THIS MONTH IN REVIEW
Realestate.com.au Sarah Dowling says economists predict interest rates will fall under the leadership of the new RBA governor Michelle Bullock when she takes over from Mr Lowe in September.
Property prices are on the rise despite the avalanche of rate hikes since May 2023. According to CoreLogic’s data, all major capitals have recorded a month-on-month increase in total dwelling values, with Sydney leading the way at 1.8%.
The growing prices are driven by a “low supply of sales listings”, according to Nicola McDougall of PIPA. However, Domain’s data shows that properties in the nation’s capitals are taking an average of 20 to 30 days longer to sell, compared to same time last year
According to HIA Chief Economist Tim Reardon, the construction sector will not feel the full impact of rate rises until 2024. This is due to the lag between the completion of projects currently in the pipeline versus the 41.8% year-on-year drop in sales of new homes.
Mr Reardon predicts new home construction commencements in 2024 “will reach its lowest volume since 2012”.
The collapse of construction company Toplace, affecting over 500 creditors and 20,000 homeowners, is set to become “one of the largest property administrations in Australia”, according to Suelen McCallum of dVT Group, Toplace’s appointed administrators.
Source: ABS (most recent figure at time of publication)
CAPITAL CITY UPDATES
- With an average of 123 days on the market, Darwin properties take the longest to sell compared to other capitals, which take an average of 62 days, according to Domain’s data.
- A recent realestate.com.au article says there’s opportunity for investors willing to renovate, presented by Darwin’s two-tier market. It says that while ready-to-move-in properties sell fast and attract high prices, the undervalued “ugly ducklings” are often overlooked.
- Darwin’s median advertised rental price, now sitting at $570 per week, has risen in the last quarter by 1.8% and a total of 4.8% year-on-year, according to PropTrack’s latest data.
RBA Cash Rate
Cash Rate Forecast
12 mths to Jun‘ 24
year to Jun
year to Mar qtr
year to Nov qtr
up for July
source:: Westpac-Melbourne Institute
year to Mar qtr
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