Weekly Market Update (24 Nov 2023)

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Weekly Market Update (24 Nov 2023)
  1. First Home Owner Grant (Source: ABC News)

    The Queensland government has announced that it will double the first home owner grant to $30,000 for new builds until mid-2025. The grant applies to buying or building a new home valued under $750,000 and can also be used for a granny flat or modular home. The move aims to help first-time buyers get into the market and alleviate the pressure of high property prices and low rental vacancies. The increase in the grant is funded by coal royalties and is seen as a “pre-Christmas bonus” for families.

    Eligibility for the first home owner grant
    https://qro.qld.gov.au/property-concessions-grants/first-home-grant/eligibility/

 

  1. National Home Value Index (Source: CoreLogic)

    The Australian housing market has rebounded from a recent downturn and has reached a new record high in home values, according to CoreLogic’s national daily Home Value Index (HVI). After a peak in April 2022, home values fell by 7.5% before hitting a floor in January 2023. Since then, values have risen by 8.1% and surpassed the previous peak. The recovery is attributed to an imbalance between supply and demand, with low inventory levels and steady demand. However, there is growing diversity in housing market conditions across different regions, with some areas still below their peak values. Although this is good news for homeowners, affordability pressures are increasing for prospective buyers.

 

  1. Regional Housing Markets (Source: CoreLogic)

    A new analysis of Australia’s regional housing markets shows that many areas have not performed as well as the capital cities over the past year. Rising interest rates, higher cost of living, and changes in migration patterns have affected the regions. While the combined capitals have reached new record highs in housing values, the combined regional market remains below its peak. Some regions, particularly in NSW and Queensland, have seen strong quarterly value growth, while regional Victoria has experienced declines. Rental growth in regional areas has also lagged behind the capitals. The coastal region of Victor Harbor – Goolwa recorded the highest increase in rents, while Bateman’s Bay in NSW saw declines. Mining and port regions had high rental yields, while expensive areas like Bowral-Mittagong had lower yields and higher vacancy rates. The outlook suggests softer housing market conditions due to rising interest rates and increased costs.

    The full Regional Market Update report can be downloaded on corelogic.com or on our website at https://www.squareqld.com.au/advice/the-real-estate-report/.

 

  1. Christoper’s Housing Boom and Bust Report 2024 (Source: SQM Research)

    According to SQM Research’s annual update, Christoper’s Housing Boom and Bust Report 2024, Sydney and Melbourne housing prices are expected to experience a moderate fall in 2024. The forecast predicts that Perth and Brisbane will be the only cities to see price rises due to a recovering Chinese economy. Factors such as rising interest rates, housing affordability issues, and a slower economy are anticipated to lead to a correction in prices in Sydney, Melbourne, Canberra, and Hobart. The report also suggests that asking rents will increase, with Perth expected to see the largest rise. However, the report notes that if migration rates do not slow as expected or if there is a second energy crisis, housing price falls could be more severe. The full report provides detailed market statistics and can be purchased on SQM Research’s website.

 

  1. Rent Forecast (Source: Leanne Jopson)

    A new report predicts that rental prices in Australian capital cities will rise by 7% to 10% next year. Perth is expected to see the largest increase of 12% to 15%, while Canberra is forecasted to experience a decline of -6% to -2%. The report attributes the rental surges to a severe mismatch between new dwellings and population growth. In the past year, capital city rents have risen by 15.2%, and national rents have increased by 9.2%. The report warns of a potential rise in homelessness and community anger if the imbalance between supply and demand continues.

 

  1. CoreLogic Auction Results (Week ending 19 Nov 2023)
    (Total Auction / Clearance Rate)

    – Sydney: 1,063 / 63.9%

    – Melbourne: 1,410 / 61.2%

    – Brisbane: 201 / 55.8%

    – Perth: 15 / 53.6%

    – Canberra: 109 / 50.5%

    – Adelaide: 187 / 76.9%

    – Tasmania: 5 / 60%

    – Combined Capitals: 2,990 / 62.4%

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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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