Weekly Market Update (20 Oct 2023)

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Weekly Market Update (20 Oct 2023)
  1. Rental Market (Source: My Housing Market Report)

    The rental market in Australia’s major cities has shown some signs of easing in September, providing a small relief for tenants. While vacancy rates remain low, most capitals reported a decrease in house rents, except for Brisbane, where rents rose by 3.1%. Sydney still has the highest weekly asking rents, while Hobart remains the most affordable. House vacancy rates increased in most cities, except for Brisbane, Hobart, and Canberra. On the other hand, unit rentals improved for tenants, with only Sydney experiencing an increase in rents. Melbourne and Adelaide saw a decrease in monthly rents, while Sydney and Melbourne had significant annual increases. Unit vacancy rates increased in all capitals except for Sydney. Overall, low vacancy rates and rising rents are expected to persist in most capital city housing markets.

 

  1. Australia’s Population (Source: Robert Chandra)

    Australia is experiencing a surge in population growth due to increased migration after the COVID-19 pandemic. Experts initially predicted a slowdown in migration in 2023 and 2024, but the latest data suggests a stronger growth rate than anticipated. The population is expected to grow by 2.3% in 2023, with an estimated 475,000 people moving in. However, the pace of migration is expected to slow down in 2024 and 2025 as fewer people are projected to arrive, and more are expected to leave the country. The influx of temporary migrants, such as foreign students and New Zealanders, is contributing to the population growth. Despite the positive impact on the economy, the increased population may lead to a decrease in GDP per capita and a rise in the unemployment rate.

 

  1. Chinese Investors (Source: Brett Warren)

    Chinese investors have shown a strong appetite for Australian residential real estate in 2023, with $3.4 billion worth of purchases so far this year. This represents a 40% increase from the previous year. Chinese buyers are leading the pack, with Hong Kong, Vietnam, Taiwan, and India following behind. Additionally, over 700,000 rich Chinese property investors are expected to migrate overseas in the next two years, with Australia being the top destination. This surge in foreign investment could help alleviate Australia’s supply shortage and rental crisis.

 

  1. Downsizing (Source: Michael Yardney)

    As Australia’s population ages, more older-generation Aussies could be looking to downsize their homes, which could reshape the country’s property market. However, many Baby Boomers are choosing not to downsize and prefer to stay in their larger homes close to family and friends. Downsizing can reduce household expenses and maintenance, but it can be difficult to find suitable accommodation and may require compromising on lifestyle. The population of Australians aged 65 and over is projected to grow significantly in the coming years, contributing to the potential downsizer wave. Despite the potential benefits, Baby Boomers have various reasons for not wanting to downsize, such as wanting to stay in familiar neighborhoods, lack of suitable accommodation options, wealth preservation, supporting their children, and emotional attachment to their current homes. Downsizing can have financial benefits, less maintenance, foster togetherness and community, increase mobility and accessibility, and offer a fresh start with better location and amenities. However, there are also downsizing cons, including the costs of moving, difficulty finding suitable alternatives, potential need to move to a new location, emotional strain, and unwanted lifestyle changes.

 

  1. CoreLogic Auction Results (Week ending 15 Oct 2023)
    (Total Auction / Clearance Rate)

    – Sydney: 918 / 72.3%

    – Melbourne: 1,012 / 68.5%

    – Brisbane: 121 / 63.3%

    – Perth: 15 / 75%

    – Canberra: 98 / 67.2%

    – Adelaide: 121 / 72.3%

    – Tasmania: 1 / 100%

    – Combined Capitals: 2,286 / 69.9%

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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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