According to data released by the Australian real estate data company CoreLogic, the Australian property market went through a volatile phase in the first half of this year.

Despite the initial impact of the fastest interest rate hike cycle in thirty years, which dampened housing demand, property prices have rebounded and have risen by 6.3% year-to-date.

However, economists have issued warnings about the sustainability of this rise in property prices. They point out that if the unemployment rate continues to rise and the Reserve Bank of Australia maintains relatively high cash rates, the property price recovery driven by population growth and a severe housing shortage may be unsustainable.

Warren Hogan, the chief economist at Judo Bank in Australia, suggests that the current real estate market faces challenges from slowing economic activity and a weak labor market, and therefore, the rise in property prices may be a false rebound.

Hogan further predicts that while population growth and a shortage of new housing will provide some support for property prices, there is a risk of a price decline in the Australian property market in 2024-2025. He believes that the slowdown in economic activity and an unstable labor market will have a negative impact on the real estate market, possibly leading to a decline in property prices.

Additionally, some market observers point out that the resurgence of the real estate market brings potential risks. Particularly in major Australian cities such as Sydney and Melbourne, rapid price increases may worsen housing affordability, making it more difficult for many people to afford homes. This could lead to social issues and have negative impacts on the overall economy.

To address these issues, the government and central bank may need to implement appropriate policy measures. For example, they can control the overheating of the real estate market through adjustments in monetary policy and strengthened regulation to ensure market stability.

Furthermore, the government can take measures to encourage housing construction, increase supply to meet market demand, and improve housing affordability for buyers.

In summary, the Australian real estate market has seen a rebound in prices in the first half of this year, but economists express concerns about the sustainability of this rebound. They believe that a slowdown in economic activity and a weak labor market could negatively impact the real estate market, leading to potential price declines.

Therefore, it's crucial for the government and central bank to closely monitor market dynamics and take appropriate policy measures to ensure the stability of the real estate market.