October 2024 Property Update

Welcome to our October property update

In September the Australian residential property market reached a record value of $11 Trillion, with the annual pace of growth slowing to 6.7% for the past 12 months, down from the high of 9.7% in the 12 months to March.

Sydney, Brisbane, Adelaide and Perth dwelling values are all currently at a record high. Perth had the highest monthly, quarterly and annual dwelling value increase while Adelaide has overtaken Brisbane as the second strongest capital city market nationally.

In September Sydney increased by 0.2%, Brisbane by 0.9%, Perth by 1.6%. Melbourne is still continuing to fall. We are also seeing an increase in listings coming to market being spring, but also higher than the same period last year, with nationally being up 2.1%.

Annual growth in rent values slowed to 6.8% nationally, down from a recent high of 8.5% over the year to April, which is compressing yields further with the gross rental yield nationally sitting at 3.68%.

Dwelling approvals is down further, which will continue to put strain on the property market.

The Reserve Bank of Australia (RBA) have left interest rates on hold, and whist many were predicting interest rate falls late 2024, the general consensus among economists is that interest rates will not fall until 2025 or even 2026, due to underlying inflation still above the RBA’s target range.

Lending is increasing, with Investor lending up 1.4% month on month, and owner occupier lending increased 0.7% however I am seeing more first time buyers purchasing an investment property rather than an owner occupier property due to affordability issues where they desire to live.

I expect the market to continue to rise for the remainder of the year, so if you are considering a property purchase, please visit us at portersinvest.com.au.