- House prices (Source: Domain)
The Domain House Price Report reveals that annual property price growth has slowed to the lowest levels since September 2023, with house prices extending their growth streak to eight consecutive quarters and unit prices reaching seven. However, changing market dynamics, including weakened demand, the possibility of cash rate cuts, and increased supply, are expected to create a buyer’s market in 2025. Key cities, such as Brisbane, Adelaide, and Perth, have set new record highs for house and unit prices, while Sydney house prices declined for the second consecutive quarter. The autumn selling season is expected to bring opportunities for buyers as the market shifts towards a buyer’s market.
- Macquarie Bank (Source: Smart Property Investment)
Macquarie Bank has reduced its fixed-rate mortgages by up to 0.16 percentage points, making its lowest fixed rate 5.55 percent. This move comes before the Reserve Bank of Australia’s cash rate decision on February 18, potentially escalating competition in the fixed-rate market. Despite Macquarie Bank’s competitive fixed rate, borrowers are likely waiting for the RBA’s meeting before making a move on their mortgages.
- Queensland property boom (Source: API Magazine)
The regional property market in Queensland, particularly in towns like Townsville and Rockhampton, is experiencing a significant boom as buyers are priced out of Brisbane, Melbourne, and Sydney. Home values in Townsville have surged 27.2% in the past year, while in Central Queensland’s Gladstone, prices have soared 27.1%. The affordability of these regions is driving the growth, with experts predicting that the market will continue to thrive despite some signs of slowing in other areas. Melbourne and Sydney buyers are the most active in the market.
- Australian unemployment (Source: API Magazine)
The Australian unemployment rate rose to 4.0% in December from 3.9% in November, with 56,000 jobs added to the economy during the same period. However, the Reserve Bank of Australia’s next interest rate decision on February 18 is uncertain due to the low unemployment rate and potential inflation pressures. Economists have mixed views on the likelihood of a rate cut, with some predicting a 68% probability and others believing it’s unlikely. The RBA has maintained its inflation forecast, indicating that price pressures won’t fall significantly within the target band until 2026. The labour market’s resilience and low unemployment rate suggest the RBA is unlikely to feel an urgency to loosen policy settings.
- Rent price growth (Source: Smart Property Investment)
Rent price growth slowed down in the last quarter of 2024, with only Brisbane and the ACT showing growth in the month of December. The median weekly rental growth dropped to 1.6% nationwide, reaching $620. Rental market conditions have favored tenants due to an increase in available rentals and cost-of-living pressures. The report showed that Brisbane and Canberra were the only two capital cities to see rents increase, while Adelaide and Perth had the strongest increases in rents over the past year. Rental prices are expected to continue rising moderately in 2025.
- Construction costs (Source: CoreLogic)
Construction costs in Australia increased by 3.4% in 2024, marking the largest annual rise since 2023, according to CoreLogic’s Cordell Construction Cost Index. Queensland experienced the largest quarterly increase, with costs rising by 1.2%. The construction industry is already facing profitability challenges, and the increase in costs will further impact builders on tight margins. The latest data also shows that construction sector job vacancies have increased by 33.5% from pre-COVID levels, putting additional pressure on the industry. Additionally, the construction pipeline may be declining, with building approvals over the 12 months to November remaining below the decade average.
- Brisbane Olympic Games’ design (Source: Smart Property Investment)
The Royal Australian Institute of Architects, Australian Institute of Landscape Architects, Planning Institute of Australia, and Design Institute of Australia have submitted a proposal for essential design and planning strategies for the upcoming Brisbane 2032 Olympic and Paralympic Games. The goal is to ensure long-term property investment and market growth support by implementing sustainable infrastructure and a holistic approach to venue planning. The submission emphasizes the importance of early design integration, green grid strategy, and precinct-based planning. The benefits include attracting new residents and businesses, enhancing economic benefits, and fostering vibrant, prosperous communities. The proposal draws on the success stories of London 2012 and Barcelona 1992 Games in urban renewal and infrastructure development.
- National new listings (Source: Smart Property Investment)
The REA Listings Report for December 2024 revealed that despite a 50.6% decrease in new listings compared to the previous month, the total number of new listings for the year was at its highest since 2021. New listings in capital cities, such as Sydney, Melbourne, and Brisbane, experienced the steepest declines, but the market remained resilient with an increase in days on market. The report also showed that total listing volumes increased by 6.7% in 2024 compared to the previous year, with the largest growth in Canberra and Sydney. Price growth is expected to continue moderating in 2025.
- CoreLogic Auction Results (Week ending 19 January 2025)
(Total Auction / Clearance Rate)
– Sydney: 55 / 52.7%
– Melbourne: 132 / 63.1%
– Brisbane: 27 / 51.9%
– Perth: 1 / 0%
– Canberra: 10 / 80%
– Adelaide: 37 / 59.5%
– Tasmania: NA / 0%
– Combined Capitals: 262 / 59.6%
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