- Home price index (Source: Proptrack)
The Proptrack report indicates that national home prices reached a new high in October, with a 0.26% increase over the month and a 5.62% rise compared to a year ago. While the combined capital cities saw a 5.85% yearly increase, there was mixed performance across different cities. Melbourne experienced a 0.49% increase in October, leading the capitals in growth, followed by Adelaide and Perth. Regional areas also saw a 0.20% rise in October but with diverse performance. The report highlights the resilience of housing demand despite affordability constraints and high interest rates. The increase in properties for sale has provided more choices for buyers, but affordability concerns and sustained high interest rates have contributed to a slower price growth. Capital city prices continued to outpace regional areas, with varied performance. Despite challenges, strong demand fundamentals and limited supply may continue to support price growth.
- Cash rate Report (Source: RBA)
The Reserve Bank of Australia (RBA) has decided to maintain the cash rate at 4.35 per cent, citing easing inflation but also noting underlying price pressures and a resilient labor market. Economists believe that rate cuts may occur in 2025 due to slowing employment and inflation, but the current hold is not expected to significantly impact the property market ahead of Christmas. Despite some pressure on household budgets, buyer demand is expected to remain consistent, with a slight increase in property listings anticipated in the lead-up to the end of the year.
- Rental market (Source: CoreLogic)
The national rents increased by 0.2% in October, a modest improvement compared to previous months but lower than the average rise of 0.7% seen in the past three years. Annual rental growth has slowed to 5.8%, the smallest increase since April 2021, which is a positive signal for inflation. The slowdown in rental growth is attributed to factors such as a decrease in rental demand due to the pandemic’s effects wearing off, a slowdown in net overseas migration, and an increase in average household sizes. Commonwealth Rental Assistance (CRA) has likely affected rent growth, and weaker rental trends in the unit sector have also contributed to the slowdown. As rental growth eases, gross rental yields are under pressure, but despite this, investing in housing remains popular. The increase in investor-related mortgage activity is more than double the increase in owner-occupier lending.
- Queensland rental crisis (Source: Dr. Andrew Wilson)
The rental crisis in Queensland has worsened, with around half of the regions reporting vacancy rates below 1 percent. The statewide vacancy rate remains at a critical 1 percent, with some areas even hitting zero. This has led to challenges for the new state government and has started to impact regional employment. The Real Estate Institute of Queensland has noted a divide in the rental market, with affordable properties leasing quickly while higher-priced properties remain vacant longer. The government has pledged to deliver one million homes by 2044 to address the crisis.
- Property Sentiment Report (Source: Australian Property Investor Magazine)
The Property Sentiment Report Q3 2024 highlights a shift in the Australian property market, with changes in investor sentiment, concerns about inflation and interest rates, and a rise in the proportion of investors intending to buy in the next 12 months. The report also notes an increase in activity in the commercial property market and a preference for traditional housing assets among investors. Additionally, there is a notable shift in sentiment towards Victoria as an undervalued market, and concerns about the impact of high inflation on housing affordability.
- Detached house approvals (Source: Property Buzz)
Australian detached house approvals reached a two-year high in September 2024, increasing by 6.1%. This growth was driven by stable interest rates, strong population growth, low unemployment, and housing shortages. Melbourne had more approvals than Sydney, while regional NSW saw increased activity due to affordability. Multi-unit approvals rose, but remained at decade-low levels. Western Australia and South Australia led the way in approvals, while the Australian Capital Territory saw a decline. While building material costs and construction times have normalized, land prices in Sydney remain high.
- Total property listings (Source: SQM Research)
In October 2024, new property listings in Australia increased by 6.2%, totaling 82,458 dwellings. Nationally, the total residential property listings rose by 3.9%, with significant increases in Perth, Canberra, and Adelaide. However, distressed sales activity also rose by 3.3%, especially in Victoria, which saw a 5.6% surge in distressed listings. Asking prices showed a steady increase of 0.7%.
Older listings (properties listed for over 180 days) decreased by 1.2% nationally, indicating a reduction in long-term unsold properties. However, there were variations in different cities, with some experiencing increases and others decreases in older listings.
Regarding distressed property listings, there were significant variations across the country, with some states experiencing increases while others saw declines. This data indicates potential challenges for property owners, especially in certain markets.
Asking prices for houses and units reflected contrasting trends, with houses prices rising by 0.9% and unit prices slightly declining by 0.5%, resulting in a modest overall increase of 0.7%. There were also contrasting patterns in different cities, with some experiencing stable prices while others saw significant changes.
Overall, the data suggests a generally stable market with pockets of growth and softer demand in certain areas.
- CoreLogic Auction Results (Week ending 3 November 2024)
(Total Auction / Clearance Rate)
– Sydney: 1,036 / 57.2%
– Melbourne: 474 / 58.1%
– Brisbane: 181 / 47.5%
– Perth: 15 / 46.7%
– Canberra: 98 / 51%
– Adelaide: 168 / 58.3%
– Tasmania: NA / 0%
– Combined Capitals: 1,972 / 56.3%
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