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Written by Lily Chong, Head of IQI AustraliaCoreLogic’s national Home Value Index rose by 0.3% in February, signaling an end to a brief three-month downturn that had lowered home values by 0.4%. While the increase was modest, it was widespread, with most regions except Darwin (-0.1%) and Regional Victoria (flat) experiencing growth.Key trends include:Melbourne and Hobart lead gains: Both cities saw a 0.4% rise, reversing Melbourne’s ten-month streak of declining values.Mid-sized capitals slowing: Brisbane, Perth, and Adelaide, previously the strongest markets, recorded slower monthly growth (0.2%-0.3%). While Adelaide (1.2%) and Brisbane (0.9%) still lead quarterly gains, Perth’s growth has decelerated to 0.3%.Premium market rebound: Sydney and Melbourne’s upper-tier housing markets, which faced sharp declines, are now driving growth, consistent with past trends of high-value markets responding first to rate cuts.CoreLogic’s research director, Tim Lawless, attributes the market improvement to rising buyer confidence, influenced by expectations of lower interest rates, rather than increased borrowing capacity. Auction clearance rates have also returned to long-term averages, further indicating improved market sentiment.In February, national rents increased by 0.6%, marking the strongest monthly rise since May last year. However, this remains below the 0.9% increase recorded in February 2023 and the 1.2% surge in February 2021 during the rental boom.Key trends:Seasonal influence: Rental growth typically accelerates in the first quarter due to seasonal patterns, rather than underlying market shifts.Annual growth slowing: Over the past 12 months, rents have risen by 4.1%, the slowest annual increase since early 2021. Despite this, the growth rate remains double the pre-pandemic average of 2.0%.Declining growth in key cities: Darwin saw the sharpest slowdown, with annual rent growth dropping from a peak of 25% during the pandemic to just 1.4%. Sydney, Melbourne, and Brisbane unit rents have also slowed significantly, with annual growth now at 2.7%, 3.2%, and 3.3%, respectively—down from peaks above 15%.Impact of migration and household changes: The easing of net overseas migration and a shift towards larger households have reduced rental demand, especially in major cities.Rental growth in some markets: Hobart, the ACT, and Darwin’s unit market have experienced slight rental growth improvements compared to last year, albeit from previously weak conditions.CoreLogic’s Tim Lawless attributes the overall slowdown to normalizing migration trends and changing household sizes, which have alleviated some pressure on the rental market.FOR MORE UPDATE NEWSLATTER, CLICK HERE!

Written by Lily Chong, Head of IQI Australia The start of the year saw national dwelling values remain steady, with only a slight dip of 0.03% in January. While capital cities experienced a collective 0.2% decline, regional areas continued to grow, reaching new record highs with a 0.4% increase. Among the capital cities, Melbourne led the declines with a 0.6% drop, followed by the ACT (-0.5%) and Sydney (-0.4%). In contrast, Brisbane and Perth maintained growth, though at a slower pace, particularly in the detached housing market. Perth’s quarterly growth rate eased from 7.1% in June 2024 to just 1.0% in the three months to January. Meanwhile, Adelaide remained resilient, leading capital city growth over the past six months with a 4.8% increase. On an annual scale, national home value growth slowed significantly, dropping from a 9.7% peak in February 2024 to 4.3% in January. Melbourne (-3.3%), the ACT (-0.5%), and Hobart (-0.4%) recorded yearly declines, while Sydney posted a modest 1.7% gain—the lowest since June 2023. Regional Victoria was the only broad regional area to see a decline over the past year (-2.6%) . Perth Property Market SnapshotPerth’s housing market remains strong, with the median house sale price rising by 1.4% in January to $750,000—an impressive 23% increase year-on-year. Units also saw positive movement, with the median price increasing by 1.0% to $500,000, reflecting a 20.5% annual rise.According to REIWA CEO Cath Hart, property prices are still on an upward trajectory but at a more measured pace compared to 2024. She noted that while some buyers are taking their time with purchasing decisions, well-presented homes in desirable locations continue to attract strong interest and sell quickly. Sellers are encouraged to set realistic prices and focus on presentation to maximize their chances in the current market. Perth Rental Market TrendsRental prices in Perth also increased, with the median dwelling rent rising 3.1% in January to $670 per week—up 8.9% from a year ago. House rents increased by 1.5% to $680 per week, marking a 6.3% annual rise, while unit rents remained steady at $650 per week, up 12.1% year-on-year.Ms. Hart highlighted that while monthly rent prices continue to fluctuate, the significant slowdown in annual growth rates suggests a more moderate rental market compared to last year. A year ago, annual rental growth was 18.3% for dwellings, 16.4% for houses, and 20.8% for units.For more global update. Click here

