Welcome to our April edition of the Property Market Update. As we step into another month, let’s delve into the latest trends and figures shaping our market.
National Home Value Index Continues to Rise
For the 14th consecutive month, the National Home Value Index (HVI) has observed an uptick. In March, we saw a modest national increase of 0.6%. Perth took the lead with a significant rise of 1.9%, followed by Adelaide with 1.4%, and Brisbane by 1.1%.
Quarterly and Annual Insights
Looking at the quarterly data:
– Nationally, house prices rose by 1.6%.
– Perth demonstrated robust growth at 5.6%, with Adelaide at 3.3% and Brisbane at 3.0%.
– Sydney showed a slight increase of 0.09%.
Over the past year:
– House prices nationally surged by 8.8%.
– Capital cities led with a 9.7% increase, while combined regional areas grew by 6%.
– Perth again stands out with an extraordinary annual growth of 19.8%, followed by Brisbane at 15.9%.
– Conversely, Melbourne experienced a downturn, with Hobart, Darwin, and Canberra remaining relatively flat.
Economic Indicators and Market Drivers
Unemployment Rate: The latest figures show a drop to 3.7%, surpassing expectations of 4%.
Interest Rates: The cash rate holds steady at 4.35%. The Reserve Bank of Australia (RBA) will convene again in early May.
Rental Market: Rents continue to climb, with freestanding homes in Perth up by 13.7%, Sydney by 9.1%, and Brisbane by 7.6%.
Future Outlook
We expect a continued positive trajectory in house prices, one reason being the construction sector is lagging, with only 163,000 properties built in 2023—well below the government’s target of 240,000 per year to meet the anticipated demand of 1.2 million new homes over the next five years.
Additionally, the record influx of over 100,000 permanent and long-term arrivals last month—a nearly 20% increase over the previous record—further escalates pressure on both house prices and rental markets.
There are still good buying opportunities, so if you are considering purchasing an investment property, please email me or click on this link to book a call, so we can build a strategy to achieve your financial goals with property.
