House price growth has slowed globally in the past five years, but new analysis shows Australia’s real estate market defied that trend.

Research from the independent property research collective PAR Group shows that between 2019 and 2023, Australia’s house price growth outperformed comparable global markets by 14.1%. This study examined the performance of housing markets in Australia, the US, Canada, the UK and New Zealand since 2019. It shows Australian house prices rose by 45.8%, while the global average was 31.7%.

Australia was the only country to record positive annual house price growth in 2023, with demand skyrocketing, causing massive supply shortages. The report says Australia had a shortfall of 89,000 homes in 2023.

PAR Group says there is an ongoing disparity between population growth and housing completions and it predicts a continuing rise in demand in Australia, particularly in seachange locations, as buyers continue to look for lifestyle locations that allow the opportunity for remote work. Although house price growth in Australia has eased in 2024, PAR Group noted that “actual and expected cuts to mortgage interest rates” could trigger another surge in housing demand and further intensify the already significant supply-demand imbalance.