Latest Australian Property Market Insights:
Week Ending 1st Dec ’23
G’day, property enthusiasts!
This week, let’s unravel the latest twists and turns in the Aussie property market. We’ve got everything from apartment construction trends to the subtle shifts in buying vs renting. Sit back, as we decode the complexities of real estate, offering you the freshest insights from the week ending 01 December ’23.
H2: Apartment Construction Slows Down – What’s Happening?
First up, let’s look at the apartment sector. According to JLL’s Q3 Apartment Market Overview, there’s been a noticeable 8% slowdown in construction pace over the past year. This shift isn’t just a number; it reflects real-world challenges such as staffing difficulties and a strategic move by builders towards large-scale infrastructure projects. Leigh Warner, JLL’s senior research director, sheds light on the situation:
Apartment marketing dipped by 30%.
Shift towards build-to-rent projects, growing by 80%.
H2: Home Values Soar Despite Economic Shifts
In a surprising twist, the housing market defied the November interest rate hikes, with CoreLogic reporting an 8.1% increase in home values from previous lows. It’s a double-edged sword, though:
Great for current homeowners.
Rising affordability concerns for potential buyers.
Tim Lawless, CoreLogic’s research director, expresses concern over these trends impacting buyer sentiment, especially as we head into 2024.
H2: Buying vs Renting – The Changing Landscape
Here’s an interesting development from PropTrack: in over a third of Australian homes, it’s now cheaper to buy than to rent. The stats are particularly striking in Queensland, Tasmania, and Western Australia:
In Western Australia, over 75% of homes are cheaper to buy.
Unit markets show 55% being more affordable to buy than rent.
Paul Ryan, PropTrack’s economist, notes this as a significant opportunity for buyers, especially with rent prices skyrocketing.
H2: The Growing Challenge of Housing Affordability
The latest ANZ CoreLogic Housing Affordability Report paints a challenging picture for the upcoming year. With increasing rents and mortgage rates, the dream of homeownership is becoming more elusive, particularly for first-home buyers. Adelaide Timbrell, ANZ’s senior economist, highlights:
28.4% increase in rents since the pandemic’s start.
Harder for lower-income households to break into the market.
H2: Regional Markets – The Unsung Heroes of Real Estate
Let’s not forget the regional heroes. CoreLogic’s Regional Market Update shines a light on areas that are outperforming their metropolitan counterparts:
Bunbury, WA leading with a 4.6% increase.
Lismore, NSW and St Georges Basin, NSW showing significant
These regions are proving to be robust alternatives to the city’s hustle and bustle.
As we wrap up this week’s market analysis, it’s clear that the Australian property landscape is as dynamic as ever. From the bustling construction sites to the serene regional suburbs, each element plays a crucial role in shaping our property dreams.
I’m Rasti Vaibhav, The Architect of Property Wealth. If you’re navigating these changes and seeking guidance on property investment, I’m here to help. Book a session with me at https://getrare.com.au/ready to help you tailor a property strategy that suits your needs. Alternatively, treat yourself for Christmas read by grabbing a FREE copy of The Property Wealth Blueprint: https://thePropertyWealthBlueprint.com. Just cover the minimal shipping costs.