http://www.homebuyershub.melbourne/

Homebuyers Hub Melbourne, Melbourne (2026)

24/08/2024

The Australian rental market has been in turmoil for the past three years, but recent data suggests a turning point. While rental markets remain tight with high rents, vacancies have eased across most capitals except Hobart and Darwin. Sydney and Brisbane, in particular, are seeing the slowest rental price growth since 2021. This stabilization, coupled with a rise in rental listings and increased investor activity, is providing some relief to renters. In Sydney, rents have even dropped by up to $150 in certain suburbs. However, regional areas are experiencing different trends, with tightening rental markets and falling vacancy rates.

Despite strong population growth and limited new housing supply, increased investor activity is helping to stabilize conditions. Nationally, new rental listings are up 12.6% year-on-year, with Perth seeing a 34% rise. However, Victoria, especially Melbourne, is not benefiting as much from this trend, with only modest increases in vacancies and slower investor activity. The state's unfriendly policies towards investors may further exacerbate rental challenges, particularly as Victoria is expected to see significant population growth in the coming years.

In contrast, regional areas are feeling the strain of heightened population flows, with vacancy rates falling and rental price growth reaccelerating. The pandemic-driven trend of moving from cities to regions is becoming entrenched, and with millennials leading the charge, regional rental markets will need more housing to accommodate growing populations.

While the worst of the rental crisis might be behind us, challenges remain, particularly in regional areas and Victoria. But with the signs of stabilization in major cities, there is hope that the rental market is moving towards a more balanced state.

15/08/2024

Australian Housing Market. What were the Trends in July 2024?
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The Australian housing market in July 2024 presented a mixed bag of trends, showcasing both growth and challenges across different regions. The national home price index recorded a modest increase of 0.08% for the month. This incremental rise indicates that while the market remains resilient, it is experiencing a period of stabilization following the significant growth observed earlier in the year.
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Capital Cities

Among the capital cities, Perth stood out as the strongest performer with a notable increase of 0.88% in home prices. This continued growth can be attributed to the ongoing demand and the relatively affordable property prices in the region, which attract both investors and first-time homebuyers.

Sydney and Brisbane also continued their upward trajectory, albeit at a slower pace. Sydney, Australia’s largest city, recorded a 0.16% increase, driven by high demand in premium suburbs and a limited supply of new listings. Brisbane followed closely with a 0.15% rise, supported by strong interstate migration and a robust rental market.

In contrast, Melbourne experienced its fourth consecutive month of price declines, with a drop of 0.05% in July. The city’s housing market has been facing headwinds, including higher interest rates and affordability concerns, which have dampened buyer enthusiasm. Adelaide and Canberra also saw slight declines, reflecting a cooling in buyer demand in these cities.
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Regional Markets - A Slowdown in Growth

While the capital cities showed varied performances, regional markets experienced a slight dip in home prices. The regional index declined by 0.03%, marking a shift from the rapid growth observed in these areas during the pandemic. The allure of regional living, which surged during COVID-19, appears to be waning as more people return to urban centers, and the cost of living in regional areas rises.
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Annual Performance Shows A Strong Market Despite Monthly Fluctuations

Despite the monthly fluctuations, the broader picture shows that the Australian housing market remains strong. Over the past year, national home prices have risen by 6.3%, underscoring the sustained demand for housing across the country. Perth again leads the pack with an impressive 7.5% annual growth, followed by Sydney and Brisbane, each recording over 6% growth year-on-year.
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Market Outlook - Cautious Optimism Ahead

Looking ahead, the Australian housing market is expected to remain stable, with modest growth in the coming months. While affordability remains a concern, particularly in Melbourne and regional areas, the overall demand for housing is likely to keep prices buoyant. Interest rate trends, economic conditions, and government policies will continue to play a significant role in shaping the market dynamics.

In conclusion, July 2024 was a month of consolidation for the Australian housing market. With varied performances across different regions, the market continues to show resilience in the face of economic challenges. Investors and homebuyers should remain vigilant and informed, as the landscape evolves in the coming months.

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29/07/2024

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐭𝐡𝐞 𝐒𝐲𝐝𝐧𝐞𝐲 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐈𝐧𝐝𝐢𝐜𝐚𝐭𝐢𝐧𝐠?

