- Home Price Index (Source: PropTrack)
The PropTrack Market Insight report for June 2024 reveals a significant increase in rental costs across Australia, driven by low vacancy rates and population growth. The rise in rental prices is observed in both urban and regional areas, with Sydney being the most expensive capital city for renters. The report also highlights the outpacing of unit rents over house rents, indicating a growing preference for apartment living. Additionally, it emphasizes the urgent need for policy interventions to address the rental crisis and provide relief to struggling renters. The data underscores the importance of increasing housing supply and improving affordability to tackle the ongoing rise in rental costs.
- Dwelling Approvals (Source: ABS)
In May, the number of approved homes to be built in Australia increased by 5.5%, with private sector dwellings leading the charge. However, the total approvals are still below the government’s housing goals. Western Australia saw the largest rise in approvals, driven by robust demand and low supply. Despite recent improvements, approvals are still well below the target. The value of approved buildings also saw a slight increase, with a rise in residential building value but a drop in non-residential building value.
- Brisbane Property Market (Source: Melinda Jennison)
The property market in Brisbane is experiencing strong growth, with prices rising steadily. Factors such as high demand, limited supply, increased investor interest, and government incentives for first home buyers are contributing to this trend. Brisbane’s property market outperforms other capital cities, with both houses and units seeing significant increases in value. Rental growth has also slowed, but remains higher than long-term averages. The market outlook is positive, driven by tax cuts, low mortgage arrears, and high profitability for sellers. The tight housing supply is expected to sustain price momentum, making it an opportune time for buyers and investors. The market is predicted to continue its strong performance in the near future.
- Rental Pain Index (Source: Suburbtrends)
The Rental Pain Index (RPI) report indicates that Australians are facing rental stress, with Queensland and South Australia particularly exceeding critical levels. The report highlights high rents and decreasing affordability, affecting one-third of Australians who are renters. While some states show signs of easing rental pressure, the overall picture remains challenging. The situation is particularly dire for low-income earners, with concerns about the impact on household budgets. The report emphasizes the need for more housing and immediate solutions for emergency accommodation, calling for government intervention to reduce rental costs to sustainable levels. The ongoing rental crisis is described as a “human tragedy unfolding,” with a need for urgent action to address the housing shortage and affordability issues.
- National Rental Vacancy (Source: PropTrack)
The national rental vacancy rate in Australia has increased, providing relief for renters in urban areas, particularly in Sydney and Melbourne. However, the overall vacancy rate is still low and the rental market remains competitive. The situation is even more challenging in regional areas, where vacancy rates are lower than in the cities. The imbalance between housing supply and population growth is expected to persist, especially in Western Australia, Queensland, and New South Wales.
- Australian Population (Source: Glenn Capuano)
The Australian population reached 26,966,789 in December 2023, with a record increase of 651,200 people in the calendar year. Overseas migration was a significant factor in this growth, accounting for 84% of the increase. While all states and territories experienced positive population growth, Western Australia had the fastest growth at 3.31%, driven by high overseas migration. Queensland and Western Australia were the only areas with positive interstate migration. Tasmania experienced a return to slow growth after a period of higher migration during COVID.
- CoreLogic Auction Results (Week ending 7 July 2024)
(Total Auction / Clearance Rate)
– Sydney: 766 / 68.5%
– Melbourne: 669 / 60.9%
– Brisbane: 136 / 73.9%
– Perth: 11 / 45.5%
– Canberra: 43 / 62.8%
– Adelaide: 151 / 77.5%
– Tasmania: NA / 0%
– Combined Capitals: 1,776 / 66.5%
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