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April, famous for being the month Russell Crowe was born, the month the Roller Skate was invented and the month the Australian property market recorded the lowest month-on-month growth since December 2015.
Sydney recorded a 0.0% change in dwelling values (meaning it stayed unchanged from March). Now, let's remember over the past five years property dwelling values in Sydney have risen by 75.1%. You wouldn’t have been foolish for thinking it was time to bulk buy tinned food, bottled water and head for your homemade bunker. The outlandish media headlines are almost laughable #fakenews.
So what does the data tell us? The month of Easter (March or April) typically has lower capital gains. The below table illustrates the combined capitals all dwellings data for the past four years over the Easter period.
It’s also interesting to note the negative media narrative was similar in past years over this period as we have seen in the last couple of weeks. As we know property prices are driven by a number of factors, that simply don’t just change overnight. You must track the relevant data that has the potential to alter property prices in the various markets, as we do.
It’s good to hear Shayne Elliott, the CEO of ANZ bank, quoted as saying "There is absolutely not a housing bubble today in WA. The housing bubble that people talk about is really restricted to Sydney and Melbourne, more or less, and even then, within Sydney and Melbourne, there are pockets where prices are continuing to rise and there is absolutely evidence today of areas where prices are stabilising and falling in some areas.” We couldn’t agree more, it’s all about having a great understanding of the data, undertaking the correct research and purchasing in the right area.
Let’s take a look at some of the key data in April:
Sydney:
Capital Growth (all dwellings): 0.0% -
Compared to the Easter period last year: 1.0%
Median Dwelling Price (all dwellings): $865,000 ⬆︎
Gross Rental Yield (houses): 2.7% -
Auction Clearance Rate: 79% ⬇︎
Melbourne:
Capital Growth (all dwellings): 0.5% ⬇︎
Compared to the Easter period last year: -0.6%
Median Dwelling Price (all dwellings): $650,000 ⬆︎
Gross Rental Yield (houses): 2.7% -
Auction Clearance Rate: 81% ⬆︎
Brisbane (ex. Gold Coast):
Capital Growth (all dwellings): 0.6% ⬆︎
Compared to the Easter period last year: -1.2%
Median Dwelling Price (all dwellings): $481,000 ⬆︎
Gross Rental Yield (houses): 4.1% -
Auction Clearance Rate: 48% ⬇︎
Canberra:
Capital Growth (all dwellings): -2.8% ⬇︎
Compared to the Easter period last year: -0.8%
Median Dwelling Price (all dwellings): $605,000 ⬆︎
Gross Rental Yield (houses): 4.2% ⬆︎
Auction Clearance Rate: 69% ⬇︎
Hobart:
Capital Growth (all dwellings): 1.0% ⬇︎
Compared to the Easter period last year: -1.1%
Median Dwelling Price (all dwellings): $363,200 ⬆︎
Gross Rental Yield (houses): 4.9% ⬇︎
Auction Clearance Rate: 57% ⬇︎
Adelaide:
Capital Growth (all dwellings): 0.8% ⬆︎
Compared to the Easter period last year: 0.5%
Median Dwelling Price (all dwellings): $430,000 ⬇︎
Gross Rental Yield (Houses): 3.9% ⬇︎
Auction Clearance Rate: 76% ⬆︎
Perth:
Capital Growth (all dwellings): -1.0% ⬇︎
Compared to the Easter period last year: 1.2%
Median Dwelling Price (all dwellings): $472,200 ⬇︎
Gross Rental Yield (houses): 3.6% -
Auction Clearance Rate: 33% ⬇︎
Darwin:
Capital Growth (all dwellings): 0.5% ⬇︎
Compared to the Easter period last year: 2.1%
Median Dwelling Price (all dwellings): $467,000 ⬇︎
Gross Rental Yield (houses): 4.9% ⬇︎
Auction Clearance Rate: 30% ⬆︎
National Outlook (Combined Capitals):
Capital Growth (all dwellings): 0.1% ⬇︎
Compared to the Easter period last year: 0.2%
Median Dwelling Price (all dwellings): $625,800 ⬆︎
Unemployment Rate: 5.7% ⬇︎
RBA, Official Cash Rate: 1.5% -
Consumer Confidence Index: 99% ⬇︎
Business Confidence Index: 166.6% ⬆︎
Milk Chocolate was founded seven years ago by Richie Ragel and Michael Cleary, to purchase residential and commercial property in Australia on behalf of our clients, looking for a home or investment property. To see how we can help you get in touch here.
Thanks, Michael
Sources: CoreLogic / Cordell / Population Australia / Trading Economics / Roy Morgan Research / Australian Bureau of Statistics / Herron Todd White / AFR
#onthehunt #milkchocproperty #propertyconcierge
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