Read Time: 6 minutes
On a capital city level, things have remained fairly consistent in the Australian housing market over the past two months. However, as we always say each city has their own property cycle in play with all markets having regions and suburbs performing above and below the city averages.
Sydney:
March: Capital Growth, Units: 0.1% ⬆︎
March: Capital Growth, Houses: - 0.5% ⬇︎
April: Capital Growth, Units: 0.1% ⬆︎
April: Capital Growth, Houses: - 0.6% ⬇︎
Median Dwelling Price, Units: $753,304 ⬇︎
Median Dwelling Price, Houses: $1,026,638 ⬇︎
Gross Rental Yield, Units: 3.8% -
Gross Rental Yield, Houses: 3.0% ⬆︎
New South Wales Unemployment Rate (March): 5.0% -
Property Cycle, Units: Starting to Decline
Property Cycle, Houses: Starting to Decline
Overall prices in Sydney are continuing to cool, there is still a noticeable difference in the length of time properties are on the market for with houses taking on average 43 days to sell compared to 29 days in February last year. Houses in bluechip suburbs are still selling for fair market value as long as the seller has realistic expectations. The narrative remains the same, if you’re looking to purchase your home in Sydney you should be buying for a fair price. If you’re looking to purchase an investment property it’s about doing your thorougher due-diligence and knowing the market movements of individual suburbs.
Melbourne:
March Capital Growth, Units: 0.0% -
March Capital Growth, Houses: - 0.3% ⬇︎
April Capital Growth, Units: 0.2% ⬆︎
April Capital Growth, Houses: - 0.6% ⬇︎
Median Dwelling Price, Units: $574,003 ⬇︎
Median Dwelling Price, Houses: $824,955 ⬇︎
Gross Rental Yield, Units: 3.9% -
Gross Rental Yield, Houses: 2.6% -
Victoria Unemployment Rate (March): 5.2% ⬇︎
Property Cycle, Units: Peak of Market
Property Cycle, Houses: Approaching Peak of Market
We continue to see cities on the fringe of Melbourne performing well, Geelong and Ballarat have seen a 12-month growth of 10% and 6.1% respectively. The metropolitan area has seen combined dwelling values (houses and units) cool by 0.7% over the last quarter, a relatively low amount. In April the Australian Bureau of Statistics (ABS) released the population growth for the past 12 months, with Victoria storming home with an increase of 2.4% (to NSW's increase of 1.6%). Those new arrivals all need shelter.
It’s important to note that both Sydney and Melbourne are global cities, mentioned alongside the greats of New York, London and Hong Kong to name a few. They have jobs (high paying ones), industry, infrastructure, culture and are bluechip places people want to live. The markets will move up and down, however, if you purchase in the correct suburb, with the correct property for the correct price, ultimately you will do ok.
Brisbane:
March Capital Growth, Units: 0.6% ⬆︎
March Capital Growth, Houses: 0.2% ⬆︎
April Capital Growth, Units: 0.6% ⬆︎
April Capital Growth, Houses: -0.2% ⬇︎
Median Dwelling Price, Units: $384,970 ⬆︎
Median Dwelling Price, Houses: $535,292 ⬆︎
Gross Rental Yield, Units: 5.4% -
Gross Rental Yield, Houses: 4.2% -
Queensland Unemployment Rate (March): 6.0% ⬇︎
Property Cycle, Units: Declining Market
Property Cycle, Houses: Rising Market
As whole the Brisbane market continues to be rather flat, however, there are still great suburbs 10 - 15kms from the CBD that are performing well above the metropolitan city average. Affordability in Brisbane will continue to be a growth driver, the ratio of the median house price to the median salary sits at about x six, compare that to the Sydney market where it’s sitting at about x 12! In the last CommSec State of the States report, Queensland lead the way on employment growth and population growth is at a four year high.
Canberra:
March Capital Growth, Units: 0.2% ⬆︎
March Capital Growth, Houses: 0.3% ⬆︎
April Capital Growth, Units: 0.4% ⬆︎
April Capital Growth, Houses: 0.7% ⬆︎
Median Dwelling Price, Units: $435,072 ⬆︎
Median Dwelling Price, Houses: $678,766 ⬆︎
Gross Rental Yield, Units: 5.6% ⬆︎
Gross Rental Yield, Houses: 4.3% ⬆︎
Australian Capital Territory Unemployment Rate (March): 4.1% -
Property Cycle, Units: Starting to Decline
Property Cycle, Houses: Rising Market
The Canberra market keeps on chugging along nicely and sits second behind Victoria with the largest increase in population at 1.8% (February 17’ - February 18’). The ACT has overall ranked third again in the most recent CommSec State of the States report. The Deloitte Access Economics' business outlook released last week also placed the ACT as having the fastest growing economy in the country. We’re seeing properties priced at fair market value moving and those in great condition being snapped up by renters. With the vacancy rates in Canberra overall being incredibly tight at 0.6% with the Belconnen district sitting at an incredibly tight 0.4% and the Inner North at 0.7%. Combine this with an increase in dwelling rents of 4.2% (only behind Hobart with a monster 11.7%) March 17’ - March 18’ - there is a great upside for investors.
