
MARKET DOWNTURN SHOWS SIGNS OF EASING
CoreLogic’s national Home Value Index (HVI) fell a further -1.0% in January, which was a slight improvement on the -1.1% decline recorded in December, and the smallest month-on-month decline since June last year.
The reduction in the rate of decline was evident across most capital cities, except for Adelaide (-0.8%) and Perth (-0.3%) where housing values have held firmer since interest rates began rising in May.
Every capital city posted a decline in dwelling values through the month, led by Hobart (-1.7%) and Brisbane (-1.4%), while the smallest drops were recorded in Perth (-0.3%) and Darwin (-0.1%).
Sydney’s median dwelling value dropped below $1 million for the first time since March 2021, falling -1.2% in January, an improvement on December’s -1.4% decline.
Rate of decline with premium property provides clues
The most noticeable easing in value falls was seen across the premium end of the housing market, where the country’s most expensive properties have led both the recent upswing as well as the current downturn. Across the combined capitals, the rolling quarterly rate of decline in the upper quartile values has improved from a recent low of -6.1% over the September 2022 quarter to -4.0% over the three months to January.
While this trend towards improving conditions across premium markets is not evident in all cities, it is most apparent in Sydney’s detached house market. Quarterly declines in this market segment eased from -7.7% in the three months to August, to -3.9% in the three months to January. The improvement could be reflective of more buyers taking advantage of larger price drops across the premium sector, where house values are down -17.4% since peaking in January 2022.
Regional housing values more resilient than cities
Through January, regional housing values continued to record a milder rate of decline than each of their capital city counterparts, a trend seen through most
of the downturn to-date.
The milder decline comes after a substantially stronger upswing. Across the combined non-capital city areas of Australia, housing values surged 41.6% higher through the upswing compared with a 25.5% rise in values across the combined capital cities. Since peaking in June, the combined regionals index is down -7.4%, while capital city values are now -9.6% below their April peak.
Despite easing rates of internal migration and a partial erosion of the pre-pandemic affordability advantage, regional housing values are holding up better than capital city markets. This will be an interesting trend to watch over the longer term, but at the moment it seems regional housing markets have seen a structural shift in the underlying demand profile.
With more Australians willing to base themselves outside of the capital cities and remote working remaining a viable option across some sectors of the labour force, it’s unlikely we’ll see a mass exodus from regional markets.
Monthly change in capital city home values
MONTHLY ANNUAL
Sydney q 1.2% q 13.8%
Melbourne q1.1% q 9.3%
Brisbane q 1.4% q 4.7%
Adelaide q 0.8% p 6.9%
Perth q0.3% p 2.7%
Hobart q 1.7% q 9.5%
Darwin q0.1% p 3.7%
Canberra q 1.0% q 5.9%
National q 1.0% q 3.2%
THE IMPORTANCE OF PROFESSIONAL PHOTOGRAPHY
Professional photography is a crucial aspect of selling a home. It has the power to capture the essence of a property, showcasing its strengths and highlighting its unique selling points.
Whether you are selling a high-end luxury home or a more modestly priced property, professional photography can make all the difference in attracting potential buyers and ultimately, securing a sale.
High-quality photographs can help distinguish your property from the competition, creating an emotional connection with potential buyers. A professional photographer will have the necessary equipment, lighting, and expertise to take stunning images of your home, capturing its beauty and making it stand out from the crowd.
Moreover, professional photography is a powerful tool for presenting a home in its best light. A skilled photographer will know how to use lighting, angles, and composition to create visually appealing images that show off the property’s best features. They can also make any necessary adjustments, such as removing clutter or adjusting furniture, to create an attractive and inviting space.
All First National Real Estate agents have multiple solutions to present your property in its best light, so we can maximise your sale price.
CURRENT TRENDS IN AUSTRALIAN REAL ESTATE
The Australian real estate market is constantly evolving, with new trends emerging every year.
In recent times, the industry has seen a shift towards sustainable and eco-friendly housing, a growing demand for apartments and townhouses, and a rise in remote working, which is changing the way people think about location and housing. In this article, we will take a closer look at these trends and their impact on the Australian real estate market.
Sustainable and eco-friendly housing
One of the biggest trends in the Australian real estate market is the shift towards sustainable and eco-friendly housing. With increasing concerns about the environment and climate change, more and more Australians are looking for homes that are energy-efficient, environmentally friendly and sustainable.
This has led to a rise in demand for homes that feature solar panels, water harvesting systems, green roofs, and other environmentally friendly features. Additionally, many new developments are being built with a focus on sustainability, including the use of eco-friendly building materials, smart home technology, and environmentally conscious design.
Apartments and townhouses
Another trend in the Australian real estate market is the growing demand for apartments and townhouses. This trend is being driven by several factors, including the increasing cost of housing, a desire for low-maintenance living, and a desire for a more convenient and urban lifestyle.
Apartments and townhouses offer a cost-effective alternative to traditional single-family homes, and provide a more affordable option for those looking to enter the property market. Additionally, they offer a convenient and low-maintenance lifestyle, with amenities such as swimming pools, gyms, and communal gardens.
Remote working
The COVID-19 pandemic has had a significant impact on the market, with many people now working from home as a result of remote work policies. This has changed the way people think about location and housing, and has led to a rise in demand for homes that offer a comfortable and convenient workspace.
Additionally, many people are now looking for homes that are located in areas that are well-connected to the internet, as well as those that offer ample space for a home office. The arrival of internet services such as Elon Musk’s Starlink will make almost anywhere in Australia a viable place to live.
This trend is expected to continue as remote work becomes increasingly prevalent, and is likely to have a lasting impact on the Australian real estate market.
Structural shift in regional demand
Currently it seems that more and more Australians are willing to base themselves outside of the nation’s capital cities. Predictions that the pandemic exodus from cities would eventually result in a return to our cities for their infrastructure and cultural advantages appear to be incorrect. The resilience of regional prices compared to capital city prices, during this current downturn, has been stronger.
So, although the market continues to evolve and change shape, low levels of housing inventory continue to be a feature of the market, nationally. However, demand for housing has also fallen away, with capital city dwelling sales over the past three months estimated to be 29.4% lower compared to the same period last year, and 11.5% below the 5-year average.
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