𝘛𝘩𝘦 𝘏𝘦𝘳𝘳𝘰𝘯 𝘛𝘰𝘥𝘥 𝘞𝘩𝘪𝘵𝘦 (𝘏𝘛𝘞) 𝘔𝘰𝘯𝘵𝘩 𝘪𝘯 𝘙𝘦𝘷𝘪𝘦𝘸 𝘧𝘰𝘳 𝘑𝘶𝘭𝘺 2024 𝘱𝘳𝘰𝘷𝘪𝘥𝘦𝘴 𝘢𝘯 𝘪𝘯-𝘥𝘦𝘱𝘵𝘩 𝘢𝘯𝘢𝘭𝘺𝘴𝘪𝘴 𝘰𝘧 𝘵𝘩𝘦 𝘚𝘺𝘥𝘯𝘦𝘺 𝘳𝘦𝘴𝘪𝘥𝘦𝘯𝘵𝘪𝘢𝘭 𝘱𝘳𝘰𝘱𝘦𝘳𝘵𝘺 𝘮𝘢𝘳𝘬𝘦𝘵. 𝘛𝘩𝘦 𝘳𝘦𝘱𝘰𝘳𝘵 𝘩𝘪𝘨𝘩𝘭𝘪𝘨𝘩𝘵𝘴 𝘬𝘦𝘺 𝘵𝘳𝘦𝘯𝘥𝘴, 𝘱𝘳𝘪𝘤𝘦 𝘮𝘰𝘷𝘦𝘮𝘦𝘯𝘵𝘴, 𝘢𝘯𝘥 𝘮𝘢𝘳𝘬𝘦𝘵 𝘥𝘺𝘯𝘢𝘮𝘪𝘤𝘴 𝘢𝘤𝘳𝘰𝘴𝘴 𝘷𝘢𝘳𝘪𝘰𝘶𝘴 𝘴𝘶𝘣𝘶𝘳𝘣𝘴 𝘢𝘯𝘥 𝘴𝘦𝘨𝘮𝘦𝘯𝘵𝘴 𝘸𝘪𝘵𝘩𝘪𝘯 𝘚𝘺𝘥𝘯𝘦𝘺. 𝘏𝘦𝘳𝘦'𝘴 𝘢 𝘴𝘶𝘮𝘮𝘢𝘳𝘺 𝘰𝘧 𝘵𝘩𝘦 𝘥𝘦𝘵𝘢𝘪𝘭𝘦𝘥 𝘧𝘪𝘯𝘥𝘪𝘯𝘨𝘴 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦 𝘳𝘦𝘱𝘰𝘳𝘵.
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𝐎𝐯𝐞𝐫𝐚𝐥𝐥 𝐌𝐚𝐫𝐤𝐞𝐭 𝐓𝐫𝐞𝐧𝐝𝐬

As of mid-2024, the Sydney property market has experienced one of its flattest periods in recent years. Despite initial optimism for interest rate cuts by mid-year, persistent inflation has postponed any rate reductions until at least November 2024, possibly extending into 2025. Consequently, the Sydney median house value has seen a modest increase of 2.1% year-to-date, reaching $1,441,957. The median unit value has risen by 1.7% to $848,961.
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𝐈𝐧𝐧𝐞𝐫 𝐒𝐲𝐝𝐧𝐞𝐲

The inner Sydney market reflects a nominal recovery from the declines experienced in 2022. CoreLogic data indicates a metropolitan median house price of $1,156,020 as of May 2024.

The unit market, primarily driven by investors, has had a subdued first half of the year due to high cash rates. Property listings in Sydney have increased by 21.7% compared to the previous year, providing ample choices for buyers.
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𝐖𝐞𝐬𝐭𝐞𝐫𝐧 𝐒𝐲𝐝𝐧𝐞𝐲

The past six months have been mostly positive for dwellings in the north-west suburbs, with several areas recording growth. However, the broader market is slowing from previous boom periods.

Castle Hill median prices rose by approximately 3% over six months, reaching $2,317,500. Blacktown median prices increased by 4%, now at $985,000. Penrith median prices rose by 2%, reaching $900,000.
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𝐍𝐨𝐫𝐭𝐡𝐞𝐫𝐧 𝐁𝐞𝐚𝐜𝐡𝐞𝐬

The Northern Beaches market has begun to stabilize despite challenges like fluctuating interest rates and rising living costs. Strong stock levels have helped maintain market stability.