Residential property prices across Australia are expected to grow modestly by 3% in 2025, supported by potential interest rate cuts that could rejuvenate a cooling market, according to a survey by The Australian Financial Review. As 2024 concluded, a slowdown in the market became evident, with national residential prices dipping by 0.1% in December — the first decline in nearly two years. Sydney saw a modest 2.3% rise for the year, while Melbourne’s prices dropped by 3%, reflecting challenges such as high borrowing costs and an abundance of properties for sale.Diverging Market DynamicsJo Masters, Chief Economist at Barrenjoey, forecasts further declines in Sydney and Melbourne over the first half of 2025, with prices stabilizing and gaining momentum later in the year. “Rate cuts and real income growth will drive improvement in the second half of the year, though prices are unlikely to fall overall for 2025,” she said. While the projected 3% national growth rate for 2025 marks a slowdown compared to last year’s 4.9% increase, smaller capitals like Perth, Adelaide, and Brisbane, which experienced growth of 19.1%, 13.1%, and 11.2%, respectively, are also expected to cool as affordability challenges mount.Auction Clearance Rates as an IndicatorAuction clearance rates, which hovered just above 50% by the end of 2024, signal ongoing market weakness, especially in Sydney and Melbourne. High stock levels in these cities further contribute to subdued price growth, with borrowing constraints likely to persist until mid-2025 when the first rate cuts are expected.Regional Variations and Buyer BehaviorPredictions for 2025 reveal varied outcomes across the country:Perth: Forecast to lead with price increases of up to 10%.Sydney and Melbourne: Growth remains subdued, with Sydney expected to rise by just 0.6%, and Melbourne potentially seeing a slight decline of 0.5%.Brisbane and Adelaide: Moderate growth of 4% to 6%.Experts, including Domain’s Chief of Research, Nicola Powell, suggest that even a single rate cut could spark renewed buyer activity, fueled by FOMO (fear of missing out) as affordability improves. This urgency may be particularly evident in areas with limited housing supply.Challenges AheadHowever, economic uncertainties — including geopolitical tensions, a potential global recession, and subdued domestic business investment — may dampen confidence, especially in higher-end markets sensitive to volatility.Long-Term OutlookWith affordability at its lowest level since 2008 and nearly half of gross household income required to service a mortgage, the market’s recovery will depend on how soon rate cuts occur and their impact on borrowing power. While Perth and Adelaide are positioned to benefit most, high-price capitals like Sydney and Melbourne may faceslower recovery due to existing affordability constraints.Domain projects national price growth between 4% and 6%, with Perth leading gains and some regional markets, such as those in Victoria, potentially seeing declines of up to 5%. As the housing market enters 2025, it is poised to navigate a delicate balance of interest rate adjustments, affordability pressures, and varying local market conditions.For more update newsletter, click here!

This article is contributed by Lily Chong, Head of IQI Australia, who brings nearly 13 years of real estate expertise and a commitment to uplifting professionals globally.In September, Australia’s dwelling values experienced a modest increase of 0.4%, similar to the 0.3% growth in July and August, signaling a continued slowing of momentum. Nationally, housing values rose by 1.0% in the September quarter, marking the smallest quarterly rise in the Home Value Index (HVI) since March 2023, when the market first began its current upward trend.Interestingly, four capital cities saw a decline in dwelling values during this period. Melbourne led with a 1.1% drop, followed by Canberra, Hobart, and Darwin. In contrast, Perth experienced the highest growth at 4.7%. Sydney maintained positive growth, but its 0.5% rise in the September quarter was the slowest since February 2023.Meanwhile, mid-sized capitals, which had been leading in capital gains, are also starting to slow. Adelaide’s growth appears to be plateauing at 4.0%, while Brisbane recorded its lowest quarterly rise (2.7%) since April 2022. Perth’s property market Spring selling season has kicked off with a notable increase in active listings, rising by 8.4% in September and reaching 3,952 by month-end.According to REIWA CEO Cath Hart, the Spring season has brought a boost in new listings, as anticipated. “Spring is traditionally one of the busiest times for sales, and our members are seeing more properties come to market, with new listings outpacing sales over the past month,” she shared.Despite this increase in listings, properties are still selling quickly, keeping active listings relatively low. Compared to this time last year, active listings are down 19.0%, though this represents a marked improvement. Between November 2023 and May 2024, listing volumes were 40% lower year-on-year, with every month since May still showing a 30% decline compared to the previous year.These trends highlight the continued strength of the Perth market despite low stock availability.Are you curious about market insights in other countries? Download the file to discover more!DownloadData extracted in September 2024