Property Weekly Pulse with Rasti:
Week Ending 12 Apr ’24
As the Australian property market continues to evolve, navigating its complexities has become more critical than ever. With the week ending 12 April ’24 bringing fresh insights, it’s crucial to stay informed about where the market stands today. In this comprehensive overview, we delve into the regions ripe for investment, the readiness of buyers to jump into the fray, how property continues to be a cornerstone of wealth, and the new initiatives supporting housing supply.
Top Regions For Investment
Despite the challenges posed by the pandemic, regional Australia stands out as a beacon for property investors. PRD Real Estate’s latest “Roaring Regions” report highlights the enduring appeal of towns across Queensland, NSW, Victoria, and Tasmania, with factors such as:
● Affordability
● High rental yields
● Low vacancy rates
Dr. Diaswati Mardiasmo, the chief economist at PRD Real Estate, emphasises that regional areas often outperform their metropolitan counterparts, offering equal or stronger capital growth. Notably, Local Government Areas like Mackay, Toowoomba, Townsville, Dubbo, Tamworth, Griffith, Ballarat, Shepparton, Wodonga, and Burnie shine as prime investment spots, with median house prices under $600,000.
Buyers Getting Ready
The market is witnessing a surge in buyer activity, a testament to the growing interest in Australian real estate:
● Loan Market reports a significant increase in pre-approval applications, with 1117 pre-approvals noted last month.
● The auction clearance rate hit 76% nationally, the highest since early February 2024, indicating a robust return of buyers post-Easter.
Cities like Sydney and regions like Ryde, NSW, demonstrate exceptional performance, highlighting a nationwide trend towards market engagement.
Property Increases Our Wealth
Property continues to play a pivotal role in enhancing household wealth. The Australian Bureau of Statistics (ABS) reports a 2.8% increase in household wealth during the December 2023 quarter, driven largely by:
● The rise in residential land and dwelling values
● Contributions from domestic and overseas share markets
This upswing has pushed Australia’s household wealth to an extraordinary $15.7 trillion. According to Mish Tan, head of finance statistics at ABS, these trends underscore the resilience and growth potential of the property sector.
Supply Support Starts
Addressing supply challenges is critical for sustaining the market’s momentum. The Federal Government’s $500 million Housing Support Program aims to expedite the planning and construction process. Mike Zorbas, Chief Executive of the Property Council of Australia, advocates for the program as a vital measure to combat decades of undersupply and enhance affordability for all Australians.
In sum, the Australian property market presents a mixed bag of challenges and opportunities. From the allure of regional investments to the burgeoning market readiness of buyers, alongside significant wealth growth and strategic supply support, the landscape is ripe for exploration and investment.
I’m Rasti Vaibhav, The Architect of Property Wealth.
