the national economy, and the consequences have played out in real estate values.
So, the “interesting” times continue for Australian property holders. Our largest capital cities saw many suburbs experience significant reductions in property prices, as did some regional centres.
As we do each year in the December Month in Review, our teams have come together to deliver a report card about the past 12 months. This year’s edition is compelling because of the way markets have moved at such vastly different speeds depending on location, price point and property type.
Our residential submissions identify which sectors performed, and which didn’t. Our crews also reveal what surprised them most about their local markets this year.
Also, for a little sport, our teams get the chance to reflect on the forecasts they made way back in February when everywhere felt a bit more buoyant. These valuers have come clean on where they got it right and where they didn’t. It’s a compelling insight into the predictive psyche of our country’s most astute property minds.
Onto our commercial specialists, and it’s another yearly retrospective, this time tackling Australian office investment in 2022. Our incredibly talented professionals take a nuanced view of our most important office sector locations. From price movements to rental shifts, prime sites to secondary locations, it’s all laid bare by the team.
And we couldn’t wrap up a Month in Review without our rural divisions delivering their annual retrospectives as well. We have Australia’s most comprehensive coverage of rural property delivered by specialists of unimpeachable expertise. If you have any interest whatsoever in the primary production sector, this report is simply the best snapshot of the year you will find.
And there it is dear readers, a year in review for our final edition.
We hope you enjoy a little downtime this festive season and bring in 2023 with joyous abandon.