Australian Property Market Update – Latest Data, State by State November 12th 2024

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Australian Property Market Update – Latest Data, State by State November 12th 2024

The number of private property investors in Australia is declining, with latest data indicating a large reduction.

This trend will exacerbate Australia’s rental scarcity and raise rents.

Rising interest rates, regulatory restrictions, rising taxes, and high compliance costs have prompted many investors to sell or postpone further investment, with a particular impact in Victoria due to higher land taxes and rigors tenancy requirements.

For decades, private investors have provided more than 90% of Australia’s rental housing, with the proportion of taxpayers declaring rental income quadrupling from 5% in 1980 to 21% by 2014, but recent data show a significant drop in their numbers, posing a real threat to an already stressed market.

The total number of property investors fell to 2.29 million in 2021-22 from 2.39 million in 2019-20.

Unsurprisingly, with fewer private investors, rental properties are in limited supply, forcing rents to rise and vacancy rates to fall below 1% in some places.

To entice investors to return to the market, I believe we need policy stability, lower regulatory and tax burdens, and new rental property purchasing incentives.

These adjustments may restore investor confidence and reduce pressure on the rental supply.

Without significant legislative changes that benefit private investors, Australia’s rental issue will worsen.

In our opinion, increasing private investment is critical for creating a stable, balanced rental market capable of providing long-term, affordable housing to all Australians.

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On the auction front… 2,820 auctions were staged last week, the second-highest volume of the spring season to date and the fifth-highest volume of auctions through 2024 thus far.

The preliminary auction clearance rate came in at 65.8% across all capitals.

According to our analysis, this is the second greatest volume of auctions during the spring season to date.

View  complete auction report below.

This week, our reports that:

  • Sydney home prices were unchanged over the last week, dipped -0.1% in the last month, and are 3.5% higher than they were a year ago.
  • Melbourne house prices declined -0.1% last week, -0.2% last month, and are -2.2% lower than a year ago.
  • Brisbane house prices rose 0.1% last week, 0.6% last month, and are 12.9% higher than a year ago.

Overall, Australian capital house prices rose 0.2% last month, putting them 6% higher than a year earlier.

Clearly, the property cycle is moving forward, but our markets are extremely fragmented.

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Of course, these are “overall” data; there is no one Sydney, Melbourne, or Brisbane housing market.

Furthermore, different market segments behave differently.

At the start of this cycle, the higher quartile of the market led the upswing, but over the last quarter, the lower quartile in every major city has outperformed the upper quartile in terms of home values.

The graphic below depicts how different portions of each capital city market are performing, with median-priced properties performing well.

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Current property asking prices.

Property asking prices are an important leading indicator for housing markets, providing a strong indication of what’s to come.

Here is the most recent data available:

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Are you wondering how to invest in this exciting stage of the property cycle?

If you’re like many property investors, you’re undoubtedly wondering what the best thing to do right now is.

Should you buy, sell, or wait?

You can rely on Equimax Property Group to give you direction, guidance, and results.

Whether you’re a newbie or a seasoned investor, in times like these, you need an advisor that takes a holistic approach to wealth development, which is exactly what the multi-award-winning Equimax Property Group team provides.

We assist our clients grow, protect, and pass on their wealth through a variety of property investment options.