Hello, everyone.

How are you all doing out there?

I’m Kate Hill bringing you the best and unbiased and honest content on property along with fantastic hints and tips, area reports, all sorts of stuff.

Stay tuned today for all your latest property news.

Australia’s recent share market dive has reinforced the nation’s property market as being a safe haven when shares do take that dive.

More than one hundred and sixty billion dollars was wiped off the value of the Australian share market in just two days following fears about the US economy and a potential recession.

Stocks closed down nearly four percent, which is the biggest fall since the pandemic era.

At the same time, new figures from CoreLogic show just how stable the Australian property market is and has been.

CoreLogic figures show that the national home values rose point five percent in July, which was the eighteenth consecutive monthly increase in home values nationally.

During the quarter, values are up by one point seven percent.

CoreLogic says that values have consistently pushed to new record highs since November twenty twenty three.

Despite the national rise, three capital cities did record a decline in median values in the past quarter,

although nowhere near as significant, a decline, of course, as the share market.

Melbourne’s values were down point nine percent, Hobart point eight, Darwin point three.

Perth values increased by two percent during that quarter.

Adelaide was up one point three, Brisbane one point one, Sydney point three.

Westpac Private Bank’s inaugural Prestige Property Report says that prestige property is now considered a critical asset class.

Housing finance is sitting above decade averages in almost every area of Australia.

CommSec’s State of the State report says that it is up by thirty seven point eight percent in WA,

thirty two percent in Queensland, nearly twenty percent in South Australia, fourteen percent in Victoria,

fourteen percent in New South Wales, eight percent in Tasmania, three percent in the ACT.

It is down by seven percent in the Northern Territories.

PEXA’s latest mortgage insights report says a total of five hundred nine thousand new property related loans were issued in the financial year, a six percent increase on the previous year, while refinancing was down by nearly twelve percent.

The ABS monthly lending figures show that investors are continuing to charge into the market.

The June lending indicators data shows that the total value of new investor loans was thirty percent year on year.

The Housing Industry Association economists say that the market as a whole is very active. I agree.

It’s madness out there.

Various segments of the housing markets are increasingly active with lending to first home buyers, owner occupiers, and investors increasing in the first half of twenty twenty four.

The number of loans issued for the purchase and construction of a new home has been steadily increasing since the start of twenty twenty four from a very low base.

We have already reported on that a couple of weeks ago.

Now after a brief slowdown, construction costs in Australia are once again on the rise, reversing last year’s trend.

While the cost of building a new home increased by over twenty percent in the twelve months to September twenty two, the growth rate has slowed to four percent by September twenty three.

However, recent data shows an alarming resurgence in cost increases impacting housing supply and affordability nationwide.

Labour shortages, particularly in finishing trades and year on year wage hikes remain key drive drivers of this cost surge.

The Australian Bureau of Statistics highlights strong union activity as a factor contributing to low productivity, further exacerbating costs.

Though the prices of some building materials like timber and steel have decreased, costs for essentials like bricks, plaster, and copper continue to rise.

Copper prices driven by demanding green energy and electric vehicles, for example, are particularly concerning. The escalating construction costs are widening the price gap between new and existing homes, contributing to fewer new builds and pushing up existing property prices across Australia, especially in the residential sector.

Now a recent article published in Your Investment Property magazine, which you’ll see blended in here, discusses the current state of Melbourne’s property market, addressing concerns that the city may be losing its appeal.

It explores the factors that have contributed to the recent underperformance of the property market compared to other major Australian cities.

Key issues include a significant slowdown in property price growth, an exodus of both investors and residents, and rising vacancy rates.

The article attributes these challenges to a range of factors including stricter regulations, higher property taxes, policies that favour tenants, not investors.

They have discouraged investors.

The lingering impact of the COVID nineteen pandemic of course with its extended lockdowns in Melbourne has also played a role leading to a population decline as people moved to regional areas or other states with fewer restrictions.

Despite these challenges, the article does note that there are still opportunities in the Melbourne market for savvy investors.

Some areas are showing signs of huge resilience, and long term prospects do remain positive.

A full recovery was likely to depend, of course, on broader economic factors like employment, growth, population increase, government policies aimed at revitalising the cities.

So while Melbourne is facing headwinds in its property market, it may be too early to write it

off completely. Don’t write it off.

The city’s long term fundamentals, including its status as a cultural and economic hub, suggest that it will  eventually rebound, although those challenges, of course, remain for a little while yet.

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

Don’t forget to hit the like and subscribe button if you’re enjoying all the free content, and I will see you all again very soon.

Bye.

