Buyer's Agents | Property Investors | Home Buyers | Adviseable

When will property prices start to increase in Australia?
When will property prices start to increase in Australia

Kate Hill examines the states and capital cities to show how property prices are increasing again! Is now the ideal time to purchase an investment property?

If you’ve enjoyed this video then you might like to subscribe to our YouTube channel, or browse through our latest videos.

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 everybody out there how are you all doing? I’m Kate Hill bringing you the best and unbiased and honest content on property along with some fantastic hints and tips and location reports. Stay tuned today for all your latest property news.

[Music] CoreLogic’s recent home value index indicates a national rise of 0.6% in housing values for the month across Australia. This growth reflects improved sentiment in the housing market.

The upswing in housing values has persisted into 2024 with the HVI showing a 0.4% increase in January indicating current trend of growth.

Perth continues to stand out with a substantially higher rate of growth compared to any other region up 1.8% over the month, and I’m not surprised people are throwing stupid money at some properties over there. Adelaide is up 1.1% Brisbane 0.9, the regional areas of South Australia 1.1. WA and Queensland both 1%.

Also show a consistently high rate of capital growth month to- month. Now these regions are generally benefiting from a combination of comparatively lower housing prices and positive demographic factors that continue to support housing demand, CoreLogic said.

Although growth rates in Sydney and Melbourne home values have leveled out, the monthly trend has accelerated with Melbourne emerging from a three-month slump of negative monthly movements to record a very subtle 0.1% rise in February.

Similarly Sydney dwelling values have moved back into positive territory over the past two months after recording a subtle decline in November and December.

Despite challenges posed by the Covid-19 pandemic housing trends have been resilient. The report also suggests that the lower quartile home values are experiencing faster growth compared to the upper quartile values reflecting changing dynamics in the market with rising interest rates of course.

Now overall the housing market is defying some economic indicators. Who knew.

Potentially influenced by factors like the interest rates and market sentiment the landscape of Australian housing is experiencing a notable transformation with a significant increase in the number of individuals opting for long-term apartment living.

Now this shift is driven by several factors including the widening gap between house and unit prices as highlighted by a report in Domain.

According to them while there has been a price disparity between houses and units the current extent of this gap suggests either overvaluation of houses or undervaluation of units.

This trend underscores a distortion in the housing market particularly evident since the onset of the pandemic.

As houses become increasingly unaffordable there is a notable re-evaluation of the ideal long-term home among Australians.

Domain emphasised that the need to reconsider traditional notions of home ownership particularly the dream of owning a detached house on a spacious block of land.

This sentiment is echoed by the University of New South Wales who observe a growing preference for apartment living over houses.

The allure of apartments extends beyond affordability with proximity to work, transportation, urban amenities, all playing a pivotal role in driving this trend.

UNSW research highlights the appeal of apartments for buyers seeking convenience and accessibility in their daily lives and as cities experience a shift towards higher density living the demand for apartments is expected to escalate further.

The rise in long-term apartment living signifies a significant evolution in Australian housing preferences with affordability concern and changing societal dynamics shaping the housing market, apartments emerge as a viable and attractive options for many Australians seeking a modern and convenient lifestyle.

Rents have risen so substantially in some locations that it is actually cheaper to make weekly mortgage repayments than rent in some of these locations.

Analysis by PropTrack found 340 house markets and 261unit markets which offer cheaper weekly mortgage repayments than typical rents.

Australia’s median rent is $550 over the past year according to PropTrack.

Assuming a 20% deposit and a 6.2% interest rate a property would need to be priced less than $447,000 for repayments to be less than $550 a week.

Now in Sydney unit markets in Lakemba, Wiley Park and Punchbowl met those criteria while in Melbourne unit markets including Carlton, Flemington and West Footscray was suitable.

In the Brisbane area house markets in North Booval and East Ipswich were cheaper to buy than rent.

In Adelaide house markets in Devon Park or Devo as we lovingly call it and Smithfield Plains were cheaper to buy, and in Perth it was Camillo and Armadale.

