Tags :AustraliaConsumerhousingmoneyPROPERTYReal estate
CoreLogic’s new data indicates that there was a 1.3 percent increase in Australian property values in November, which brings the annual growth rate for Australia’s median property up to 22.2 percentage points.
When broken down, that translates to a yearly increase to the median value of $126,700 – or more than $10,558 per month.
But, it is not all doom and gloom for those who wish to enter the property market. The November 1.3% monthly growth is likely to be the beginning of a slowdown in the market. This was the lowest month-over-month growth rate since January 2021.
CoreLogic’s research chief Tim Lawless stated: “Virtually all factors that have driven home values higher have lost some potential over these past months.”
“Fixed Mortgage Rates Are Rising, Higher Listings Take Some Urgency From Buyers, Affordable Has Become a More Significant Barrier To Entry and Credit is Less Accessible.”
Brisbane and Adelaide recorded the fastest monthly growth – booming 2.9 per cent and 2.5 per cent respectively – translating into a monthly rise of $18,500 and $13,500.
Mr Lawless stated, “As domestic borders are now opened, the market is beginning to see more people leaving the larger capital cities like Sydney or Melbourne.”
Lawless stated that housing affordability was more urgent in larger cities then it is in smaller ones. Lawless also stated that there have been fewer COVID lockdowns and that interstate migration has increased housing demand.
“On the flip side, Sydney’s need has been more severely affected due to affordability pressures as well as negative migration both interstate and overseas.”
Sydney’s median dwelling value – which includes both apartments and freestanding houses – is now over $1 million following a 25.8 per cent annual increase.
With a median property value of $493,000., Darwin is the best capital for property purchases.
The table below shows a breakdown by capital cities.
Housing affordability becomes ‘challenging’
CoreLogic’s report stated that housing affordability is rapidly becoming a major concern for buyers living in larger capital cities despite many factors driving up house prices.
According to the report “Housing affordability is becoming more difficult each month.”
“With higher barriers of entry, especially if buyers don’t have equity behind their homes, it’s likely the housing supply will be gradually reduced as fewer households can afford to buy.
“The natural consequence for increasing affordability could be that there is a greater demand for affordable, high-density housing options such as townhomes and units.
Australia’s Median Dwelling Values*
|Capital City||Annual Change:||Median value|
|Sydney||+ 25.8 per cent||$1,090,276|
|Melbourne||+ 16.3 per cent||$788,484|
|Brisbane||+ 25.1 per cent||$662,199|
|Adelaide||+ 21.4 per cent||$558,179|
|Perth||+ 14.5 per cent||$528,540|
|Hobart||+ 27.7 per cent||$676,595|
|Darwin||+ 16.7 per cent||$493,047|
|Canberra||+ 24.5 per cent||$882,519|
|National||+ 22.2 per cent||$698,170|
*CoreLogic Hedonic Home Value Index November 2021. Both apartments and houses are included
Bondi Beach property sold at $1million above reserve
This website is intended to provide general information only and not to be a source or financial advice. The information was not created taking into account your financial situation, goals, and needs. Before you decide to take any action, make sure you carefully review the information.