Areas like Waitara and Hornsby have seen slight increases in median unit prices, reflecting a positive trend despite economic challenges.
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𝐍𝐨𝐫𝐭𝐡 𝐒𝐡𝐨𝐫𝐞

The prestige market on the North Shore remains buoyant, with high-quality properties achieving strong sale prices. Mosman continues to be a prime indicator of market conditions, with significant sales such as 46 The Grove, Mosman, which sold for $30 million.

The Upper North Shore has performed relatively well, with median house prices in suburbs like Wahroonga increasing by over 4.2% in the first half of the year.
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𝐄𝐚𝐬𝐭𝐞𝐫𝐧 𝐒𝐮𝐛𝐮𝐫𝐛𝐬

The eastern suburbs started the year strongly, although price growth has slowed compared to 2023. Interest rate hikes and cost-of-living pressures have strained borrowing capacity.

Areas like Bondi Beach continue to attract both owner-occupiers and tenants due to their lifestyle appeal. The median house price in Bondi Beach is $4.07 million, an 8% year-on-year increase.
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𝐒𝐨𝐮𝐭𝐡𝐞𝐫𝐧 𝐒𝐲𝐝𝐧𝐞𝐲

The Sutherland Shire and St George regions have seen median house prices decline in recent months. However, median unit prices have generally experienced steady to minor growth.

New or recently renovated properties are in high demand, while properties requiring significant work are facing longer selling periods.
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𝐓𝐇𝐄 𝐁𝐎𝐓𝐓𝐎𝐌 𝐋𝐈𝐍𝐄

The Sydney property market has displayed mixed performance across different regions and segments in the first half of 2024. While some areas have shown growth and stability, others face challenges due to economic factors such as interest rates and inflation. Investors and stakeholders should remain informed and strategic in their decision-making to navigate these dynamic market conditions effectively.

26/07/2024

𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗲 𝗔𝗕𝗦 𝗟𝗲𝗻𝗱𝗶𝗻𝗴 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿𝘀 𝘀𝗮𝘆 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗠𝗮𝗿𝗸𝗲𝘁 𝗧𝗿𝗲𝗻𝗱𝘀 𝗮𝗻𝗱 𝗕𝘂𝘆𝗲𝗿 𝗦𝗲𝗻𝘁𝗶𝗺𝗲𝗻𝘁𝘀?

The Australian Bureau of Statistics (ABS) has released the lending indicators for May 2024, presenting a detailed picture of the current state of the lending market. As a property market expert, it's essential to delve into these figures to understand the broader implications for the housing and business sectors, as well as the overall economy.
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𝗗𝗲𝘁𝗮𝗶𝗹𝗲𝗱 𝗕𝗿𝗲𝗮𝗸𝗱𝗼𝘄𝗻 𝗮𝗻𝗱 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀

𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝗟𝗼𝗮𝗻𝘀:

There was a 1.7% decrease in seasonally adjusted new loan commitments for housing. This drop can be attributed to a combination of rising interest rates and economic uncertainty, which have made potential homebuyers more cautious.

The reduction in housing loans suggests a cooling housing market. This cooling can potentially lead to a stabilization or slight decrease in housing prices, making it a favourable period for first-time homebuyers who have been priced out of the market during the previous boom periods.
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𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗙𝗶𝘅𝗲𝗱 𝗧𝗲𝗿𝗺 𝗟𝗼𝗮𝗻𝘀:

These loans saw a 0.7% decrease. This category includes loans for purposes such as personal vehicles, home renovations, and other significant expenditures.

A decline in personal fixed-term loans indicates that households may be tightening their budgets. This trend often correlates with economic caution and could lead to reduced consumer spending in the retail and service sectors.
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𝗖𝗼𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻 𝗟𝗼𝗮𝗻𝘀:

A remarkable 38.6% increase was recorded in business loans for construction. This substantial rise, although noted as a typically volatile series, indicates strong business confidence in the construction sector.

The surge in construction loans could lead to increased commercial and residential building activities, boosting employment and related industries. This growth might counterbalance the cooling housing market and support broader economic stability.
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𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗟𝗼𝗮𝗻𝘀:

New loan commitments for the business purchase of property fell by 1.8%, but showed a slight trend increase of 0.8%.

