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There’s now a light at the end of the tunnel and that’s great for our wellbeing, our families, and our property markets.
The pipeline of supply of houses for sale is rebounding strongly in Melbourne amid the easing of restrictions and Sydney’s pipeline is also growing, if from quite low levels.
With more properties coming onto the market, price gains are now starting to slow a little in our two big capitals.
Don’t get me wrong property values are still increasing, and at double-digit annual rates of growth; but they’re not growing as fast as they were before.
Price gains across the other major state capitals continued their recent trajectories.
Brisbane-Gold Coast price gains have been the strongest so far this month, up 1.9% compared to 1.3% in Sydney and 0.7% in Melbourne.
Corelogic reported the auction clearance rate in Melbourne at boom-time levels again – 80.1%.
Here’s what happened to property prices…
- Sydney property prices have kept moving higher, up another 0.3% in the last week alone, up 1.3% for the month of October to date, and up 25.0% over the last 12 months.
- Melbourne house prices rose 0.1% this past week, up 0.7% for the month of October to date, and up 16.1% over the last 12 months.
- Brisbane house prices increased 0.6% over the last week, up 1.9% for the month of October to date, and 23.3% over the last year.
The number of properties for sale in Australia is still in short supply
The supply of properties for sale just can’t keep up with demand.
In many locations around Australia for every new property coming onto the market for sale, 1.4 properties are being sold around Australia.
Capital city demand continues at a vigorous rate, with buyers out in force – owner-occupiers, investors, and first home buyers – at a time when available supply struggling to keep up.
The table below shows how the stock of advertised properties is well below year-ago levels across all capital cities.
At the same time “time on market” continues to decline.
These are signs that property values will continue to rise moving forward, but it is likely that with lockdowns being lifted, more properties will come on the market for a late spring selling season.
To help keep you up-to-date with all that’s happening in property, here is my updated weekly analysis of data and charts as of October 25th provided by Corelogic, and realestate.com.au.
Monthly Listings Report
New listings across Australia surged 22.5% month-on-month in September, driven by increases in Melbourne and Canberra according to the PropTrack Listings Report October 2021.
The growth in Melbourne listings coincided with the return of in-person property inspections, from mid-September.
This monthly report analyses new and total listings on realestate.com.au to provide the most up-to-date view on property market supply trends.
- New listings lifted sharply in Sydney (31.6% MoM) and regional NSW (19.2% MoM) in September.
- Buyers looking for properties in the Northern Beaches (42.4% MoM) and the Inner West (53.4%) enjoyed more choice in September.
- Options continued to be limited for buyers looking in regional areas, with total listings nearly 40% lower than a year ago. Nonetheless, there was new supply available in September across most parts of the state. Those looking in the Far West and Orana (39.6% MoM) or Newcastle and Lake Macquarie (31.1% MoM) saw strong increases in new listings.
- Parramatta (10.4%) and the City and Inner South (8.7%) had the highest share of total properties for sale within Sydney, while Sutherland (3.6%) had the lowest. Regionally, New England and the North West had 14.8% of all regional listings, the highest share in the state.
What’s happening in our property markets?
Median property prices
Vendor metrics confirm that despite the lockdowns, we’re in a seller’s market with the number of days to sell the property very low (a sign of the tight supply situation), and vendor discounting (it’s easier for them to sell) at very low levels.
In general, houses are selling better than apartments, but the shortage of good properties on the market is seeing properties selling quickly with minimal discounting.
Our Rental Markets
While rental growth is slowing, we’ve still experienced the highest rental growth in over a decade.
Growth in rental rates eased over the second quarter of 2021, with the national rental index rising by 2.1% over the 3 months to June compared to a 3.2% rise over the March quarter.
While rental growth has slowed over the recent months and quarters, the latest figures take national rental rates 6.6% higher over the year; the highest annual growth in dwelling rents since January 2009.
Regional rents continued to outpace capital city rents over the second quarter of 2021, with regional dwelling rents rising by 2.7% against a 1.9% rise in capital city rents.
This was a 1.4 percentage point reduction in the rate of growth quarter on quarter for the combined regionals, and a 1 percentage point reduction for the combined capital cities.
Despite the easing in growth in recent months, regional Australia recorded an annual rate of rental growth of 11.3% in June 2021.
Last weekend’s auction clearance rates
With Australia’s two main auction markets once again open for business, this weekend once again delivered strong auction results.
Dr. Andrew Wilson of My Housing Market was tracking 2,048 auctions in the major capitals this weekend, a few more than last weekend’s 1,970.
Adelaide was the stand-out performer with a preliminary auction clearance rate of 91.7% from 132 Auctions.
Other preliminary clearance rates (as reported by Dr. Andrew Wilson’s Auction Insider) were:-
- Canberra – 88.2%
- Brisbane – 86.1%
- Melbourne – 80.4%
- Sydney – 77%
Source of graphs and data: CoreLogic, REA, and Dr. Andrew Wilson – My Housing Market 25th of October 2021.
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