July’s Property Update

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Australia’s property market continued its slow and steady upward trajectory in the second quarter of 2024, experiencing 1.8 per cent overall growth. 

As shared by CoreLogic, this is down from 1.9% in the March quarter of this year, and down from 3.3% in the June quarter of 2023. Meanwhile, the annual pace of growth has slowed to 8.0%, down from a high of 9.6% that was experienced in the 12 months to February.

Perth, Adelaide and Brisbane experienced the highest growth in home values over the last quarter. The only two capital cities to experience a decline in prices during this time period were Hobart and Melbourne, although Melbourne’s year on year figures show that there has been growth. 

As the numbers show, average prices in many capital cities have never been higher: 

Sydney: 1.1 per cent growth for the June quarter

               6.3 per cent annual growth

               Sydney dwelling values are currently at a record high.

Brisbane: 3.7 per cent growth for the June quarter

                 15.8 per cent annual growth

                  Brisbane dwelling values are also currently at a record high.

Melbourne: -0.6 per cent growth for the June quarter

                    1.3 per cent annual growth

  Melbourne dwelling values are now -3.9% below the all-time high, which was recorded in March 2022.

Adelaide: 4.7 per cent growth for the June quarter

                 15.4 per cent annual growth

                 Adelaide dwelling values are currently at a record high.

Perth: 6.4 per cent growth for the June quarter

            23.6 per cent annual growth

Perth dwelling values are currently at a record high.

Hobart: -0.3 per cent growth for the June quarter

              -0.1 per cent annual growth

             Hobart dwelling values are now -11.7% below the record high, which was in March 2022

Darwin: 1.0 per cent growth for the June quarter

              2.4 per cent annual growth

  Darwin dwelling values are now -5.7% below the record high, which was in May 2014.

Canberra: 0.8 per cent growth for the June quarter

      2.2 per cent annual growth

      Canberra dwelling values are now -5.4% below the record high, which was in May 2022.

Meanwhile, property sales volumes are 8.6 per cent higher than this time last year. CoreLogic reports that the six-month moving average sales volume is roughly in line with the monthly average for the past five years.

Around the country, homes are taking slightly longer to sell in all capital cities except for Perth, Adelaide and Brisbane. Reports show that the current selling time in Perth is down to just 10 days on average. 

For auctions, clearance rates softened from an average of 65.1 per cent to 64.2 per cent in June, but this is still above the average of 63 per cent. 

Reports say dwelling values across regional Australia increased by 1.9 per cent in the three months to June 2024. Year on year, prices have risen by 7 per cent for the combined regions.

Regional NSW: 0.9 per cent quarterly growth, 4.1 per cent annual growth

Regional Qld: 3.3 per cent quarterly growth, 12.2 per cent annual growth

Regional Vic: -0.7 per cent quarterly growth, -0.5 per cent annual growth

Regional WA: 5.0 per cent quarterly growth, 16.6 per cent annual growth

Regional SA: 3.8 per cent quarterly growth, 11.3 per cent annual growth

Regional Tas: 1.4 per cent quarterly growth, 0.7 per cent annual growth

Latest figures show that the growth rate in capital city unit rents has fallen from 15.1% to 7.6% over the last twelve months, with the biggest slowdowns being experienced in Sydney, Melbourne, and Brisbane. Across the regions and capitals, growth rates have fallen to 8.6% from a high of 10.6% in April.

As shared by CoreLogic, this comes “amid early signs of easing net overseas migration, which according to ABS data peaked in the March quarter of 2023″. However, while rental prices now show indications of slowing down, they are still far greater than the 2.7% and 2.6% growth rates experienced during the 2010s. 

A private treaty sale involves listing your property at a set price and negotiating directly with potential buyers. The process is slightly different; buyers submit offers when they are ready and you make the decision as the seller which offer to accept. There may be some back and forth about the settlement date, conditions of the sale and whether or not a cooling off period will be included in the contract. 

This is the more common method of selling houses in Australia, but different areas have different trends. In higher-priced areas, for example, homes tend to sell more at auction. 

Finally, dwelling approvals rose by 5.5% in May, with the jump being influenced by a 14.2% lift in unit approvals. 

KPMG recently released its latest property market forecast, saying it expects annual rent growth to be around 4–5% over the next two years, based on projections for new dwelling completions and the Treasury’s population forecasts. 

In terms of pricing, the analysts at KPMG expect that overall growth will be slower in 2024 than in 2023 because of the cooling effect high interest rates are having on the market. It predicts an interest rate cut at the end of 2024, which is forecast to have a positive impact on house prices. National house prices are expected to continue to rise by 5.3% in 2024 and 5.6% in 2025, and unit prices will rise by 4.5% in 2024 and 5.6% in 2025.

Strong prices and confidence about the future means now is a good time to sell or start preparing to sell in Australia, particularly if you are planning to downsize.