This article provides a snapshot of the key findings from the CoreLogic Monthly Housing Chart Pack for June 2024, helping you stay informed about the latest trends and data in the Australian housing market. Below is an overview of the major findings:
Overview of Residential Real Estate
Residential real estate continues to be a cornerstone of Australia’s wealth, with the total market valued at $10.7 trillion. The sector supports 11.1 million dwellings, with outstanding mortgage debt at $2.3 trillion. The gross value of sales per annum stands at $451.8 billion from 503,729 transactions, underscoring the market’s robust activity.
National Dwelling Values
The pace of quarterly growth in national dwelling values increased to 1.9% in May 2024, up from 1.1% in January. However, annual growth eased to 8.3% from 9.4% in February. Notably, lower quartile dwelling values rose by 3.0%, outpacing the upper quartile’s 1.2% increase, indicating a stronger growth trend in more affordable housing.
Regional and Capital City Performance
The combined capital cities saw a 1.9% rise in dwelling values over the past three months, while regional areas experienced a slightly higher increase of 2.0%. On an annual basis, combined capitals recorded an 8.8% increase, with combined regionals at 6.8%.
- Brisbane: Reported strong growth with a 3.9% quarterly and 16.3% annual increase.
- Sydney: Dwelling values increased by 1.2% quarterly and 7.4% annually. Sydney values are now at the same level as January 2022.
- Melbourne: Experienced a slight decrease of 0.2% over the quarter but a 0.1% increase annually.
- Adelaide: Continued its upward trend with a 4.3% quarterly and 14.4% annual rise.
- Perth: Noted significant growth with a 6.1% quarterly and 22.0% annual increase.
Listings and Sales Activity
New listings totalled 38,236 in the four weeks to June 2nd, marking a 17.2% increase from the same period last year. Despite the higher rate of new listings, total listings remain subdued due to strong sales absorption. Victoria saw a notable increase in listings, while Perth experienced a significant decrease, highlighting regional variances in market conditions.
Rental Market Dynamics
National rents held steady at an annual growth rate of 8.5% in May. Growth in regional rents accelerated to 6.9%, while capital city rents slowed to 9.1%. Gross rental yields increased slightly to 3.75%, the highest since October 2019.
Housing Finance and Credit
The value of home lending rose by 4.8% in April to $29.4 billion, with investment property lending growing faster than owner-occupier lending. Investor finance now comprises 37.0% of new mortgage lending, its highest level since May 2017. First home buyer finance also saw a rise, though their share in the market slightly decreased.
Market Outlook
The Reserve Bank of Australia (RBA) maintained the cash rate steady in May, but the economic outlook remains uncertain with persistent inflation and tight labor markets. Average new variable mortgage rates for owner-occupiers and investors held relatively flat, indicating stable borrowing costs despite high interest rates.
For a more detailed analysis and a copy of the full report contact me for personalised advice on 0401 610 619 or [email protected]
