Welcome to our May Property Update
With the Federal Election now behind us, we can move forward knowing who will govern us Federally for the next 3 years and hopefully deliver upon their many promises.
The big news this month was the RBA raising the Official Interest rate by 25 basis points from the low of 0.1% to 0.35%. I expect to see more rises this year to enable underlying inflation to get back into the target range.
In April we saw house prices in Sydney fall by 0.2%, bringing the quarter being down by 0.5%, yet still up by 14.7% for the past year.
Brisbane however experienced a 1.7% increase in April, up 5.7% for the quarter and now a 29.3% increase for the year. Adelaide has experienced similar growth to Brisbane
Brisbane, Adelaide, Canberra and Perth property prices are currently at record highs.
Sydney is off the record highs by 0.5%. Melbourne is down by 0.1%, Hobart is down 0.3% on record high
Darwin is down 12.5% on their record high recorded in May 2014
Property is taking longer to sell, with the Days On Market increasing from a medium of 21 days in the 3 months to December 2021, to 27 days over the April quarter
Australia wide, new properties listed for sale is 9.8% lower than this time last year across Australia and 20.8% for Sydney, however with the election now past, I expect more properties to come to market
Residential rents are up 9% in Sydney, 10.7% in regional NSW and 11.1% in Brisbane. I expect to see further demand on rentals as overseas arrivals rebound.
The average rental yield for Sydney is now 2.5% and 3.2% nationally
I am expecting to see more investors and first homebuyers now enter the market.
Please get in touch should you have any questions