- Australian Office Spaces (Source: CBRE)
The report from CBRE suggests that Artificial Intelligence (AI) will revolutionize Australian workplaces in the next decade. AI technologies are expected to reshape office design, reduce costs, and potentially lead to shorter working weeks. It is predicted that AI will automate office layout planning, optimize workspace efficiency, lower outgoings, and accelerate the rollout of smart office buildings. The report also indicates that AI could lead to shorter commute times and working weeks, potentially encouraging higher office attendance. The role of AI in advancing driverless car technology is also highlighted.
- Rental Market (Source: CoreLogic)
The rental market in Australia is showing a shift towards larger dwellings, with rent for houses with five or more bedrooms rising by 8.7%. At the same time, there has been a slowdown in rent growth for smaller dwellings such as one-bedroom units and studios. The national median weekly rent has reached a record high of $634, indicating deteriorating affordability. The trend towards larger properties is driven by factors such as the formation of share houses and multi-generational households. The shift is more prominent in certain regions, with cities like Melbourne showing higher growth in rents for larger houses.
- House Prices (Source: Dr. Andrew Wilson)
The housing market in Australia has seen a mix of price increases and decreases, with Perth, Adelaide, and Brisbane leading in growth, while Melbourne and Sydney are underperforming. National median house prices increased by 0.4% over the July quarter, while unit prices fell by 0.2%. The market is expected to continue growing, particularly in the booming markets of Perth, Brisbane, and Adelaide. However, growth rates are not expected to match last year’s strong results. High migration levels are exacerbating housing undersupply and driving up rents, providing incentives for first-home buyers and investors. The economy remains strong, with low jobless rates and surging job growth, but the specter of higher interest rates and rising inflation looms.
- Home Value Index (Source: CoreLogic)
The housing market in Australia is experiencing a slowdown in growth, with three capitals recording value declines over the past three months. National home values rose slightly in July, but the pace of growth has slowed compared to previous years. The mid-sized capitals are bucking the trend, showing strong growth. The market is becoming more diverse, with different regions experiencing varying levels of supply and demand. Unit prices are rising faster than houses in most cities, and rental growth is slowing down. Despite constraints on new housing supply, downside risks are growing due to increasing housing affordability challenges.
- Australia’s Population (Source: Simone Alexander)
The population growth in Australia in 2023 was a record high, driven mainly by a surge in net overseas migration (NOM). The growth rate of 2.5% was the highest since the 1960s, with overseas migration playing a significant role. This increase in migration, especially among international students, also mirrors trends in other countries emerging from pandemic-related restrictions. In contrast, natural increase (births minus deaths) has been declining, with a significant drop in the number of births and an increase in deaths. Western Australia had the highest growth rate, while Tasmania experienced a modest growth and a decline in natural increase. The ABS plans to monitor NOM levels and the declining natural increase, with potential reasons including delays in birth registrations.
- CoreLogic Auction Results (Week ending 28 July 2024)
(Total Auction / Clearance Rate)
– Sydney: 721 / 68.5%
– Melbourne: 870 / 62.3%
– Brisbane: 199 / 57.3%
– Perth: 15 / 66.7%
– Canberra: 41 / 53.7%
– Adelaide: 128 / 81.3%
– Tasmania: 1 / 0%
– Combined Capitals: 1,975 / 65.1%
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