In Australia, property is more than just an asset; it's a national obsession! As ingrained in our culture as the rivalries of football codes, the aroma of barbeques, and the bold taste of Vegemite. For renters, homeowners, aspiring first-time-buyers and investors, real estate remains a hot-button topic for all participants in the market.
Even with heightened interest rates, increased migration, and the long shadow of the pandemic, the market has persistently bucked trends and defied the odds. Our mortgage brokers share their views on the current property market in our latest quarterly update.
Property Prices: Current Growth Trends Across the Country
Remarkably, this month marks the 17th consecutive month of property price increases on the national level. While all capital cities have seen growth, some have accelerated faster than others, with an overall capital increase of 0.70% in May. Nationally, the average property value is now about 10% more than this time last year - a sign of sustained market health that speaks to the enduring appeal of Australian real estate for investors and homeowners.
Spotlight on Sydney and Melbourne The Highs and Lows of Major Markets
Sydney's real estate retains its allure as the most expensive market, with average home prices nearing the $1.4 million mark - a stark contrast to the national median of approximately $780,000. On the other hand, Melbourne's typical house price stands at around $900,000 but has seen its growth temper, partly due to legislative changes in land tax and recent influxes of investor-targeted taxes, urging investors to explore beyond its confines.
The Growth Leaders: Perth, Brisbane, and Adelaide
Emerging as the frontrunners of growth, Perth, Brisbane, and Adelaide have witnessed increases of 2%, 1.4%, and 1.8% respectively, with Perth experiencing an impressive 22% jump in median values over the past year alone. This surge underscores diverse opportunities across the nation for investors seeking value in a varied landscape.
A Macro View: Resilience Amidst Challenges
The collective rise of over 10% in the capitals’ average dwelling values over a year is notable amidst the backdrop of soaring cash rates and a severe cost of living crisis. Moreover, factors like an undersupply of new housing and a tight rental market have contributed to this resilience, reflecting a broader narrative of a market that stands strong in the face of adversity.
The Market Dynamics: Supply, Demand, and Interest Rates
An almost poetic contradiction exists in the market today. Despite an average owner-occupier home loan interest rate of 6.28%, tight credit, and rampant inflation, the market continues to surpass expectations. The confluence of a significant undersupply in new housing and robust population growth paints a complex picture - one where the anticipated market cooldown has given way to sustained vitality.
BlueRock Finance: Guiding You Through Your Property Journey
So what’s the point of all this? Property, for all the hoopla, doom and gloom, has remained a great investment both for investors and homeowners. So if you’re a prospective buyer seeking expert advice and out-of-this-world service about your mortgage options, speak to the team at BlueRock Finance .
We understand the intricacies of the property market and the challenges you face, whether you're buying your first home or expanding your investment portfolio. We provide tailored advice and strategies that align with your unique goals, ensuring your property decisions are as informed as they are ambitious.
