Week Ending 3rd November ’23
Property Weekly Pulse with Rasti Vaibhav
G’day property enthusiasts!
As we wrap up the week ending 3rd November ’23, the Australian property landscape has dished out some fresh surprises. From skyrocketing rental demands in our bustling cities to the shimmering hope of affordable housing, there’s a lot to unpack. Dive in to get the latest scoop and discover how these trends might shape your next property move.
Rentals In High Demand
The Australian housing crisis seems to be intensifying. Recent data highlights a surge in online rental enquiries, especially in certain locations. A deep dive by PropTrack in September unravelled some compelling numbers:
· Perth leading with an astonishing 50.3 enquiries per listing.
· Adelaide at 40 and Melbourne at 31.4.
· Brisbane with an average of 29.1 enquiries.
However, delve deeper into the suburbs, and the narrative intensifies. Bently in Perth, for instance, saw an overwhelming 160 inquiries on their rentals listed online. Over in Adelaide, Para Hills West was a hotbed of activity with approximately 136 potential tenants for each listing.
Cameron Kusher, PropTrack’s Director of Economic Research, comments on this pressing issue: “The rental market remains quite strained. Renters are grappling with immense competition, given the limited properties on offer. It’s the major cities driving this insatiable demand.”
Affordable Housing: A Glimmer of Hope
Despite soaring prices, there are pockets in Australia where properties are still within reach for many. Ray White’s analysis reveals a silver lining:
· Broken Hill in NSW had 55.5% of properties selling for under $500,000 in the last year.
· Darwin had 45.6% of such sales.
· In Perth, 41.3% of all sales were below the $500,000 mark.
Nerida Conisbee, Ray White Group’s chief economist, sheds some light on this: “There’s been a gradual decrease in affordable properties over two decades. However, options persist. Interestingly, a significant chunk of these sales were apartments, especially in regions with high apartment development.”
Banks Woo Investors with Lower Deposits
In a strategic move to draw investors back, major banks are revising their lending terms. The Commonwealth Bank, for instance, now permits loans with just 5% deposits for principal and interest loans. A shift from their previous 10% deposit requirement.
Sally Tindall, RateCity’s research director, views this as a positive sign. “The move indicates the bank’s renewed confidence in investors, given the rent spike. With vacancy rates at record lows, investors have a golden opportunity.”
Government’s Aid for First-Home Buyers
First-home buyers have found solace in the Federal Government’s low deposit guarantee scheme. Almost one in three utilized this in the past year, a dramatic increase from the previous year’s one in seven. The scheme assures up to 15% for eligible buyers, enabling them to buy with just 5% down.
Interestingly, Housing Australia data indicates 65% opted for houses, the rest for units. Top spots for the scheme included Mackay Harbour in Queensland and Armadale in Western Australia.
Foreign Interest in Australian Properties Soars
Post-pandemic, overseas interest in Australian real estate is booming. PropTrack’s data reveals that foreign property searches have doubled since 2019, with significant spikes from New Zealand and China. Paul Ryan, PropTrack economist, expects this trend to continue, “Given the reopening of international borders in 2022, we’re anticipating more student arrivals next year.”
Rasti Vaibhav, author of The Property Wealth Blueprint, weighs in:
Property investing is a journey that can transform your financial future. Want to explore how it can align with your personal circumstances? Let’s connect. Schedule a one-on-one chat with me here (https://getrare.com.au/ready) or join our enlightening educational workshops here (https://getrare.com.au/workshop). Let’s navigate this journey together.