The decline suggests that businesses are cautious about investing in new properties, possibly due to uncertainties in the commercial real estate market. However, the slight upward trend indicates some underlying confidence, which could stabilize the market in the coming months.
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𝗗𝗼𝗲𝘀 𝘁𝗵𝗲 𝗰𝘂𝗿𝗿𝗲𝗻𝘁 𝗹𝗲𝗻𝗱𝗶𝗻𝗴 𝗱𝗮𝘁𝗮 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁 𝗮 𝗺𝗶𝘅𝗲𝗱 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗼𝘂𝘁𝗹𝗼𝗼𝗸?

The decline in housing loans reflects cautious consumer behavior in response to higher interest rates. This trend might lead to a gradual correction in housing prices, benefiting first-time buyers and stabilizing the market after years of rapid growth.

The reduction in personal fixed-term loans signals a conservative approach by households, likely influenced by economic uncertainties and inflationary pressures. This cautious spending behaviour could slow down economic growth if it continues over an extended period.

The significant rise in construction loans is a positive indicator for the construction industry, suggesting robust business investment and confidence. This investment is crucial for sustaining economic growth, especially if consumer spending remains subdued.

While there is evident caution in the housing and personal loan sectors, the strong performance in business construction loans offers a silver lining. Stakeholders should monitor these trends closely, as they will shape the economic landscape in the coming months.

19/07/2024

𝐒𝐓𝐑𝐀𝐓𝐄𝐆𝐈𝐂 𝐁𝐔𝐘𝐈𝐍𝐆 & 𝐒𝐄𝐋𝐋𝐈𝐍𝐆 𝐃𝐄𝐂𝐈𝐒𝐈𝐎𝐍-𝐌𝐀𝐊𝐈𝐍𝐆 : 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐀𝐮𝐬𝐭𝐫𝐚𝐥𝐢𝐚𝐧 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐂𝐲𝐜𝐥𝐞𝐬
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Understanding the cyclical nature of the Australian property market is crucial for investors aiming to maximize their returns. The market transitions through four key phases: boom, downturn, stabilization, and upturn. Each phase is influenced by various economic and political factors, and recognizing these phases can lead to more informed investment decisions.
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𝗧𝗛𝗘 𝗙𝗢𝗨𝗥 𝗣𝗛𝗔𝗦𝗘𝗦 𝗢𝗙 𝗧𝗛𝗘 𝗣𝗥𝗢𝗣𝗘𝗥𝗧𝗬 𝗖𝗬𝗖𝗟𝗘

𝗕𝗼𝗼𝗺 𝗣𝗵𝗮𝘀𝗲: The boom phase is marked by rapidly rising property prices. This surge is driven by high demand, limited supply, and favourable economic conditions such as low interest rates and high employment rates.

𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗔𝗰𝘁𝗶𝗼𝗻𝘀: This is the optimal time for selling properties. With prices peaking, sellers can achieve maximum returns. However, it's also a period of caution for buyers as purchasing at inflated prices can lead to reduced returns when the market corrects itself.
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𝗗𝗼𝘄𝗻𝘁𝘂𝗿𝗻 𝗣𝗵𝗮𝘀𝗲: The downturn phase follows a boom and is characterized by falling property prices. This decline is often a result of economic slowdowns, rising interest rates, or an oversupply in the market. Properties take longer to sell, and discounting becomes more common as sellers compete for fewer buyers.

𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗔𝗰𝘁𝗶𝗼𝗻𝘀: During this phase, it's generally advisable to avoid selling unless necessary. For buyers, this period can offer opportunities to purchase properties at lower prices, although caution is advised to ensure the market has bottomed out.
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𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗣𝗵𝗮𝘀𝗲: In the stabilization phase, property prices level off and market conditions start to balance. Economic factors such as interest rates, employment, and consumer confidence begin to stabilize, setting the stage for future growth.

𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗔𝗰𝘁𝗶𝗼𝗻𝘀: This phase is often seen as a period of strategic opportunity for investors. Buyers can purchase properties at reasonable prices without the intense competition seen in boom phases, while sellers can begin to prepare for the next upward cycle.
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𝗨𝗽𝘁𝘂𝗿𝗻 𝗣𝗵𝗮𝘀𝗲: The upturn phase is characterized by renewed confidence in the property market. Demand increases, leading to rising property prices. This phase gradually transitions into another boom as market conditions continue to improve.

𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗔𝗰𝘁𝗶𝗼𝗻𝘀: Early entry during the upturn phase can yield significant returns as property values appreciate. It's a good time for both buying and selling, depending on individual investment strategies and market positioning.
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𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗠𝗮𝗿𝗸𝗲𝘁 𝗧𝗿𝗲𝗻𝗱𝘀

As of mid-2024, the Australian property market is in an upturn phase following a brief downturn induced by interest rate hikes and economic uncertainties. Key trends include:
National Property Values: Over the past year, national property values have risen by approximately 8%. This growth is uneven across regions, with cities like Perth, Adelaide, and Brisbane experiencing significant increases in property values, while Melbourne and Hobart lag behind.

𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝘁𝗶𝗼𝗻𝘀: Perth has seen some of the highest growth rates, attributed to strong economic performance and population growth. Adelaide and Brisbane also show robust property market activity, driven by infrastructure developments and favorable economic conditions.

𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲𝘀: Recent interest rate hikes have initially dampened market enthusiasm, but the subsequent stabilization and confidence in economic recovery have fueled the current upturn phase.
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𝗜𝗠𝗣𝗢𝗥𝗧𝗔𝗡𝗖𝗘 𝗢𝗙 𝗧𝗜𝗠𝗜𝗡𝗚
Timing is crucial in property investment. Understanding and acting on the property cycle phases can significantly impact investment outcomes:

𝗕𝗼𝗼𝗺 𝗣𝗵𝗮𝘀𝗲: Ideal for selling properties at peak prices, but buyers should be cautious.

𝗗𝗼𝘄𝗻𝘁𝘂𝗿𝗻 𝗣𝗵𝗮𝘀𝗲: Opportunities for strategic buying at lower prices, though timing the market bottom is critical.

𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗣𝗵𝗮𝘀𝗲: Balanced conditions for both buyers and sellers, allowing for strategic market positioning.

𝗨𝗽𝘁𝘂𝗿𝗻 𝗣𝗵𝗮𝘀𝗲: Potential for significant returns, making it a favourable time for both buying and selling based on individual strategies.
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𝗧𝗛𝗘 𝗕𝗢𝗧𝗧𝗢𝗠 𝗟𝗜𝗡𝗘
The Australian property market cycles provide a framework for making strategic investment decisions. By understanding the characteristics of each phase and current market trends, investors can better navigate the complexities of the property market, ensuring more informed and profitable decisions.
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16/07/2024

In-Depth Analysis: CoreLogic Monthly Housing Chart Pack - July 2024
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The July 2024 CoreLogic Monthly Housing Chart provides a comprehensive analysis of Australia's residential property market, highlighting key trends, market dynamics, and future projections. This report is invaluable for investors aiming to understand current market conditions and make informed decisions.
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Rental Market Trends:

The most notable trend in this report is the slowdown in annual rental growth across Australia's major capitals. The growth rate for unit rents has significantly decelerated, dropping from 15.1% to 7.6% year-over-year. Sydney, Melbourne, and Brisbane have seen the sharpest declines, with Sydney experiencing a dramatic fall to 7.1%. Despite this slowdown, growth rates remain above historic averages, indicating ongoing, albeit reduced, demand.
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Property Values:

The report indicates that the combined value of residential real estate in Australia has reached $10.8 trillion. However, the pace of quarterly growth has started to ease, with a 1.8% increase in the June quarter, down from 3.3% in the same period last year. Notably, Perth has seen a 6.4% rise in home values, while Melbourne recorded a slight decline of 0.6%.
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Sales and Listings Volumes:

Sales volumes have increased by 8.6% compared to the previous year, with 37,148 sales recorded in June alone. The time it takes to sell a property has generally increased, though Perth, Brisbane, and Adelaide have bucked this trend with faster sales times. Vendor discounting has decreased nationally but deepened in capital cities, reflecting varied market conditions.
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Auction and Lending Trends:

Auction clearance rates have slightly declined, with the combined capital cities averaging a 64.2% clearance rate in June. Additionally, new housing lending has decreased by 1.7% in May, with a notable shift towards investment lending, which now accounts for 37.1% of new loans, the highest since May 2017.
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Construction and Approval Data:

Dwelling approvals saw a significant 5.5% increase in May, driven by a 14.2% rise in unit approvals. Although these figures are below historical averages, they suggest a potential recovery from the trough experienced earlier in 2024.
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The Bottom Line:

The July 2024 report paints a complex picture of the Australian property market, with slowing rental growth, varied property value changes, and evolving sales dynamics. Understanding these trends is crucial for stakeholders aiming to navigate the market effectively.
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Read the full report here - https://www.corelogic.com.au/news-research/news/2024/monthly-housing-chart-pack-july-2024

16/07/2024

The Changing Unit Markets of Australia's Top Three CBDs and What it Means for The Residential Unit Markets 🏙️
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At the height of the pandemic, Australia’s largest CBDs resembled ghost towns. Today, even as activity picks up, the hybrid working culture has become the norm. The reduced demand for office space has even resulted in some buildings being remodelled into apartment blocks, adding to the existing stock from the current apartment construction projects.

We have delved into the current state of residential unit markets in the hearts of our largest CBDs. Are they worthy of investor attention, or should they be passed over for other opportunities? Here’s an analysis based on triangulated data from several data sources.
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Sydney CBD 🏙️
Median Unit Price: $796,000 (1BR)
Average Rental Yields: 7.1%
Market Condition: Buyer’s market with prices experiencing a gentle decline.

Sydney's CBD market currently appears to be a buyer’s market, with prices experiencing a gentle decline. These conditions are expected to remain stable with minimal change over the next 6 to 12 months. For investors, this means it might be a good time to negotiate favourable deals but expect stable rental yields rather than significant capital gains in the short term.
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Melbourne CBD 🏙️
Median Unit Price: $493,000 (1BR)
Average Rental Yields: 7.97%
Market Condition: Neutral, expected to shift to a buyer’s market in 6 to 12 months.

Melbourne’s CBD offers a more affordable entry point, with a median unit price of $493,000 for a 1BR unit. Rental yields are attractive at 7.97%. Currently, the market appears to be in a neutral state, with prices neither rising nor falling significantly. However, it is expected to transition to a buyer’s market within the next 6 to 12 months, indicating potential for slight price drops.
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Brisbane CBD 🏙️
Median Unit Price: $569,000 (1BR)
Average Rental Yields: 5.57%
Market Condition: Seller’s market, expected to shift to neutral within the next 12 to 18 months.

Brisbane’s CBD is currently experiencing seller’s conditions, with prices rising by up to 9% per annum and rental yields at 5.57%. We expect these conditions to shift to a neutral market within the next 12 to 18 months, suggesting a potential stabilization of prices.
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Implications for Investors 💡

The data indicates that the unit markets in the eastern seaboard CBDs are cooling. This is not a signal to make hasty decisions but rather to adopt a "watch and wait" approach. The rental yields remain solid and can serve long-term investors well. However, for those seeking quick capital growth, exploring other locales might be more beneficial.
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Conclusion 📝

As always, thorough on-the-ground research and evaluation are critical before making any property investment. Consider how your next purchase aligns with your overall property portfolio objectives. The evolving landscape of these CBDs offers both challenges and opportunities for astute investors. Stay informed and strategic in your decisions to navigate these changes successfully 🚀

15/07/2024

Surge in Profitable Property Sales Reaches 14-Year High 📈🏠

The property market is witnessing a significant upswing, with a record 94.3% of sellers achieving profits in the March 2024 quarter, marking the highest rate of profit-making sales in 14 years, according to the latest Pain and Gain report. This increase aligns with a steady rise in home values, which have climbed by 1.9% over the three months leading up to May.

Profit Trends and Median Rates 💵

Despite the higher percentage of profitable sales, the median rate of profit saw a slight decline of 1.1% during the quarter, settling at $265,000. Overall, more than 85,000 property resales amassed $28.5 billion in gross profits, down from $30.6 billion in the December quarter. This decline indicates a minor dip in the profitability per transaction despite the higher number of successful sales.

Comparison of House and Unit Sales 🏡🏢

There is a notable disparity between the profitability of house and unit sales. House sales remained more profitable, with 97.1% of transactions yielding a profit, compared to 89% for unit sales. This gap has significantly widened since March 2020, suggesting a growing preference and value retention in standalone houses over units.

Regional Performance 🌏

The regional breakdown of the report reveals that Brisbane and Adelaide led the way with the highest levels of profit-making resales, both at 98.4%. They were closely followed by the ACT (95.6%), Hobart (94.1%), Perth (93.6%), Sydney (91.6%), Melbourne (90.8%), and Darwin (71.3%).

