- Generational spending divide (Source: Adam Hubbard)
The latest CommBank iQ Cost of Living Insights Report reveals a growing gap in financial habits between younger and older Australians. Younger Australians aged 18-29 have reduced their spending, particularly on essential and discretionary expenses, due to rising costs like rent and groceries. Meanwhile, older Australians, especially those over 60, have increased their spending, reflecting their greater financial capacity for indulgent purchases. The report also highlights a shift towards digital-first consumption and a regional spending growth outperforming metropolitan areas. For property investors, the report suggests that generational wealth dynamics are shaping the property market, with factors such as wealthy buyers, the Bank of Mum and Dad, and young people rentvesting influencing property values into 2025.
- Housing crisis (Source: CoreLogic)
A new analysis identifies the potential to build over three million additional strata units across Australian capital cities, with nearly 1.2 million of these units located in Melbourne and 934,000 in Sydney. The sites for these units are primarily low complexity and within 2km of a train station, offering transport links and infill opportunities. The report emphasizes the need for governments to focus on strategic development near transport nodes and maximizing infill targets to address housing shortages. The analysis does not recommend high-rise apartments but instead suggests low-rise strata units, such as townhouses, duplexes, or triplexes, for more sympathetic infill development.
- Most affordable suburbs across Australian capitals (Source: Property Buzz)
A new report identified the most affordable and liveable suburbs across Sydney, Melbourne, Brisbane, and Hobart based on affordability, accessibility to amenities, and low crime rates. Granville and Merrylands in Sydney, Broadmeadows in Melbourne, and Glenorchy in Hobart were named as top picks for both houses and units. Brisbane had the highest number of affordable suburbs for units, while Hobart was the most affordable for house buyers. All identified suburbs had low crime rates and essential amenities within a 5-kilometer radius. The research considered suburbs within 20 kilometers of CBDs in Sydney, Melbourne, and Brisbane, and within 10 kilometers of Hobart’s center. Granville houses had a median price of $1,123,000 and a 6% rental yield, while units were $542,000. Melbourne’s Broadmeadows offered houses at $568,000 and units at $440,000. Brisbane’s most affordable houses were in Inala at $700,000, and Spring Hill units averaged $480,000. Hobart’s Berriedale houses averaged $517,500, and Glenorchy units were $426,000.
- Monthly CPI (Source: Sam Alaaeddin)
The Consumer Price Index (CPI) remained steady at an annual rate of 2.1% in October, but the RBA is not expected to cut interest rates soon. Homeowners can consider negotiating or refinancing their mortgages to save on interest instead of waiting for potential rate cuts. The RBA places more weight on quarterly inflation results and may require multiple good quarters before making a decision. The big four banks anticipate up to five rate cuts through 2025.
- Regional property markets (Source: Kaitlin Ezzy)
Regional property markets in Australia, particularly in Queensland and Western Australia, have outperformed capital cities with a 1.1% quarterly increase in dwelling values. The top performers include Mackay (8.3%), Geraldton (8.2%), and Townsville (6.6%), with Geraldton experiencing the strongest annual growth at 28.7%. Rents in regional areas rose 0.5% over the quarter, with Geraldton and Kalgoorlie-Boulder recording the highest annual rental yields at 28.7% and 8.8%, respectively. Sales volumes increased significantly in Geraldton (44.2%) and Gladstone (34.3%). Despite challenges such as high interest rates and affordability pressures, momentum in these leading regional markets remains strong.
- Queensland (Source: Property Buzz)
Queensland has overtaken Victoria to become the second-largest property investor market in Australia, with annual investor loan growth of 24% compared to Victoria’s 5%. The average investor loan in Queensland increased 11% year-on-year to $536,638, while Victoria’s grew 2.7% to $553,667. Queensland’s advantages include lower taxes, strong migration, affordable regional markets, and lucrative rental opportunities. The state gained 30,930 residents from interstate in the year to March 2024, while Victoria attracted just 537. Regional markets in Queensland saw rental yields rise 5-20% year-on-year, and the state’s infrastructure pipeline includes over 300 transport projects, 2032 Olympics preparations, and major developments like the Cross River Rail. South East Queensland accounts for two-thirds of all short-term rentals in the state, and Queensland is projected to have 10,338 more investor loans than Victoria by next year if current growth rates continue.
- Upgraders (Source: Property Buzz)
Upgraders have surpassed first-time home buyers as the most active residential buyers in Australia during the final quarter of 2024, according to a CBRE survey. The research also revealed that unrenovated properties and homes in secondary locations were the least popular among buyers. Upgraders and first home buyers are expected to continue dominating the market in the short term, with Perth and Adelaide experiencing the highest demand. The survey also predicted house value growth in Perth and Adelaide, and apartment value increases in Brisbane Metro, Perth, and the Gold and Sunshine Coasts. Two-thirds of valuers anticipate an increase in available housing stock over the next 12 months, primarily in Canberra and Sydney Metro. Investors, downsizers, and developers remain active, while recent overseas migrants show less market participation.
- Queensland house prices (Source: Property Buzz)
Queensland house prices remained stable during the September quarter with a median price of $772,000, while unit prices continued to surge, rising 2.79% to $627,000. Regional areas led house price growth, with some regions recording significant annual growth in unit prices. The market saw quick sales, with houses taking 21 days and units 18 days to sell. First home buyer activity remained steady, representing 19% of the market, but upgraders became the most active buyer group. Supply constraints and high construction costs continued to impact the market, with Queensland recording the largest increase in building costs over the past five years.
- CoreLogic Auction Results (Week ending 24 November 2024)
(Total Auction / Clearance Rate)
– Sydney: 994 / 59%
– Melbourne: 1,161 / 56.4%
– Brisbane: 235 / 56.2%
– Perth: 15 / 66.7%
– Canberra: 95 / 50%
– Adelaide: 140 / 57.9%
– Tasmania: NA / 0%
– Combined Capitals: 2,640 / 57.3%
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Impressive