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Investing in our capital cities, and the 2024-25 budget
Investing in our capital cities and the 2024-25 budget

In this latest property update, Kate Hill takes a look at the latest data around our capital cities, and unpacks the 2024-25 Federal Budget announcements related to the property sector.

It might seem like this macro view of the economy doesn’t apply to the everyday investor, but decisions made at the higher level absolutely can and do affect your investment property.

Find out in this important update from Adviseable’s Kate Hill.

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If you’d like entirely independent and unbiased advice that’s right for your unique situation and goals, then get in touch with us today.

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 fantastic hints and tips and area profiles.

Stay tuned today for all your latest property news.

Despite two years of continuous interest rate hikes, the Australian housing market

has shown a remarkable resilience, especially in capital city suburbs.

According to a report by CoreLogic, by the end of April twenty four, nearly forty four percent of these suburbs reached record high property values.

This trend is particularly notable given the challenging economic conditions which typically exert downward pressures on real estate markets.

CoreLogic’s analysis highlights that capital city suburbs have overall fared better than most regional areas where only thirty five percent of suburbs achieved record highs.

Now this disparity suggests that urban areas possess unique attributes or economic buffers that shield them from the full brunt of rate hikes.

Resilience in capital city suburbs can be attributed to several factors including a high demand for housing, limited supply, and the continued attractiveness of urban living.

For instance, Melbourne and Sydney have seen significant property value increases driven by factors such as robust employment opportunities, lifestyle amenities, and ongoing population growth.

In contrast, regional areas, despite some hitting record highs, have generally seen a more varied impact. The difference in performance between capital city and regional suburbs underscores the uneven effects of economic policies across different geographic areas.

This scenario also reflects broader trends in the Australian economy where larger urban and metropolitan regions often exhibit stronger economic fundamentals and more robust housing demand.

Not always. The findings suggest that while rate hikes pose significant challenges, certain segments of the housing market, particularly in major cities, continue to thrive against the odds.

Australia’s median rent has now hit six hundred and twenty seven dollars a week, although many tenants are paying more than that according to more new analysis by CoreLogic.

It says that the lowest median rent in Australia is five hundred and forty seven dollars per week in Hobart, while the highest is seven seventy per week in Sydney.

Rents are also rising in the regions with a median of five hundred and fifty dollars per week.

CoreLogic say that renters are being forced into more affordable peripheral housing markets as they become priced out of more desirable and central metropolitan locations.

In the capital cities, Perth has had the strongest rental growth up thirteen percent to six six nine per week in the past twelve months.

Melbourne was up nine percent to five hundred and eighty nine.

Sydney, nine percent to seven seventy, and Adelaide, nine percent to five eight nine.

Brisbane rents increased by eight and a half percent to six hundred and forty nine.

Darwin is up three and a half percent to six hundred and seventeen.

And Hobart was the only market where rents dropped in the past twelve months, which was down point two percent to five hundred and forty seven dollars a week.

Australia’s recent twenty twenty four federal budget includes several measures aimed at addressing the property market and housing affordability.

Funding for social housing.

The budget allocates nine point three billion dollars over five years for a new national agreement on social housing and homelessness.

This funding is designed to support the states and territories in increasing the supply of social housing and tackling homelessness.

Investment in housing.

The government plans to invest more than eleven billion dollars into housing across Australia.

This investment includes various initiatives aimed at increasing housing supply and affordability.

Historic underinvestment.

The Albanese government acknowledges a historic underinvestment in housing contributing to the current housing crisis.

The budget aims to address this through increased funding and initiatives. So, I mean, let’s see whether these actually do anything.

Rising construction costs.

Despite these investments, the budget has been criticized for not fully addressing the rising construction costs, which have increased by twenty seven and a half percent since the pandemic.

This issue remains a significant challenge for the property market.

Overall, the budget aims to improve housing affordability and supply through significant investments and support for social housing, but challenges such as those rising construction costs and anti investor policies throughout the states persist.

The number of residential property listings remains tight with SQM Research Data’s latest report showing a six point four percent fall in the past month.

There were two hundred and fifty six thousand properties listed nationally in March and two hundred and thirty nine thousand in April, although the April drop was probably a result of the school holidays and Easter.

They say that we are seeing a continued year on year rise at the national level.

The number of properties listed for sale is now five point six percent higher than it was at this time last year.

I’m not really seeing that.

I’ve gotta tell you.

The increase was not surprising driven by Melbourne with the largest increase in listings in the last twelve months of seventeen percent and Sydney up twelve percent.

New property listings, so properties that’s been listed within the past thirty days, also increased by ten percent over the last twelve months.

Victoria has, of course, introduced that new lower land tax threshold for all second property owners, which has in turn led to more investors and homeowners listing

their properties for sale because they’re sick of it.