Hello, everyone.

How are you all doing out there?

I’m Kate Hill bringing you the best and unbiased and honest content on property along with fantastic hints and tips, area reports, all sorts of stuff.

Stay tuned today for all your latest property news.

Australia’s recent share market dive has reinforced the nation’s property market as being a safe haven when shares do take that dive.

More than one hundred and sixty billion dollars was wiped off the value of the Australian share market in just two days following fears about the US economy and a potential recession.

Stocks closed down nearly four percent, which is the biggest fall since the pandemic era.

At the same time, new figures from CoreLogic show just how stable the Australian property market is and has been.

CoreLogic figures show that the national home values rose point five percent in July, which was the eighteenth consecutive monthly increase in home values nationally.

During the quarter, values are up by one point seven percent.

CoreLogic says that values have consistently pushed to new record highs since November twenty twenty three.

Despite the national rise, three capital cities did record a decline in median values in the past quarter,

although nowhere near as significant, a decline, of course, as the share market.

Melbourne’s values were down point nine percent, Hobart point eight, Darwin point three.

Perth values increased by two percent during that quarter.

Adelaide was up one point three, Brisbane one point one, Sydney point three.

Westpac Private Bank’s inaugural Prestige Property Report says that prestige property is now considered a critical asset class.

Housing finance is sitting above decade averages in almost every area of Australia.

CommSec’s State of the State report says that it is up by thirty seven point eight percent in WA,

thirty two percent in Queensland, nearly twenty percent in South Australia, fourteen percent in Victoria,

fourteen percent in New South Wales, eight percent in Tasmania, three percent in the ACT.

It is down by seven percent in the Northern Territories.

PEXA’s latest mortgage insights report says a total of five hundred nine thousand new property related loans were issued in the financial year, a six percent increase on the previous year, while refinancing was down by nearly twelve percent.

The ABS monthly lending figures show that investors are continuing to charge into the market.

The June lending indicators data shows that the total value of new investor loans was thirty percent year on year.

The Housing Industry Association economists say that the market as a whole is very active. I agree.

It’s madness out there.

Various segments of the housing markets are increasingly active with lending to first home buyers, owner occupiers, and investors increasing in the first half of twenty twenty four.

The number of loans issued for the purchase and construction of a new home has been steadily increasing since the start of twenty twenty four from a very low base.

We have already reported on that a couple of weeks ago.

Now after a brief slowdown, construction costs in Australia are once again on the rise, reversing last year’s trend.

While the cost of building a new home increased by over twenty percent in the twelve months to September twenty two, the growth rate has slowed to four percent by September twenty three.

However, recent data shows an alarming resurgence in cost increases impacting housing supply and affordability nationwide.

Labour shortages, particularly in finishing trades and year on year wage hikes remain key drive drivers of this cost surge.

The Australian Bureau of Statistics highlights strong union activity as a factor contributing to low productivity, further exacerbating costs.

Though the prices of some building materials like timber and steel have decreased, costs for essentials like bricks, plaster, and copper continue to rise.

Copper prices driven by demanding green energy and electric vehicles, for example, are particularly concerning. The escalating construction costs are widening the price gap between new and existing homes, contributing to fewer new builds and pushing up existing property prices across Australia, especially in the residential sector.

Now a recent article published in Your Investment Property magazine, which you’ll see blended in here, discusses the current state of Melbourne’s property market, addressing concerns that the city may be losing its appeal.

It explores the factors that have contributed to the recent underperformance of the property market compared to other major Australian cities.

Key issues include a significant slowdown in property price growth, an exodus of both investors and residents, and rising vacancy rates.

The article attributes these challenges to a range of factors including stricter regulations, higher property taxes, policies that favour tenants, not investors.

They have discouraged investors.

The lingering impact of the COVID nineteen pandemic of course with its extended lockdowns in Melbourne has also played a role leading to a population decline as people moved to regional areas or other states with fewer restrictions.

Despite these challenges, the article does note that there are still opportunities in the Melbourne market for savvy investors.

Some areas are showing signs of huge resilience, and long term prospects do remain positive.

A full recovery was likely to depend, of course, on broader economic factors like employment, growth, population increase, government policies aimed at revitalising the cities.

So while Melbourne is facing headwinds in its property market, it may be too early to write it

off completely. Don’t write it off.

The city’s long term fundamentals, including its status as a cultural and economic hub, suggest that it will  eventually rebound, although those challenges, of course, remain for a little while yet.

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

Don’t forget to hit the like and subscribe button if you’re enjoying all the free content, and I will see you all again very soon.

Bye.

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