Tasmania’s Bridgewater and Risden Vale house markets were cheaper to buy than rent and in Darwin there were plenty of options including Darwin City and Nightcliff. CoreLogic’s 2024 women and property report highlights the significance of property ownership for Generation Z women in Australia.

Gen Z typically includes individuals born between the mid to late 1990s so this is, this places the oldest members of Gen Z in their late 20s or early 30s as of 2024, while the youngest members are still only in their early teens. The report emphasizes that property ownership is a priority

for Gen Z women indicating a strong desire for home ownership among this demographic group.

This aligns with broader societal trends where younger generations aspire to own property as a form of financial security and stability. Despite the desire for property ownership affordability remains a significant challenge for Gen Z women.

High housing prices and limited affordability options pose barriers to entry into the property market. Now this challenge reflects broader concerns of course in the Australian housing market regarding affordability issues.

The report also highlights that gender disparity in property ownership rates with a lower proportion of Gen Z women compared to men owning property this gap may stem from differences in income between genders and other socioeconomic factors.

Addressing gender disparities and property ownership is crucial for achieving greater gender equality.

Additionally the report identifies investment as another significant hurdle for Gen Z women in the property market.

Limited financial resources and investment knowledge may hinder their ability to enter the property market as investors.

Overcoming these hurdles requires targeted efforts to provide support and resources for young women interested in property investment. So overall while property ownership is a priority for Gen Z women in Australia those challenges related to affordability and investment pose significant barriers.

Addressing these is essential to ensure greater access to property ownership and financial security for this demographic group. Now of course I will keep you posted on all things property from around Australia as our year progresses.

Don’t forget to hit the like and subscribe buttons if you are enjoying all my free content and I will see you all again very soon.

Bye

Hello everybody out there how are you all doing? I’m Kate Hill bringing you the best and unbiased and honest content on property along with some fantastic hints and tips and location reports. Stay tuned today for all your latest property news.

[Music] CoreLogic’s recent home value index indicates a national rise of 0.6% in housing values for the month across Australia. This growth reflects improved sentiment in the housing market.

The upswing in housing values has persisted into 2024 with the HVI showing a 0.4% increase in January indicating current trend of growth.

Perth continues to stand out with a substantially higher rate of growth compared to any other region up 1.8% over the month, and I’m not surprised people are throwing stupid money at some properties over there. Adelaide is up 1.1% Brisbane 0.9, the regional areas of South Australia 1.1. WA and Queensland both 1%.

Also show a consistently high rate of capital growth month to- month. Now these regions are generally benefiting from a combination of comparatively lower housing prices and positive demographic factors that continue to support housing demand, CoreLogic said.

Although growth rates in Sydney and Melbourne home values have leveled out, the monthly trend has accelerated with Melbourne emerging from a three-month slump of negative monthly movements to record a very subtle 0.1% rise in February.

Similarly Sydney dwelling values have moved back into positive territory over the past two months after recording a subtle decline in November and December.

Despite challenges posed by the Covid-19 pandemic housing trends have been resilient. The report also suggests that the lower quartile home values are experiencing faster growth compared to the upper quartile values reflecting changing dynamics in the market with rising interest rates of course.

Now overall the housing market is defying some economic indicators. Who knew.

Potentially influenced by factors like the interest rates and market sentiment the landscape of Australian housing is experiencing a notable transformation with a significant increase in the number of individuals opting for long-term apartment living.

Now this shift is driven by several factors including the widening gap between house and unit prices as highlighted by a report in Domain.

According to them while there has been a price disparity between houses and units the current extent of this gap suggests either overvaluation of houses or undervaluation of units.

This trend underscores a distortion in the housing market particularly evident since the onset of the pandemic.

As houses become increasingly unaffordable there is a notable re-evaluation of the ideal long-term home among Australians.

Domain emphasised that the need to reconsider traditional notions of home ownership particularly the dream of owning a detached house on a spacious block of land.

