September 2023 Property Update

Welcome to our September Property Update

Based upon current market forces, I expect the property market to increase further for the remainder of 2023.

Mortgage holders are excited to hear that the RBA (Reserve Bank) held the cash rate at 4.10% for the 3rd month in a row.

In August, capital cities dwelling values rose by 1%, up from 0.8% in July. National home values rose 2.5% in the 3 months to August, comprising an increase of 3.1% in the combined capitals and 0.8% in combined regionals.

Since bottoming out in February, the National Home Value Index (HVI) is up 4.9%.

In Sydney the dwelling values rose in August by 1.1%, bringing the quarter to a 3.8% increase, bringing it to 6.2% below the January 2022 record high.

In Brisbane the dwelling values rose by 1.5% in August and 4.2% for the quarter and now 5.5% below the June 2022 record high.

Adelaide and Perth are currently at record highs, whilst Hobart is 13% below the May 2022 record high and Darwin is still 11.2% below the May 2014 record high.

Canberra is 8.6% below the June 2022 record high.

Nationally sales volumes are down 17.1% over the past 12 months.

Rents increased a further 0.5% in August, taking the national annual increase to 9.0%.

Capital cities rent increases lead regional areas over the past 12 months, with Sydney up 11.8%,

Perth up 13.7% and Melbourne up 13%. Off the back of rental increases, yields continue to increase for investors.

Construction is down, with the number of projects moving into construction phase down 19.3% over the past year.

Dwelling approvals fell 8.1% through July, driven by a 19.9% fall in unit approvals.

The RBA believes that inflation has passed its peak and not expected to return to the target range until 2025, with unemployment expected to rise to 4.5% late next year.

Uncertainty will create opportunity, so if you are in the market to invest in property in the coming months, please get in touch.