- Regional value growth (Source: Kaitlin Ezzy)
Regional property markets are experiencing a slowdown in value growth due to affordability constraints, normalising listing levels, and elevated interest rates. Dwelling values in regional markets increased by 1.3% compared to 1.8% in capital cities, with Queensland leading the quarter. However, 14 regional New South Wales markets and six regional Victoria markets saw declines. Rental growth across regions is also losing momentum. Affordability remains a significant issue, with dwelling values and rents on the rise. Kaytlin, a research analyst at CoreLogic, specializes in data collation and residential reports.
- Short-term rentals (Source: Orana Durney-Benson)
The cost-of-living crisis in Australia has led to a decrease in spending on holiday accommodation, with average prices for Airbnb and short-term rentals dropping compared to the previous year. The managing director of Bodhi Tree Group attributes this to families seeking cheaper options due to the cost of living. Regulatory pressures and economic challenges are further impacting property owners in the short-term rental industry, leading to criticism of recent legislative changes.
- Migration between capital cities (Source: Sebastian Holloman)
Migration between capital cities cools to pre-pandemic levels. Melbourne experienced the biggest increase in inbound migration in the first half of 2024, marking the city’s first positive net migration since the COVID-19 pandemic. Brisbane’s outbound moving enquiries reached a record high due to increasing cost of living, impacting the city’s appeal. Sydney saw a moderate increase in inbound traffic but continued to have negative net migration due to high outbound movement.
- Gold Coast house prices (Source: Ray White Surfers Paradise Group)
The Gold Coast has become Australia’s second most expensive housing market with a median house price of $1.17 million, projected to reach $1.7 million by 2027. Factors contributing to this property boom include increased interstate migration, appeal as a luxury destination, rise in renovation and investment activity, and improved housing quality. The city has experienced a population surge partly due to people seeking refuge from COVID-19 restrictions in major cities. The market has fully recovered post-pandemic and is experiencing strong price growth. The Gold Coast is seen as a world-class city with increasing appeal as both a lifestyle destination and a sound investment opportunity.
- Consumer price index (Source: Sam Alaaeddin)
The Australian Bureau of Statistics released the July Consumer Price Index (CPI) data, showing a 3.5% monthly CPI indicator in the 12 months to July 2024, a decrease from the previous month. Significant price rises were seen in housing, food, alcohol and tobacco, and transport. The annual trimmed mean inflation also decreased to 3.8% in July. While inflation is moving in the right direction, Governor Bullock believes it is premature to consider rate cuts. The Reserve Bank’s ‘wait-and-see’ strategy is backed by the decreasing trimmed mean inflation. However, borrowers are advised to ensure they have competitive mortgage rates. The potential impact of cash rate cuts from the big four banks could affect households with mortgages.
- Australian real estate market (Source: CoreLogic)
2021 was the most common year for property sales, with around 549,000 homes sold. Home values increased by 7.6% nationally since 2021, but those who bought a year later saw almost double the capital growth returns. Despite the surge in mortgage rates, buyers in 2024 may not see strong short-term capital growth returns, but mortgage serviceability is expected to improve over time.
- New minimum rental standards in QLD (Source: Juliet Helmke)
The state of Queensland has introduced new guidelines for rental properties to ensure they are fit for habitation. These guidelines include standards for weatherproofing, structural soundness, fixtures and fittings, privacy coverings, and more. The Real Estate Institute of Queensland (REIQ) supports these standards, emphasizing the importance of tenant safety and communication between property owners and tenants. The new regulations will apply to all rental properties from 1 September 2024, and property managers have been educated to ensure compliance.
Starting from 1 September 2024, all rentals in the state must:
– Be weatherproof and structurally sound.
– Contain fixtures and fittings that are in good repair and not likely to cause injury to a person.
– Have locks on windows and doors.
– Be free of vermin, damp and mould.
– Contain privacy coverings.
– Have adequate plumbing and drainage.
– Contain a functioning kitchen and laundry facilities (where supplied).
- CoreLogic Auction Results (Week ending 25 August 2024)
(Total Auction / Clearance Rate)
– Sydney: 816 / 66.8%
– Melbourne: 938 / 61.7%
– Brisbane: 137 / 60.6%
– Perth: 11 / 60%
– Canberra: 65 / 53.9%
– Adelaide: 150 / 79.7%
– Tasmania: 1 / 100%
– Combined Capitals: 2,118 / 64.6%
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