CITY HOMES ARE 37.9% MORE EXPENSIVE THAN UNITS
CoreLogic’s DECEMBER Home Value Index reveals that housing values rose another 1.3% in November, taking prices 22.2% higher over the past 12 months. The report also shows that the gap between capital city houses and apartments is now the largest on record!
The November uptick in values has added $126,700 to the median value of an Australian home but the rate of growth is definitely slowing. Virtually every factor that has driven housing values higher has lost some potency in recent months. Fixed mortgage rates are rising, a higher number of listings for sale is taking some of the urgency out of the market for buyers, affordability has become a more substantial barrier to entry and credit is less available.
Monthly change in capital city home values
MONTHLY ANNUAL
Sydney p 0.9% p 25.8%
Melbourne p 0.6% p 16.3%
Brisbane p 2.9% p 25.1%
Adelaide p 2.5% p 21.4%
Perth p 0.2% p 14.5%
Hobart p 1.1% p 27.7%
Darwin q 0.4% p 16.7%
Canberra p 1.1% p 24.5%
National p 1.3% p 22.2%
Brisbane & Adelaide are showing the fastest growth
The capital city trends are showing greater diversity, with Brisbane and Adelaide now recording the fastest pace of growth, while conditions across Sydney and Melbourne have slowed more sharply.
Brisbane and Adelaide are the only capital cities yet to experience a slowdown, with the monthly rate of growth reaching a new cyclical high across both cities in November. Brisbane home Index results as at November 30, 2021 values
were up 2.9% in November (highest since Oct 2003) while Adelaide values were up 2.5% (highest since Feb 1993). In dollar terms that equates to a monthly rise of approximately $18,500 and $13,500 respectively based on median values.
Nationally, there are 141,786 houses and apartments currently for sale. It’s still a seller’s market but there is a good chance advertised supply will continue to rise through the rest of summer, creating more choice for buyers.
Housing inventory levels starting to normalise
Different supply dynamics are creating divergent trends across Australian capital cities. In the four-week period to November 28, total stock available for sale across Adelaide was - 32.0% lower than the five-year average, and -33.9% lower across Brisbane. Across Sydney and Melbourne however, stock levels have become far more normalised in recent weeks, with Sydney total listings sitting just -2.6% below the five-year average, while stock levels across Melbourne are 7.9% above the five-year average.
Houses still outperforming units
Houses have continued to outperform units, with capital city values up 1.2% and 0.7% respectively over the month. However, the quarterly rate of growth is now the narrowest it has been since October last year, with 1.6 percentage points between the two broad housing types.
Based on median values, capital city houses are now 37.9% more expensive than capital city units – the largest difference on record. In dollar value terms, a capital city house is averaging approximately $240,500 more than a capital city unit. In Sydney, where the gap between house and unit values is the widest, a house costs $523,000 more on average than a unit.
FUNCTION DOESN’T HAVE TO MEAN THE DEATH OF FORM
When preparing a home for the market, it’s the attention to small details that makes all the difference.
If you plan on renovating to freshen up your property, it’s worth making a few bold choices where few others dare to tread. Functional items like drain covers, exhaust and extractor fans, light switches, and power points are predominantly selected for their functional capacity rather than their design aesthetic. These are all essential components of a fit-out but that doesn’t mean they have to be ugly! As we all know, these items are permanent fixtures in homes across the globe, yet rarely strike a chord as a design feature as much as a statement tap or mixer would.
Not only does an unexpected choice contribute to the overall look and feel of the space, but a unique piece can also be a real drawcard for those wanting to feel like they are getting something special or out of the ordinary. There is no better breeding ground for creativity than a competitive marketplace and now those trusty functional pieces we usually take for granted are also available in a range of designs and options. Gone are the standard round bathroom ceiling fans or rectangular exhaust fans. Now they come in a range of sizes, shapes, and colours, with clean lines and even high-tech bells and whistles. Drain grates for showers, baths, and sinks can be customised now with hundreds of choices available around materials, colours, textures, and patterns. Most other functional items too now come in a range of colours or options to match the design aesthetic you are going for in your property.
MAKING A STATEMENT WITH RAMMED EARTH
Sustainable housing materials are no longer the niche alternative for many new home constructions or additions - in many cases, they are now the preferred first option.
Rammed earth is a great example of this, with the material becoming an increasingly familiar component of contemporary architecture. Rammed earth is by no means a new technique and offers a great solution in places with extremes of weather like parts of Australia and New Zealand, due to its thermal mass and durability.
The basic process for creating rammed earth walls involves an aggregate mixture that can contain a mix of sand, earth, pebbles, gravel, silt, or clay - and maybe a bit of concrete for extra strength. Iron oxide pigment may also be added to achieve a preferred colour. These components are blended then rammed into panels or moulds, before drying to be coated and sealed. The nature and appearance of the material itself make rammed earth walls very low maintenance – unlike paint they do not reveal scuffs or marks, nor do they need to be repainted regularly due to cracked and peeling surfaces. The only maintenance required may be an additional coat of sealer every 10 to 20 years on walls exposed to the elements. Having said that, rammed earth walls can be painted, plastered or wallpapered over to achieve your preferred design aesthetic. Rammed earth walls are also particularly distinctive as an architectural feature as they are frequently sourced from the local environment, so the resulting colours of the finished product reflect this.
Rammed earth is a great solution for residential housing, providing strong visual elements to a home, as well as being a sustainable option for managing internal temperatures when combined with the right insulation. Well-positioned external walls - with regard to sun exposure – will absorb heat during daylight hours and warm the interiors of your home, reducing the need to rely on artificial heating.
In addition to its thermal qualities, rammed earth is also chosen by many home builders because of its low toxicity and the consequently improved air quality in rammed earth-built rooms. The porous nature of the material gives it humidity controlling properties and its density also offers some sound
insulating qualities. In earthquake-prone regions such as New Zealand, research has found that the load-bearing capacity of this style of construction often performs better under tremor conditions than conventional building materials.
It also offers some level of fire resistance, so can be protective as well as attractive when you are considering external building walls or even patio or fence line structures.