November 2024 Property Update
Welcome to our November property update
Off the back of the US election result we have seen the sharemarket rise over the past week.
On the other hand, the Australian property market growth has softened in October, rising only 0.3%, which was the 21st cosecutive month of growth since the cycle commenced in February last year.
Sydney fell by 0.1%, which was the first monthly decline since January 2023, which was lead by a 0.6% fall in upper quartile house values, while Sydney’s lower quartile house and unit values both recorded a half a percent rise in values in October.
Brisbane grew by 0.7%, Adelaide increased 1.1% and Perth grew a further 1.4%. Melbourne on the other hand fell a further 0.2%.
Properties are taking longer to sell with the national median time on the market coming in at 33 days, up from 27 days this time last year and as a result vendors are now offering slight discounts on their properties, in addition to more properties being for sale, up 1.3% than the same time last year.
Rental growth continued to slow nationally, with rents up 5.8% over the 12 months to October, however vacancy rates are still tight, with the national vacancy rate at 1.8%, -1.5 percentage points below the pre-covid five-year average.
There has been a lot of discussion recently about winding back negative gearing and Capital Gains Tax (CGT) concessions for property investors. The Treasurer, Jim Chalmers has given a strong indication that negative gearing and CGT changes are off the table for now, as their modelling says it will not increase supply.
Almost 1 year into the governments planned 1.2M new homes in 5 years, the government is falling very short of their target.
The Reserve Bank of Australia (RBA) have left interest rates on hold, and whist unlikely rates will fall at the December RBA meeting, the consensus among economists is that interest rates will fall in 2025 if inflation can get back into the RBA’s target range.
We are seeing some good buying opportunities in the market at present, so if you are considering investing in property, please get in touch.
