Latest Australian Property Market Insights:
Week Ending 17th November ’23
Property Weekly Pulse with Rasti:
G’day! I’m Rasti Vaibhav, your trusty guide through the ever-changing landscape of the Australian property market. This week, as we close in on 17th November 2023, has been a standout in the world of Aussie real estate. We’ve witnessed some significant shifts that could impact your decisions, whether you’re buying, selling, or simply keeping an eye on market trends. Let’s unpack these insights and see what they hold for us.
Unwavering Strength of Property Prices Amid Rising Interest Rates
Despite the recent increase in interest rates, the Australian property market has demonstrated remarkable resilience. Here’s what the experts are saying:
●Julie Toth, Chief Economist at PEXA, suggests a likely temporary dip in prices but quickly followed by a rebound.
●Tim Lawless, Research Director at CoreLogic, echoes this sentiment, predicting a slight impact on market confidence but ruling out significant price drops.
Their perspectives highlight a robust market, one that’s adapting and holding its ground amid economic changes.
A Leap in Australian Property Values
This week’s spotlight is on the soaring valuation of Australian residential properties:
● Record-Breaking Valuation: The total value has hit an extraordinary $10.2 trillion.
● Consistent Growth: Despite some slowing down, the market has seen a 2.3% increase in dwelling values recently.
This growth trajectory offers both challenges and opportunities, especially for those navigating this competitive sector.
The Growing Appeal of Share Houses
One trend that’s reshaping the housing market is the rising popularity of share-houses:
● Increased Demand: Platforms like Flatmates.com.au report a significant 11.2% rise in new memberships, reflecting changing housing preferences.
● Economic Influences: Interest rate hikes are leading more Australians towards shared living arrangements, a shift noted by Claudia Conley, Community Manager at Flatmates.com.au.
This trend underscores the evolving nature of the housing market and the adaptability of Australians in response to economic shifts.
Record Low Vacancy Rates Indicate Market Tension
Vacancy rates are a crucial indicator of the health of the rental market, and they’ve reached a new low:
● Historic Low: Rates have plummeted to just 0.8%, particularly in cities like Adelaide and Perth.
● Need for Action: According to Dr. Nicola Powell from Domain, this signals an urgent need for increased rental properties, presenting a potential investment opportunity.
These figures highlight a market that’s tightening, increasing the demand for rental accommodations.
Varied Movements in Auction Clearance Rates
Auction clearance rates have seen notable changes:
● Recent Drop: A dip to 63.8%, influenced by factors like the Melbourne Cup festivities.
● Anticipated Rebound: CoreLogic predicts a resurgence, indicating a dynamic auction market in the near future.
Navigating the Australian property market is about understanding both the data and the human emotions that drive these changes. As your Architect of Property Wealth, I am here to help you make sense of these trends.
Interested in how these insights could shape your property journey? Let’s chat. Book a one-on-one session with me at https://getrare.com.au/ready, or join our educational workshops to explore property investment strategies at https://getrare.com.au/workshop.
Stay informed, stay ahead with Rasti Vaibhav.