As the realisation sets in for all market participants that an interest rate cut is not imminently coming, we expect market caution to build over the winter months,

and so do not at this time rule out some house price falls in our latest capital city for the second half of twenty twenty four, say SQM.

I will keep you all posted on things property from around Australia as our year progresses.

Don’t forget to hit like and subscribe if you are enjoying the content, and I will see you all again soon. Bye.

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 fantastic hints and tips and area profiles.

Stay tuned today for all your latest property news.

Despite two years of continuous interest rate hikes, the Australian housing market

has shown a remarkable resilience, especially in capital city suburbs.

According to a report by CoreLogic, by the end of April twenty four, nearly forty four percent of these suburbs reached record high property values.

This trend is particularly notable given the challenging economic conditions which typically exert downward pressures on real estate markets.

CoreLogic’s analysis highlights that capital city suburbs have overall fared better than most regional areas where only thirty five percent of suburbs achieved record highs.

Now this disparity suggests that urban areas possess unique attributes or economic buffers that shield them from the full brunt of rate hikes.

Resilience in capital city suburbs can be attributed to several factors including a high demand for housing, limited supply, and the continued attractiveness of urban living.

For instance, Melbourne and Sydney have seen significant property value increases driven by factors such as robust employment opportunities, lifestyle amenities, and ongoing population growth.

In contrast, regional areas, despite some hitting record highs, have generally seen a more varied impact. The difference in performance between capital city and regional suburbs underscores the uneven effects of economic policies across different geographic areas.

This scenario also reflects broader trends in the Australian economy where larger urban and metropolitan regions often exhibit stronger economic fundamentals and more robust housing demand.

Not always. The findings suggest that while rate hikes pose significant challenges, certain segments of the housing market, particularly in major cities, continue to thrive against the odds.

Australia’s median rent has now hit six hundred and twenty seven dollars a week, although many tenants are paying more than that according to more new analysis by CoreLogic.

It says that the lowest median rent in Australia is five hundred and forty seven dollars per week in Hobart, while the highest is seven seventy per week in Sydney.

Rents are also rising in the regions with a median of five hundred and fifty dollars per week.

CoreLogic say that renters are being forced into more affordable peripheral housing markets as they become priced out of more desirable and central metropolitan locations.

In the capital cities, Perth has had the strongest rental growth up thirteen percent to six six nine per week in the past twelve months.

Melbourne was up nine percent to five hundred and eighty nine.

Sydney, nine percent to seven seventy, and Adelaide, nine percent to five eight nine.

Brisbane rents increased by eight and a half percent to six hundred and forty nine.

Darwin is up three and a half percent to six hundred and seventeen.

And Hobart was the only market where rents dropped in the past twelve months, which was down point two percent to five hundred and forty seven dollars a week.

Australia’s recent twenty twenty four federal budget includes several measures aimed at addressing the property market and housing affordability.

Funding for social housing.

The budget allocates nine point three billion dollars over five years for a new national agreement on social housing and homelessness.

This funding is designed to support the states and territories in increasing the supply of social housing and tackling homelessness.

Investment in housing.

The government plans to invest more than eleven billion dollars into housing across Australia.

This investment includes various initiatives aimed at increasing housing supply and affordability.

Historic underinvestment.

The Albanese government acknowledges a historic underinvestment in housing contributing to the current housing crisis.

The budget aims to address this through increased funding and initiatives. So, I mean, let’s see whether these actually do anything.

Rising construction costs.

Despite these investments, the budget has been criticized for not fully addressing the rising construction costs, which have increased by twenty seven and a half percent since the pandemic.

This issue remains a significant challenge for the property market.

Overall, the budget aims to improve housing affordability and supply through significant investments and support for social housing, but challenges such as those rising construction costs and anti investor policies throughout the states persist.

The number of residential property listings remains tight with SQM Research Data’s latest report showing a six point four percent fall in the past month.

There were two hundred and fifty six thousand properties listed nationally in March and two hundred and thirty nine thousand in April, although the April drop was probably a result of the school holidays and Easter.

They say that we are seeing a continued year on year rise at the national level.

The number of properties listed for sale is now five point six percent higher than it was at this time last year.

I’m not really seeing that.

I’ve gotta tell you.

The increase was not surprising driven by Melbourne with the largest increase in listings in the last twelve months of seventeen percent and Sydney up twelve percent.

New property listings, so properties that’s been listed within the past thirty days, also increased by ten percent over the last twelve months.

Victoria has, of course, introduced that new lower land tax threshold for all second property owners, which has in turn led to more investors and homeowners listing

their properties for sale because they’re sick of it.

As the realisation sets in for all market participants that an interest rate cut is not imminently coming, we expect market caution to build over the winter months,

and so do not at this time rule out some house price falls in our latest capital city for the second half of twenty twenty four, say SQM.

I will keep you all posted on things property from around Australia as our year progresses.

Don’t forget to hit like and subscribe if you are enjoying the content, and I will see you all again soon. Bye.

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