Weekly Market Update (5 July 2024)

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Weekly Market Update (5 July 2024)
  1. Rent Report, June Quarter (Source: Domain)

    The Australian rental market is experiencing a slowdown in rental price growth, with most capital cities showing declining or easing rental growth. This trend is attributed to a misalignment between supply and demand, with vacancy rates rising in many cities. Factors contributing to this shift include a decrease in rental demand, reduced overseas migration, and a gradual increase in rental availability. Additionally, government incentives for home ownership are influencing the rental market. The data also shows specific changes in median rents for different types of properties in major cities. Overall, the rental market is expected to continue finding balance, with the hope for a more balanced market by 2024.


  1. Queen’s Wharf (Source: Brisbane Development)

    The Queen’s Wharf development in Brisbane is set to open on August 29 after facing construction delays. The $3.6 billion project will feature a range of attractions and facilities, with more venues opening throughout September and October. The project aims to revitalize Brisbane’s CBD and nighttime economy. The development has faced challenges, including COVID-19 setbacks, but is committed to delivering exceptional guest experiences and safety standards. The project will also feature unique dining experiences, a Latin American-inspired venue called Azteca, and a significant public art offering.


  1. Household Wealth (Source: ABS)

    Household wealth in Australia increased by 2.7% ($431 billion) in the first quarter of 2024, reaching a total of $16.2 trillion, a 10.2% ($1.5 trillion) increase from the previous year. The growth was mainly driven by rising house prices, with residential land and dwellings being significant contributors. Superannuation assets and direct ownership of shares also played a role in increasing household wealth. However, growth in household deposits has slowed compared to previous years, reflecting a decline in the household saving ratio. Additionally, total demand for credit in the March quarter was $101.0 billion, with the Commonwealth Government’s net lending position influenced by the acquisition of deposit assets and issuance of Treasury bonds. The Australian Office of Financial Management has reduced the pace of new Commonwealth government debt issuance. Chris Dang, an accountant with financial planning experience, is working to help clients of Metropole Wealth Advisory create comprehensive wealth plans.


  1. SEQ Land Market (Source: Oliver Hume)

    The land market in Southeast Queensland is experiencing a strong recovery, with a surge of new supply entering the market. The market is particularly busy, with over 80 new homesites being released in various projects. There is high demand from first home buyers looking to leave the rental market and from second home buyers aiming to upgrade. Despite concerns about building prices, buyers are focusing on build-ready sites, with Ipswich reclaiming its position as the most affordable area for new land buyers. Prices in Ipswich have dipped slightly, making it more affordable than Logan, which had previously held the title for best value land.


  1. CPI (Source: ABS)

    The latest ABS data shows that the Consumer Price Index (CPI) has risen by 4.0% in the twelve months to May 2024, indicating a notable increase from previous months.


  1. Property Market Outlook (Source: PropTrack)

    The PropTrack Property Market Outlook Report June 2024 by REA Group analyzes the Australian residential property market and predicts a 2% to 5% increase in property prices in the 2024-25 financial year. Perth is expected to lead this growth with an 8% to 11% increase. Other major cities like Brisbane, Sydney, Melbourne, and Adelaide are also projected to experience significant price growth. Despite high-interest rates, buyer demand remains strong, leading to faster-than-expected price rises. The report also notes a national increase in sales volumes and a drop in the median time a property listing remains on the market.


  1. Australian Housing Market (Source: CoreLogic)

    The Australian housing market saw a strong 8.0% growth in dwelling values during the fiscal year 2023-24, with a $59,000 increase in median dwelling value to $794,000. Despite some regional variations, most areas experienced an increase in value, especially mid-sized capitals like Perth and Adelaide. The market has shown resilience despite challenges such as high rates, cost of living pressures, and tight credit policies, with supply shortages contributing to the upward pressure on values. Strong demand, interstate migration, and increased home sales also indicate the market’s robustness.


  1. Australian Housing Market (Source: Dr. Andrew Wilson)

    The housing market in most capital cities saw rising home prices in the June quarter, with Perth, Adelaide, and Brisbane performing particularly well. However, Sydney and Melbourne experienced stagnant or declining prices. Unit prices also generally increased, with Perth, Brisbane, and Adelaide leading the way. Overall, the housing market is expected to continue to grow, but at a slower rate than in the past year. Factors such as high migration, low jobless rates, and rising rents are driving market activity.


  1. Home Price Index (Source: PropTrack)

    National home prices reached a new peak in June, but growth has slowed down. Prices are up overall and there has been an increase in demand for homes due to low supply and high population growth. People are willing to pay higher prices for homes and this trend is expected to continue. Interest rates and inflation may affect the market, but prices are still expected to rise. Some cities are seeing faster growth than others.


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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