Weekly Market Update (13 Oct 2023)

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Weekly Market Update (13 Oct 2023)
  1. Quarterly Rental Review (Source: CoreLogic)

    Rental growth in Australia has slowed down due to worsening affordability, but rental availability has tightened, leading to record low vacancy rates. CoreLogic’s Rent Value Index shows that rental values increased by 1.6% in the third quarter of 2023, compared to a 2.2% rise in the previous quarter. However, the national vacancy rate fell to a new low of 1.1%. The rising cost of living and limited rental listings have contributed to the slowdown in rental growth. The shortage of rental properties is affecting different regions to varying degrees. Rental growth for houses is outpacing unit rents, and the gap between house and unit rents has expanded to $36 per week. Rental conditions vary across different cities, with Darwin and Brisbane experiencing the strongest growth, while Hobart and Canberra saw rental declines. Despite the slowdown in rental growth, national gross rental yields remain relatively stable.

    The CoreLogic Quarterly Rental Review Report can be downloaded on corelogic.com or our Square Real Estate website at https://www.squareqld.com.au/advice/the-real-estate-report/.

 

  1. Construction Cost Index (Source: CoreLogic)

    The pace of construction cost growth in Australia has slowed down, indicating stabilization in the building sector. CoreLogic’s Cordell Construction Cost Index (CCCI) recorded a quarterly growth rate of 0.5% for the September quarter, the lowest since June 2019. The annual growth in the index was 4.0%, below the peak of 4.7% last year. The slowdown in construction costs is in line with the ‘new dwellings’ cost sub-component of the ABS CPI figures, suggesting a possible easing of inflationary pressures. While material costs have stabilized, labor costs have increased due to higher award rates and the superannuation guarantee rate. Queensland saw the highest quarterly growth in construction costs, while other states experienced deceleration.

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If you’re interested in staying updated on the Australian housing market, feel free to reach out to us. You can also follow our Facebook page and Instagram for regular updates on new listings, market trends, statistics, and insightful information.

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