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Crazy Perth property market dominates on every level
Crazy Perth property market dominates on every level

This video series features Kate Hill’s jam-packed news update on all things property and real estate.

In this episode Kate takes a closer look at property market conditions in our capital cities and explains why Perth is dominating on every level.

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Hello everyone out there how are you all doing?

I’m Kate Hill bringing you the best unbiased and honest content on property along with some fantastic hints and tips. Stay tuned today for all your latest property news.

[Music] Western Australia dominated the list of the top performing suburbs in Australia for 2023 taking out nine of the 10 spots according to data from PropTrack.

Affordability and yields were the big influences in 2023 with Armadale in Perth recording the highest median house price growth of 34% to bring its median to $404,000.

South Australia’s top performer was Elizabeth North with a growth of 30% to $366,000. It came in eighth position in the top 10. Riverview at $464,000 in Ipswich had the strongest growth of 24% in the Brisbane area, while Denniston East and Clontarf shared top honours in Sydney with 17% growth to $2.3 million and $5.5 million respectively.

In Melbourne Harkaway and Officer both had growth of 10% to bring their medians to $1.2 million and $820,000 respectively. Median house price growth was quite low in Tasmania with Kingston Beach the best performer with its median up 2% to $882,000. Berrimah in Darwin recorded a 13% increase while in the ACT Aranda was up 8% to $1.2 million. Perth is set to be hit with Australia’s highest rental increases in 2024, while Hobart will have the smallest according to new analysis by Finder.

It says that rents will increase by 9.5%, it’s very specific, in Perth by the the end of next year. Finder’s head of consumer research says that the Hobart rents are expected to increase by only 3%.  Melbourne rents are tipped to rise 6.8%, while both Sydney and Brisbane will rise 6.5%.  Darwin by five and a half percent. The analysis that says that Adelaide rents will rise by 5%. 

We’ll see how that checks out.

They say that the Finder consumer sentiment tracker shows 42% of renters are already struggling to pay their rent.  

Much of the conversation around rate rises focuses on homeowners they said, but it’s actually renters who are proportionately feeling the impact more as they deal with flow on rent increases. Further rent increases will not be welcome news for those struggling, really shocker. Analysts predict that rents will continue to rise despite a federal government announcement that it will scale back immigration to more sustainable levels.

Because if you’ve been watching this channel, we all know that immigration is not the main contributor to rising rents. Rents in Adelaide continue to soar in the midst of the lowest vacancy rates in the country, spelling more grim news for renters’ incentive to rent-vestors and opportunity for investors.  It’s been all eyes on Adelaide in 2023 where dwelling values remained record highs, but what is happening in the rental market? Affordability overall across the country has put downward pressure on the speed of rental growth recently, but since covid rental values have swollen by 30%.  While the cheapest capital for rent in years gone by, Adelaide has lost that position to Hobart, which is welcome news for investors. Adelaide’s median dwelling rents sit around $540 a week which is a growth of 7.2% over the last 12 months.

The ongoing shortfall in rental listings continues to push rents higher with the national vacancy rate continuing to record low percentages.  Vacancy rates in Adelaide remain extremely low and appealing to investors, many of whom are descending on the city from interstate. In fact, Adelaide has the lowest vacancy rates in the nation at a mere 0.3%.

In welcome news for investors, rental yields have also increased in Adelaide, now sitting around 3.93% according to CoreLogic. Rental price growth in Adelaide has continued to escalate with a 6.7% lift in rental prices over 12 months for houses, and a 9.8% increase for units. Interestingly, over 10 years rental rates for housing in Australia has grown by 49.9% and 46.2% for units, the second highest growth performance behind Hobart.

New figures show that inflation has slowed to a two-year low of 4.3% leading many to speculate that there will be no need for future interest rate rises.  

The Australian Bureau of Statistics figures for November show that inflation is down from 4.9% in October. This is down from a peak 8.4% in December 2022. The RBA is due to meet again in February and many analysts are predicting there will be no need for it to increase interest rates at that meeting following the better-than-expected inflation figures. The latest data means that prices are rising at their slowest rate since January ’22. 

The November inflation figure was lower than many economists were tipping with most believing it would be around four and a half percent. The RBA board kept the official cash rate steady at 4.35% in its final December meeting although the governor Michelle Bullock has not ruled out further increases this year it deemed necessary, hedging her bets. She said that whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame will depend on the data and the evolving assessment of risk. She also said that they are keeping a close eye on what is happening in the global economy and trends in domestic demand as well as wages growth.

New data shows that wages rose by 4% in the year to September ’23 which is the fastest rate of growth since 2009. I will keep you posted on all things property for from around Australia as 2024 progresses. We’re already halfway through January. Don’t forget to hit the like and subscribe button if you’re enjoying all the free content, and I will see you soon.

Bye.

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