The report highlights a significant trend in 2023, showcasing a widening gap in the growth of property values between capital cities and remote regions. The average increase in residential values in capital cities was notably higher at 9.3%, more than twice the average growth of 4.4% in remote areas.

While there was an increase in property values in 2023, the growth was relatively smaller compared to the recorded 24.5% surge in 2021. Factors such as economic pressures, high-interest rates, cost of living pressures, and subdued consumer confidence have impacted the market, leading to a gradual cooling. According to CoreLogic's forecast, property prices are expected to decline again in 2024, with a national average drop of approximately 3% to 5%.

Despite the rebound in the Australian real estate market in 2023, buying a home remains a significant burden for young people and first-time buyers. Due to high property prices and increased deposit requirements, many are forced to continue renting. The government has acknowledged this issue and is actively seeking solutions.

The government has implemented shared equity programs to help buyers reduce their deposits and secure mortgages. Under these programs, the government contributes a certain percentage of the property purchase price, gaining equity shares in the property, but the mortgage and property belong to the buyer.

Several state and territory governments in Australia have implemented these plans, but broader implementation is needed. The government must prioritize the lower-end market and first-time buyers, implementing appropriate policy measures to alleviate the housing crisis.

In 2023, Sydney remains the most expensive city to purchase property nationally, with an average home value close to AUD 1.13 million. Canberra, Brisbane, and Melbourne follow closely, with average home prices of AUD 843,000, AUD 787,000, and AUD 780,000, respectively. Darwin is the most affordable capital city to buy a home, with an average value of AUD 496,000.

Michael Fotheringham, Managing Director of the Australian Housing and Urban Research Institute, emphasizes that the government needs to build more homes to help address the housing crisis. Policy focus should be on the lower-end market to assist first-time buyers in entering the market.

The federal government has proposed legislation for the "Help to Buy" scheme, a shared equity program seen as a more sensible approach for first-time buyers to enter the market. Fotheringham suggests that the government must continue to take measures to ensure that young people and first-time buyers have sufficient funds to purchase homes.