Adelaide:
March Capital Growth, Units: 0.3% ⬆︎
March Capital Growth, Houses: -0.3% ⬇︎
April Capital Growth, Units: -0.3% ⬇︎
April Capital Growth, Houses: 0.1% ⬆︎
Median Dwelling Price, Units: $328,274 ⬇︎
Median Dwelling Price, Houses: $462,049 ⬆︎
Gross Rental Yield, Units: 5.1% -
Gross Rental Yield, Houses: 4.2% -
South Australia Unemployment Rate (February): 5.6% ⬇︎
Property Cycle, Units: Bottom of Market
Property Cycle, Houses: Rising Market
There’s not much to report on Adelaide, all the key metrics remain the same as per previous months. The newly installed Liberal government is firm on its commitment to Adelaide becoming the startup capital of Australia to create employment and grow the population. Premier Steve Marshall has put a proposal together to woo Google to set up their Australian HQ in the state (an option is on the old Royal Adelaide Hospital site). It’s exactly what this city needs!
Hobart:
March Capital Growth, Units: 2.2% ⬆︎
March Capital Growth, Houses: 1.6% ⬆︎
April Capital Growth, Units: -0.3% ⬇︎
April Capital Growth, Houses: 1.5% ⬆︎
Median Dwelling Price, Units: $353,292 ⬆︎
Median Dwelling Price, Houses: $452,935 ⬆︎
Gross Rental Yield, Units: 5.2% ⬆︎
Gross Rental Yield, Houses: 5.0% -
Tasmanian Unemployment Rate (March): 6.1% ⬆︎
Property Cycle, Units: Rising Market
Property Cycle, Houses: Rising Market
Hobart’s housing report card is littered with A+’s, yet again (unless you're a local looking for a rental property). It's the only capital city to record double-digit growth in the past two months. The supply Vs. demand levels are incredibly tight, with extremely limited stock on the market and we don’t see that changing anytime soon, with the bureaucracy surrounding land releases and the shortage of talented and qualified builders. Hobart continues to be a market for active investors, ones who are looking for a shorter-term play. There is a ceiling to what the locals can afford to pay for a property. The economy continues to profit from tourism, health services (for the ageing population) forestry and aquaculture.
Perth:
March Capital Growth, Units: -0.3% ⬇︎
March Capital Growth, Houses: 0.4% ⬆︎
April Capital Growth, Units: 0.0% -
April Capital Growth, Houses: 0.0% -
Median Dwelling Price, Units: $400,717 ⬇︎
Median Dwelling Price, Houses: $487,992 ⬇︎
Gross Rental Yield, Units: 4.4% -
Gross Rental Yield, Houses: 3.8% -
Western Australia Unemployment Rate (March): 6.9% ⬆︎
Property Cycle, Units: Declining Market
Property Cycle, Houses: Bottom of Market
The old wild west continues to be spoken of in more complimentary tones. Resource job listings are up 35% since March 2017, a good sign for our resource heavy states of QLD and WA. We continue to see markets within Perth performing well, although overall the cities rental vacancy rates continue to sit at an uncomfortable 4.1%. A market we continue to sit and watch.
Darwin:
March Capital Growth, Units: -0.9% ⬇︎
March Capital Growth, Houses: 1.9% ⬆︎
April Capital Growth, Units: -1.1% ⬇︎
April Capital Growth, Houses: 1.4% ⬆︎
Median Dwelling Price, Units: $334,436 ⬇︎
Median Dwelling Price, Houses: $487,992 ⬆︎
Gross Rental Yield, Units: 6.4% ⬆︎
Gross Rental Yield, Houses: 5.5% ⬇︎
Northern Territory Unemployment Rate (March): 3.9% ⬇︎
Property Cycle, Units: Bottom of Market
Property Cycle, Houses: Bottom of Market
House values in Darwin have recorded positive growth over the last couple of months, however, it’s nothing to get excited about. The city and region still sit in the last place on just about every indicator!
If you’re thinking of renovating or purchasing in Australia and simply unsure how to progress please get in contact to see if we can help.
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/Herron Todd White/Australian Government, Department of Employment/SQM Research/Australian Bureau of Statistics/Liberal Party South Australia/Demographia Report/CommSec State of the States Report/Labour Force
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