October Australian Property Market Update

As the country settles into the third quarter of 2023 and the spring selling season, everyone is watching property results with interest.

The latest trends and figures from ‘scorekeepers’ like the Bureau of Statistics and CoreLogic may influence your decisions about buying and/or selling over the next few months.

Here’s what has been happening in real estate across the nation over recent weeks:

September year-on-year figures from CoreLogic show that regional areas and most capital cities saw an annual rise in average values. The capitals that saw downturns were Hobart, Darwin and Canberra.

Here are the annual percentage changes for the nation’s capitals to September:

• Sydney:                      7.3%
• Melbourne:                1.5%
• Brisbane:                   5.0%
• Adelaide:                    5.0%
• Perth:                         8.8%
• Hobart:                       -7.0%
• Darwin:                       -2.2%
• Canberra:                   -3.0%

On average, dwelling values have risen by 3.9% in the last 12 months across the nation.

As CoreLogic also reported, the rolling 28-day change in the combined capital home value index was 0.8% in the 28 days ending October 8th. Overall, the growth trajectory for capital cities has slowed from a peak of 1.3% in June.

In terms of time on the market, the average for the September quarter remained at 30 days.

Paradoxically, while property prices continue to rise, there has also been a rise in loss-making resales, according to data collected by CoreLogic. This relates to people selling for less than they bought for.

While there is no certainty as to why this is happening, it seems likely that sellers are affected by rising interest rates and are okay with offloading their property so they can move away from increased mortgage costs.

If you are looking to make a purchase at the moment, this could work in your favour as you may be able to secure a well-priced property in an area where loss-making resales are on the rise. However, figures like this are also a reminder to think carefully about where you intend to buy and to do your research thoroughly.

Meanwhile, rental vacancies remain extremely tight around the country, hitting a new record low of 1.1% in September. Australian rent values increased 0.7% in September, taking the national annual increase to 8.4%.

Depending on where you are based, this means there are excellent opportunities to invest and lease a property with a strong rental yield. Gross rent yields were recorded at 3.71% nationally in September, up from 3.51% a year ago.

If you are already a rental property owner, now could be a good time to connect with your property manager and review the rent you are currently charging. If your tenants’ contacts are set to expire, there may be an opportunity to offset rising interest rates by updating the weekly rental fee.

Finally, reports say the building sector continues to struggle, with lending towards the construction or purchase of new homes down by 30.3% in the August quarter of 2023 when compared to the previous year.

Things are definitely tricky in the construction sector but if you own property, the outcome of this is that prices are expected to stay strong in 2024. While the Federal and State governments have announced new home-building initiatives, it will take some time for supply to catch up with demand.

So we are still seeing sellers’ markets in most parts of the country. If you’re planning a sale before Christmas and you have the right help to make it happen, it’s likely the outcome will be in your favour, so you can plan your next move with confidence.

Want to sell your home before the end of the year? Contact your local Professionals agent today.