Tags :AustraliaBusinessEconomicshousingPROPERTYReal estate
CoreLogic’s Hedonic Home Value Index saw a 0.7% price increase for March. This was mainly due the stronger conditions in Brisbane, Adelaide, Perth, and ACT.
On a national basis, the median value of an Aussie property – which includes both freestanding homes and units – is now $738,975.
Even though smaller cities may still be benefiting from the country’s property boom and are enjoying the benefits, the largest markets in Sydney or Melbourne are experiencing the steepest declines of their growth.
Sydney saw the greatest drop with a peak rate at 9.3% price growth in the three months preceding May 2021, falling to just 0.3% in the first quarter. Melbourne was similar – retreating from 5.8 per cent in April last year to just 0.1 per cent this year.
Regardless of the falls, you’ll still need a lot of money to buy a typical property in one of these cities. The median value in Sydney is just under $1.1 Million, while Melbourne’s is just over $850,000.
CoreLogic’s Research director Tim Lawless claimed there is increasing evidence of slowing price growth.
Mr Lawless stated, “Almost every capital city and major region in the rest-of state reached a peak of its trend rate growth sometime last or earlier.”
“The most severe slowdown occurred in Sydney, the city with the highest housing costs. The Listed Supply is trending higher and sales activity has fallen over the past year.
“There are exceptions to this slowdown. The March quarter saw a new peak in the cyclical cycle in regional South Australia. Some momentum is returning in Perth market, where the rate for growth is trending higher that before WA reopened.
Godfrey Dinh CEO of fintech company Futurerent said that he expected expanded programs to be announced in this week’s Federal Budget in order to boost growth in more affordable markets.
“In the past two years, we have seen positive effects that support measures for first-home buyers had on buyers as well as the wider housing market. Mr Dinh stated that the boosted program will almost certainly boost demand and housing value in areas that are affordable to first-home owners in the short-to-medium-term.
“Properties located within the most desirable areas for first-home buyers are most affected by an increase of demand in these less costly markets.
This could increase the demand for units. They are becoming more popular among first-home buyers than with investors as they are less expensive than houses.
CoreLogic stated that although certain cities are experiencing rapid growth, the outlook for housing remains negative.
Mr Lawless stated, “Australia’s two largest cities are Sydney and Melbourne. However, Brisbane and Adelaide continue their quarterly growth rate of over 20%.”
“Perth is also reaccelerating from a low foundation. This can be attributable at least partially to the reopening of state borders and the strength of regional markets as low supply is hindered by high population growth.
There are many factors that affect the property market.
Australia’s median property values*
|Capital City||2022 is the Year of Change||Median Value|
|Sydney||+ 0.3 per cent||$1,116,889|
|Melbourne||+ 0.1 per cent||$805,232|
|Brisbane||+ 6.4 per cent||$749,293|
|Adelaide||+ 5.7 per cent||$602,717|
|Perth||+ 1.9 per cent||$542,338|
|Hobart||+ 2.7 per cent||$731,849|
|Darwin||+ 1.7 per cent||$494,635|
|Canberra||+ 3.1 per cent||$932,704|
|National||+ 2.4 per cent||$738,975|
*CoreLogic Hedonic Home Value Index. Results as of 31/03/2022
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