April 2025 Property Update

This month has seen huge volatility in the sharemarket, with some investors looking to consider property again for the more consistent growth and returns. Australian property values reached new heights in March, reversing a recent downward trend in late 2024.

Values increased 0.4% over the month and all capital cities saw an increase except Hobart.

As expected, housing has featured prominently in the Federal election campaign with wide-ranging promises to appeal to first homebuyers, tenants and the younger cohort of voters, at the same time creating some uncertainty for the older generation with potential tax changes to superannuation balances or potentially taxing unrealised capital gains.

With so much current global uncertainty, It is widely anticipated that the RBA will lower interest rates at the May meeting.

Rental values are also at record highs, with the national rental index up a further 0.6% in March.

In annual terms, rental growth is slowing, easing from a cyclical peak of 9.7% in November 2021 to 3.8% over the past 12 months. Unit or apartment price growth has slowed faster than houses, albeit from a higher base.

Despite the slowdown in rental growth, the annual pace of change remains slightly above the pre-COVID decade average of 2.0%.

With the national vacancy rate, at 1.5%, it remains less than half the pre-COVID decade average of 3.3%, so I don’t see rents decreasing any time soon.

This is positive for investors, with yields increasing and loan repayments falling further.

With house prices looking to increase further in 2025, if you are considering investing in property or further growing your portfolio please click the link below to book a complimentary strategy call.

https://portersbuyersagency.zohobookings.com/#/portersinvestinitialcall