Within regional markets, specific areas stood out for their exceptional performance. In New South Wales, the Sutherland Shire and Blue Mountains recorded 98.2% and 98% of profitable sales, respectively. Victoria’s Yarra Ranges and Greater Dandenong achieved 97.4% and 97%, respectively, while Queensland’s Scenic Rim and Somerset saw 98.4% and 99% of sales yielding profits.

Implications and Outlook 🔍

This trend of high profit-making sales reflects a robust property market, driven by rising home values and strong buyer demand. However, the slight drop in median profit suggests a need for sellers to remain vigilant about market conditions and pricing strategies. As the market continues to evolve, understanding these dynamics will be crucial for both buyers and sellers navigating the property landscape.

~ CoreLogic Pain and Gain report June 2024 📑

23/06/2024

Australian Housing Prices Deemed "Impossibly Unaffordable"
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The Demographia International Housing Affordability Report for 2024 finds all five of Australia's largest cities have severely unaffordable housing, with Sydney, Melbourne, and Adelaide classified as "impossibly unaffordable."
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Key Findings:
• Sydney boasts the second least affordable housing globally, behind only Hong Kong.
• Melbourne ranks seventh, while Adelaide ties San Francisco for eighth.
• The report blames restrictive urban planning policies for these high costs.
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Methodology and Criticisms:
• The report uses a median multiple metric, comparing median house prices to median household income.
• Author Wendell Cox, a conservative urban policy specialist, advocates for looser restrictions on urban sprawl to increase housing supply.
• Critics point out Cox's bias and the high infrastructure costs associated with sprawl.
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The Reality:
• Australian governments prioritize densification, not sprawl, due to infrastructure affordability.
• States like New South Wales and Victoria are implementing ambitious urban development plans.
• The report suggests Australia needs to significantly increase housing construction to meet demand and improve affordability.
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While the Demographia report offers valuable insights, its solutions don't fully address the complexities of urban planning. The true path to affordability likely lies in a combination of increased construction, strategic densification, and innovative infrastructure solutions.

Full report can be accessed here -http://www.demographia.com/dhi.pdf

21/04/2024

Melbourne Off-Market Opportunity!
Brand New, Under 470K each!

We just purchased three of these for our clients this week and have a few more available.

First in best dressed!

22/12/2023

The 2023 Population Statement explores the continued recovery of Australia’s population following the COVID‑19 pandemic.

Annual population growth is forecast to increase from 1.3 per cent in 2021–22 to 2.4 per cent in 2022–23 and 1.9 per cent in 2023–24. Growth is then projected to gradually ease, reaching 1.2 per cent by 2033–34.

Australia’s estimated resident population is expected to grow from 26 million on 30 June 2022 to 30.9 million by 30 June 2034.

Net overseas migration has continued to recover from record low levels observed during the COVID‑19 pandemic, primarily driven by a recovery in international students and other temporary migrants like working holiday makers.

Net overseas migration is forecast to return to pre‑pandemic levels from 2024–25, as pandemic‑related factors wane and policy directions identified in the Migration Strategy take effect.

States and territories are projected to return to well‑established population growth patterns experienced pre‑pandemic.

Capital cities and regional areas are likewise projected to return to familiar patterns of population growth in the coming years and return to their long-run population trends by 2025–26.

~ 2023 Population Statement www.population.gov.au

30/07/2023

🏡🌏 Property-Buying Rules in Australia for Foreign Nationals! 🌏🏡

Curious about how non-PR/non-citizens can purchase residential and commercial properties in Australia?

👉👉 Check out the little explainer table below that outlines the governing framework and rules. 👇👇

*Only some exemptions are included in this table; for details of all exempt persons and actions, please refer to FIRB’s Guidance Note 4 (Residential Real Estate – Exemptions)
*As defined under subsection 35(1) of the Foreign Acquisitions and Takeovers Regulation 2015
*Except for infrastructure as defined under subsection 31(2) of the Foreign Acquisitions and Takeovers Regulation 2015
*As long as the foreign person is not in a position to influence or participate in the central management of the land entity, or influence, participate in or determine the policy of the land entity

More details can be found here - https://firb.gov.au/about-firb/news/changes-foreign-investment-framework-0

Homebuyers Hub Melbourne

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