Weekly Market Update (24 May 2024)

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Weekly Market Update (24 May 2024)
  1. Australian Economic And Financial Markets Update (Source: Domain)

    Domain has released its second annual Sustainability in Property Report, which highlights the growing demand for green homes. The report reveals that energy-efficient homes spend 4% fewer days on the market and receive over 16% more views compared to non-energy-efficient homes. Surprisingly, middle-income households are leading the charge in embracing energy-efficient features, driving the demand for green homes. This trend is unexpected as one might anticipate higher-income areas to lead in this regard. The report also provides a list of suburbs where energy-efficient homes are cheaper than non-energy-efficient homes, aiming to inspire more sustainable choices without overlooking affordability. The data shows a significant surge in demand for sustainable properties, promising to reshape the housing market and contribute to reducing Australia’s carbon emissions.


  1. Short-term Rentals (Source: SPI)

    Locations with less stringent local regulations, such as Perth and Brisbane, offer the best opportunities for short-term rental investors in Australia. Increasing regulations in southern states like Victoria and Byron Bay have made it less profitable for owners to run an Airbnb, leading to a dampened growth in those areas. Short-term rental properties have positively impacted the tourism economy and local labor market by providing accommodation options and job opportunities, particularly in areas with low regulations.


  1. Property Vendor & Buyer Activities (Source: Tim Lawless)

    The real estate market has seen an increase in new listings, with most regions showing higher vendor activity compared to a year ago, except for Hobart. Melbourne and Regional Victoria have experienced the largest jump in vendor activity. However, areas with elevated stock levels, such as Melbourne and Hobart, have seen softer value growth. Conversely, some markets in WA, SA, and Queensland have extremely low stock levels, leading to high competition and value gains. The increase in vendor activity can be attributed to factors like the previous dearth of listings, rising financial pressure, and homeowners looking to de-risk their assets. Despite the higher-than-average trend in new listings, the total number of homes advertised for sale is holding relatively flat nationally. Notably, rural areas of Queensland, South Australia, and Western Australia have seen the most significant drops in total listings relative to the previous five-year average, while capital city regions such as Kwinana and Beaudesert also exhibited a decrease in listings.


  1. Land Shortage (Source: Juliet Helmke)

    The Housing Industry Association (HIA) has identified land supply as the top constraint on home building, with land prices rising due to a modest recovery in sales. Brisbane, Adelaide, and Perth are popular markets for home builders, while Sydney, Melbourne, and Hobart lag behind. The availability of land is expected to continue hindering housing supply, with higher interest rates and low land supply leading to a 12.8% decrease in annual dwelling approvals. The HIA is urging governments to bring shovel-ready land to the market to address the shortage of greenfield and infill land.


  1. Overseas Search Report (Source: Orana Durney-Benson)

    The PropTrack Overseas Search Report for May 2024 indicates a decline in overseas rental searches compared to last year, with only the UK, New Zealand, and China seeing increases. The drop is attributed to policy changes affecting international students and visa approvals. Analysts warn that if Australia continues with stricter immigration policies, overseas interest in rentals may further decline. However, overseas property searches have increased slightly, with the Gold Coast in Queensland being the most popular destination.


  1. CoreLogic Auction Results (Week ending 19 May 2024)
    (Total Auction / Clearance Rate)

    – Sydney: 725 / 67.7%

    – Melbourne: 1,009 / 62.6%

    – Brisbane: 178 / 60.1%

    – Perth: 6 / 66.7%

    – Canberra: 72 / 56.9%

    – Adelaide: 156 / 82.7%

    – Tasmania: NA / 0%

    – Combined Capitals: 2,146 / 65.4%


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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