There’s a spring in the step in the Australian property market as we head into October.
As anticipated, new listings have increased across all capital cities over recent weeks. The largest number of new listings were seen in lockdown capitals Sydney and Melbourne.
CoreLogic reports that we’re experiencing the highest level of housing turnover for twelve years.
Almost 598,000 house and unit sales were recorded for the year ending August 2021. This is the highest number of sales since 2004 and a 42 per cent lift on the annual number of sales over the same period in 2020.
The International Monetary Fund has issued a warning to the Australian property market, believing that the market could be headed for a crash.
The IMF wants local regulators to step in to slow the market down. Australian big banks are in agreement, issuing a similar warning only days before.
The IMF suggested increased interest rates, tighter lending rules, increased home building and reform to generous housing-related tax benefits. Potential buyers are encouraged to consider how well they can absorb an increase in interest rates before signing on the dotted line.
Sydney Property
- An increase in housing supply over the last month in Sydney suggests that the tide may finally be turning for buyers struggling with soaring prices. Lockdown has only marginally impacted listing volumes, with total listings just 3.9 per cent below the five year average for this time of year.
- CoreLogic has named Arncliffe the most affordable suburb within 10 kilometres of the Sydney CBD. The median house price for the area is $1.455 million. Others suburbs to rate a mention were Waterloo, Sydenham and Tempe.
- Over the last quarter, the most profitable suburbs in Sydney were Ku-ring-gai, Woollahra, Mosman, Hunters Hill, and the Northern Beaches. Sales in Randwick and Hornsby also returned decent profits.
- Considering an investment? Buying in a sought after school zone might be a smart move. Domain reports that house prices in some school zones have increased by 40 per cent in the last year. Rather than deter buyers, it’s had the opposite effect, with demand at an all-time high. Areas to watch include Avalon, Cronulla, Newport, Woy Woy, Kogarah, St Ives and Freshwater.
Melbourne Property
- The ‘cheapest’ suburb within 10 kilometres of Melbourne’s CBD is Maidstone. According to CoreLogic, the median house value is $922,681. It’s the only inner-city suburb median below the $1 million mark. Suburbs nudging just over the magic million were Footscray, Coburg North and Spotswood.
- With increasing strain on housing affordability in Melbourne, there are some outlying suburbs where a three or four-bedroom home can be snapped up for under $500,000. Realestate.com reports that Werribee, Craigieburn, Melton South and Tarneit are all areas to consider.
- On-site auctions are set to resume in Melbourne on October 26. Up to fifty fully vaccinated attendees will be permitted. In addition, in-person inspections will also be allowed. Industry insiders are welcoming the change.
- There’s a fixer-uppers frenzy in Melbourne right now with, in some cases, unliveable houses and units hitting the market with multimillion-dollar price tags attached. Richmond and South Yarra are at the top of the wish list for prospective buyers.
Brisbane Property
- Despite significant price growth in the financial year ended 30 June 2021, Brisbane continues to offer great value to buyers. Brisbane’s median house price rose by 14.8 per cent while the median unit price increased 5.7 per cent.
- Areas doing well in the Queensland capital and worth watching are Banyo, Nudgee, Wooloowin, Kalinga and Windsor. The latter a homebuyer favourite that’s recently joined the new million-mark median house price club.
Perth Property
- Four more suburbs joined the million-dollar club in September as median prices grew to seven figures. Suburbs include North Beach, Attadale, Wembley and South Fremantle. Meanwhile, the annual property growth in Floreat, Dalkeith, Salter Point and Cottesloe is more than the yearly household wages, according to an analysis of data from Domain and the ABS.
- Westminster was named as the most affordable suburb in Perth within 10 kilometres of the CBD. The median average price in the suburb is $404,577. In close second was Nollamara, while Queens Park, Redcliffe and Cloverdale all sit below the half-million median.
- The stamp duty rebate for units sold off the plan has been extended in a bid to increase the supply of apartments and attract investors back to the state. The rebate will be in place until 24 October 2023.
Canberra Property
- House hunters in the capital are spending more on properties in school catchment zones. New data from Domain reveals that homes near sought-after primary and secondary schools have soared in price compared to the rest of the city, up on average 33.8 per cent in the past year. Ten priority areas were named, including Mawson, Kaleen, Gordon and Macquarie.
- Lockdown restrictions will ease this month, with outdoor auctions set to resume on October 15. Real estate services and indoor auctions will be able to operate from October 29. Capacity limits will apply.
Adelaide Property
- CoreLogic reports that property sales across South Australia are up almost 40 per cent on the previous year. Although stock volumes remained low, particularly in Adelaide, it seems that long term investors have decided to sell up on the back of a more robust market.
- Median prices are also on the rise, with 104 metropolitan suburbs identified as rising markets. According to realestate.com, Port Adelaide Enfield continued to lead the market for price growth, followed by Onkaparinga, Charles Sturt and Marion. Interestingly, in all of the growth areas, the median house price is below $450,000.
Darwin Property
- Darwin now has the highest number of first home buyers in the country. Over the last twelve months, 43 per cent of total property sales were to first-time property buyers. However, CoreLogic reports that the affordability of buying into the market may be tested over the coming months as house and unit prices continue to climb. The increases are in part being driven by continued interest in the city from interstate and international buyers.
To read the 2 page PDF report, click here…
