The national property market has increased in value by 2.9% over the last quarter ending October 2019.
Notably, Sydney and Melbourne increased significantly by 5% and 5.5%, respectively. Despite this, Perth and Darwin are the only two cities that recorded negative growth, the pace of decline has slowed down in Perth (-1.7%) and Darwin (-1.2%).
The housing prices remain 5.7% below the peak in 2017, which means the current prices are equal to the level 3 years ago.
Sydney - $817,886
Melbourne - $650,197
Brisbane - $493,426
Adelaide - $433,140
Perth - $435,119
Hobart - $460,033
Darwin - $394,132
Canberra - $601,487
Combined Capitals - $610,645
Combined Regional - $378,495
National - $529,860
The contributory factors that bought a surge in market activities including:
the lowest interest rate in Australian history (0.75%)
high population growth
easier access to credit
first home buyers’ assistance scheme that added 10,000 buyers/per year in the market.
The rates of price rebound are different between the price ranges, the top quartile of Sydney and Melbourne experienced price appreciation of 7.1% and 5.9%, respectively, while the price increases were slower in the middle and the bottom quartiles, ranging from 3.2% to 4.6%.
However, the rental market remains weak, with rental yields falling across the major cities. The current rental yields are:
Sydney - 3.2%
Melbourne - 3.4%
Brisbane - 4.6%
Adelaide - 4.4%
Perth - 4.3%
Hobart - 5.2%
Darwin - 5.8%
Canberra - 4.7%
This is mainly due to the build-up of apartments in the last few years, which were still not fully absorbed by the market, as well as the surge of prices in the last few months.
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