This sentiment is echoed by the University of New South Wales who observe a growing preference for apartment living over houses.

The allure of apartments extends beyond affordability with proximity to work, transportation, urban amenities, all playing a pivotal role in driving this trend.

UNSW research highlights the appeal of apartments for buyers seeking convenience and accessibility in their daily lives and as cities experience a shift towards higher density living the demand for apartments is expected to escalate further.

The rise in long-term apartment living signifies a significant evolution in Australian housing preferences with affordability concern and changing societal dynamics shaping the housing market, apartments emerge as a viable and attractive options for many Australians seeking a modern and convenient lifestyle.

Rents have risen so substantially in some locations that it is actually cheaper to make weekly mortgage repayments than rent in some of these locations.

Analysis by PropTrack found 340 house markets and 261unit markets which offer cheaper weekly mortgage repayments than typical rents.

Australia’s median rent is $550 over the past year according to PropTrack.

Assuming a 20% deposit and a 6.2% interest rate a property would need to be priced less than $447,000 for repayments to be less than $550 a week.

Now in Sydney unit markets in Lakemba, Wiley Park and Punchbowl met those criteria while in Melbourne unit markets including Carlton, Flemington and West Footscray was suitable.

In the Brisbane area house markets in North Booval and East Ipswich were cheaper to buy than rent.

In Adelaide house markets in Devon Park or Devo as we lovingly call it and Smithfield Plains were cheaper to buy, and in Perth it was Camillo and Armadale.

Tasmania’s Bridgewater and Risden Vale house markets were cheaper to buy than rent and in Darwin there were plenty of options including Darwin City and Nightcliff. CoreLogic’s 2024 women and property report highlights the significance of property ownership for Generation Z women in Australia.

Gen Z typically includes individuals born between the mid to late 1990s so this is, this places the oldest members of Gen Z in their late 20s or early 30s as of 2024, while the youngest members are still only in their early teens. The report emphasizes that property ownership is a priority

for Gen Z women indicating a strong desire for home ownership among this demographic group.

This aligns with broader societal trends where younger generations aspire to own property as a form of financial security and stability. Despite the desire for property ownership affordability remains a significant challenge for Gen Z women.

High housing prices and limited affordability options pose barriers to entry into the property market. Now this challenge reflects broader concerns of course in the Australian housing market regarding affordability issues.

The report also highlights that gender disparity in property ownership rates with a lower proportion of Gen Z women compared to men owning property this gap may stem from differences in income between genders and other socioeconomic factors.

Addressing gender disparities and property ownership is crucial for achieving greater gender equality.

Additionally the report identifies investment as another significant hurdle for Gen Z women in the property market.

Limited financial resources and investment knowledge may hinder their ability to enter the property market as investors.

Overcoming these hurdles requires targeted efforts to provide support and resources for young women interested in property investment. So overall while property ownership is a priority for Gen Z women in Australia those challenges related to affordability and investment pose significant barriers.

Addressing these is essential to ensure greater access to property ownership and financial security for this demographic group. Now of course I will keep you posted on all things property from around Australia as our year progresses.

Don’t forget to hit the like and subscribe buttons if you are enjoying all my free content and I will see you all again very soon.

Bye

DISCLAIMER: No Legal, Financial & Taxation Advice

The Listener acknowledges and agrees that:

  • Any information provided by us is provided as general information and for general information purposes only;
  • We have not taken the Listeners’ personal and financial circumstances into account when providing information;
  • We must not and have not provided legal, financial or taxation advice to the Listener;
  • The information provided must be verified by the Listener before the Listener acting or relies on the information by an independent professional advisor, including a legal, financial, taxation advisor and the Listener’s accountant;
  • The information may not be suitable or applicable to the Listener’s circumstances;
  • We do not hold an Australian Financial Services Licence as defined by section 9 of the Corporations Act 2001 (Cth). We are not authorised to provide financial services to the Listener and have not provided financial services to the Listener.

More
articles

Scroll to Top