Once again, every capital capital cities with gains of just 0.3% and 0.1%. saw positive growth in September, with Hobart and Canberra once again the best performers, increasing in value by 2.3% and 2.0%, respectively. Sydney, Adelaide, and Brisbane all saw strong growth of nearly 2%, while Perth and Darwin were the weakest
Regional Australia is also continuing to growth rate to 23.1% in what has been a stellar period for housing outside the big cities. and has outpaced its city counterparts for another month. In October, regional areas grew by 1.7%, taking the annual
Head of Research at CoreLogic, Tim Lawless, says that despite a solid 12 months, easing back from record-high levels. Existing homeowners looking to upgrade, downsize or move home may be less impacted as they have had the benefit of equity that has accrued as surged.”
Along with low-interest record rates, another key ingredient in the current of stock highlighted by very few properties listed for sale.
Although new low. Across the country, total advertised supply levels are -28.1% below the five-year average, and every capital city is of advertised supply.
Mr. Lawless says that even with listings rising; we’re still in a seller’s market. “Nationally, homes are selling in 35 days, up from 29 days in April, and strong selling conditions is the bounce back in auction clearance rates. Restrictions relating to one-on-one were eased mid-month across Melbourne and Canberra. By the end of September, the combined capitals clearance rate had returned to 80.5%, its highest since late March.” levels remain around record lows at -2.8%. Another factor pointing to
Thanks to the decisive period of capital growth, rental yields have reached new record lows . Gross profits across the combined capitals have fallen to 3.0% in September, with gross earnings in Sydney (2.5%) and Melbourne (2.8%) well below the other money., while regional Australia is higher at 4.4%.
CoreLogic suggests that, although yields are low, so too are investor mortgage rates. In July, the average three-year fixed rate for a new investor loan was 2.38%, while variable rates averaged 3.01%, suggesting opportunities for favorable cash flow outside of Sydney and Melbourne.
Positive Outlook for Property Prices
Overall, the trend for house remains positive, according to CoreLogic. Growth in housing values is being supported by an expectation that mortgage rates will stay at record lows for an extended period, while solid demand is occurring alongside persistently levels.
However, there are several factors on the horizon that investors need to be aware of. While the RBA has made it clear rates are likely to remain low for an extended period, we’ve recently heard from APRA (Australian Prudential Regulation Authority). They are looking at tighter debt-to-income ratios and the readdition of higher serviceability buffers, leading to more pressure on those seeking new loans.