Weekly Market Update (8 Dec 2023)

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Weekly Market Update (8 Dec 2023)
  1. Breakfast Creek Green Bridge (Source: Newstead News)

    Brisbane’s new Breakfast Creek Green Bridge, a pedestrian and cyclist bridge, is set to open in early 2024. The $67 million project is 90% complete, with significant progress made on the bridge infrastructure and surrounding facilities. The bridge will provide a vital link between Brisbane’s inner city and northern suburbs, crossing the Brisbane River. Unlike other proposed green bridges, this project remains on budget and is ready for public use. The bridge features dedicated paths for walking and biking, offering scenic views of Newstead House and the river. It will seamlessly connect to the existing Lores Bonney Riverwalk and include green spaces and amenities. The bridge’s Newstead Park landing will connect to the Olympic Athletes Village for the 2032 Olympic Games in Brisbane.

 

  1. Home Value Index (Source: CoreLogic)

    According to CoreLogic’s national Home Value Index (HVI), housing values in Australia rose by 0.6% in November, the smallest monthly gain since February. Despite the slowdown, the HVI reached a new record high. While some cities like Melbourne, Hobart, and Darwin saw a decline in values, others like Perth, Brisbane, and Adelaide experienced rapid growth. This imbalance between supply and demand is keeping upward pressure on housing values in certain markets. Slower growth conditions are seen in the upper quartile of Sydney and Melbourne, while the middle of the market is experiencing the strongest rate of growth. The gap between regional and capital city growth rates has converged, with both recording a 0.6% rise in November. Regional Australia’s housing values remain below the historic high, with Regional Victoria and Regional NSW having the largest shortfall.

 

  1. National Vacancy Rate (Source: Domain Research)

    Australia’s national vacancy rate remains at a record low of 0.8% for the third consecutive month. While the rental market is competitive for tenants, there are slight improvements in some capital cities. Notably, Perth and Adelaide have steady vacancy rates, while Sydney and Adelaide are close to all-time lows. However, vacancy rates have increased in cities like Sydney, Melbourne, Brisbane, and Darwin. The demand for rental properties is outstripping supply, leading to a highly competitive market. Increased investor activity and development are needed to boost rental stock. The upcoming changeover period is expected to be the most competitive on record. Sydney, Melbourne, and Brisbane have seen slight increases in vacancy rates, while Perth and Adelaide remain the most competitive cities for tenants. Hobart has experienced a significant drop in vacancy rates, while Canberra’s vacancy rate has fallen to its lowest level in a year.

 

  1. National Home Price Index (Source: Proptrack)

    Home prices in Australia have remained resilient despite higher interest rates, with prices nationally higher than they were a year ago. In November, national home prices increased by 0.22%, setting another record but at a slower pace of growth due to more properties coming to the market. Sydney prices continued to push to fresh record highs, rising for twelve straight months. Perth saw the strongest home price growth in November, followed by Adelaide, Sydney, and Canberra. Brisbane home prices have regained all of 2022’s price falls. Regional areas saw slower growth than capital cities. Despite higher interest rates, strong housing demand, supported by increased migration, low rental availability, low unemployment, and recent home equity gains, has balanced out the impact. Limited housing supply relative to demand is offsetting the impact of interest rate tightening. Looking ahead, while there is a risk of further interest rate rises, they are close to their peak and population growth is expected to rebound strongly. Housing demand, a slowdown in the completion of new homes, and challenging rental market conditions are expected to contribute to continued price growth, although at a slower pace in 2024.

 

  1. CoreLogic Auction Results (Week ending 3 Dec 2023)
    (Total Auction / Clearance Rate)

    – Sydney: 1,081 / 62.5%

    – Melbourne: 1,375 / 58.4%

    – Brisbane: 179 / 64.3%

    – Perth: 17 / 43.8%

    – Canberra: 119 / 52.9%

    – Adelaide: 190 / 71.1%

    – Tasmania: 2 / 0%

    – Combined Capitals: 2,963 / 60.7%

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