Property Weekly Pulse with Rasti:
Week Ending 15th Dec ’23
Hey there, property enthusiasts! Rasti Vaibhav here with your quick-hit update on the Australian property market as of mid-December 2023. We’re seeing some fascinating shifts, from surprising leaps in home lending to potential booms in property prices. This roundup isn’t just numbers – it’s about what these changes mean for you, whether you’re investing, buying your first home, or just keeping an eye on the market. Let’s unpack the latest trends that are stirring up the property scene down under.
Surge in Home Lending – A Sign of Market Confidence
In a significant development, the Australian Bureau of Statistics reported a 5.4% increase in new mortgage commitments – the first year-on-year growth in almost 18 months. This uptick is a robust indicator of returning market confidence. Delving into the details:
●Owner-occupier loans increased by 5.6%
●Investor lending grew by 5%
●First-home buyer lending rose impressively by 6.4%
Notably, construction loans to investors have skyrocketed by 17.2%. According to Eliza Owen from CoreLogic, this trend is buoyed by investors flocking to off-the-plan apartments. However, for owner-occupiers, the rising costs and extended timelines of construction could be a cause for concern. Sally Tindall from Ratecity.com.au also noted that refinancing rates have dipped to their lowest since rate hikes began, signaling a shift in homeowner strategies.
Hotspots Where Properties Are Selling Rapidly
The real estate market is witnessing unprecedented sales velocity in various regions. Properties are being snapped up at remarkable speeds, indicating high demand and investor confidence. Here’s a quick look at some standout locations:
●Leda, WA: Just 8 days on market
●Normanhurst, NSW: 13 days on market
●Watsonia North, VIC: 21 days on market
●Brendale, QLD: 18 days on market
●Hillier, SA: 39 days on market
●Rosney, TAS: 22 days on the market
●Nakara, NT: 74 days on market
2024 Property Price Predictions – Cities to Watch
As we gaze into the future, specific cities are poised to lead in property price growth. According to PropTrack’s December Property Market Outlook report, we can anticipate a national price growth of 1% to 4% over the next 12 months. Cameron Kusher, the director of economic research at PropTrack, emphasises that low stock levels, strong buyer demand, and a shortage of new construction amid robust population growth underpin this trend. The forecasted price rises are particularly noteworthy in:
●Perth: +5% to +8%
●Adelaide: +4% to +7%
●Brisbane: +3% to +6%
●Sydney: +2%
●Melbourne: +1% to +4%
Rental Market Trends – What’s on the Horizon
Renters and investors note that significant changes are expected in the rental market. Perth is gearing up for the highest rental increase in Australia by the end of 2024, projected at a staggering 9.5%. Melbourne, Sydney, and Brisbane are not far behind, with substantial increases anticipated. Graham Cooke from Finder highlights a concerning trend: 42% of renters already struggle with current rental rates. Despite government initiatives to regulate immigration, rental prices are predicted to continue upward.
H2: Attention Foreign Investors – Tax Changes Incoming
The Australian government is set to revise tax policies for foreign investors to address the national housing crisis. These changes include tripling foreign investment fees for established homes and doubling vacancy fees for properties acquired since May 9, 2017. Treasurer Jim Chalmers outlines that these measures aim to align foreign investment with the national agenda of boosting affordable housing and economic growth.
In wrapping up this week’s insights, it’s evident that the Australian property market is a dynamic and ever-evolving landscape. Whether you’re stepping in as a first-time buyer, a seasoned investor, or a seller, staying updated with these trends is key to making informed decisions.
Rasti Vaibhav, Author, The Property Wealth Blueprint
Navigating the property market’s complexities can be daunting, but fear not – I’m here to guide you through. Keen on understanding how these developments impact your property journey? Book a one-on-one consultation with me at https://getrare.com.au/ready or join our educational workshops to gain deeper insights at https://getrare.com.au/workshop. Let’s unlock the potential of your property aspirations together!