Property Market Update April 2023

Written on the 5 May 2023

The facts:

• The combined value of residential real estate in Australia rose to $9.4 trillion at the end of March, from $9.3 trillion in the previous month.
• Dwelling values in Australia are -8.0% lower over the past 12 months, the largest annual decline on record.
• Capital city home values are taking longer to sell, with median days on market at 34. This is up from a low of 19 days in the three months to November 2021. Properties are taking notably longer to sell in regional Australia, with median days on market up to 50 in the three months to March.
• In the four weeks to 2 April 2023, the volume of new listings totalled 36,464 nationally. New listings have now moved through a seasonal peak, and are likely to trend lower through the cooler months of the year before rising in spring.
• The combined capital cities clearance rate averaged 65.4% in the four weeks ending 2 April 2023. While this was a much stronger result than in the final weeks of 2022 (averaging 55.1%), the combined clearance rate average did drop slightly on the previous four week period (65.8%).
• Annual growth in rent values held steady on the previous month in March, at 10.1%. The most rapid annual rise is evident in unit rents across Sydney, Melbourne and Brisbane, where rents have increased around 15 to 18% annually.
• The chart of the month shows the quarterly change in capital city house and unit values across different value tiers. An improvement in capital growth trends is most evident across the top 25% of home values.

Summary in brief from our end:

Despite the 10 straight interest rate increases from the Reserve Bank of Australia, which has seen official rates rise by 3.5 per cent, property prices have not only stopped falling, but they appear to be on the rise.

There may be more rate hikes ahead, but the analysis suggests there is light at the end of the tunnel and once interest-rates peak (and that may not be that far off), and once inflation peaks (and that's probably already happened) consumer confidence will return and the market will reset as a new property cycle begins.

But don't expect a rapid recovery - the next stage of the cycle is the stabilisation phase.

There is no end in sight for our rental crisis and rents will continue skyrocketing this year.

Our team has experienced some rapid results in both sales and leasing our facilities and property management team are well updated and striving to seek peak performance in management of the growing portfolio.

As EOFY approaches be sure to liase closely with your property manager and have all your expenses in both statutory, utilities as well as maintenance repair invoices in so you can claim in this financial year.

We wish you a successful EOFY close!

Sources:

Corelogic