Monthly Housing & Economic Chart Pack, October 2015, AUSTRALIA

This month’s chart pack has been written by the CoreLogic RP Data Research Team. Also included below is a detailed overview on the key findings covered in this month’s report.

 

Home values rose in September but growth was mixed across the capital cities

  • Combined capital city home values increased by 0.9% in September 2015 with value rises in Sydney, Melbourne, Brisbane, Perth and Canberra with falls elsewhere
  • Despite moderate growth in September, over the 3 months to September home values have recorded strong growth of 4.0% driven largely by Sydney (4.6%) and Melbourne (7.4%)
  • Over the past 12 months, combined capital city home values have increased by 11.0% however, only Sydney (16.7%) and Melbourne (14.2%) have recorded growth with moderate increases in Brisbane (4.6%) and Canberra (0.6%) and values declining in Adelaide (-0.3%), Perth (-0.9%), Hobart (-0.2%) and Darwin (-3.9%)

 

House sales have levelled while unit transactions are trending lower

  • Over the 12 months to July 2015 there were 358,945 houses and 138,040 units sold nationally
  • House sales are 7.5% higher over the year while unit sales are -1.5% lower
  • It is important to note, the large volume of off-the-plan sales currently means there is a high likelihood unit sales volumes will be revised higher over the coming years

 

Rental rates are rising but doing so at their slowest pace on record

  • Capital city rental rates have increased by just 0.5% over the past year which is their slowest annual rate of growth on record
  • With record low rental growth and strong value growth rental yields have also reached record lows sitting at 3.5% with yields at record lows in both Sydney, Melbourne and Canberra

 

Homes continue to sell quickly with low discounts however, auction clearance rates are easing

  • The typical capital city home is currently selling after 36 days on the market compared to 45 days a year ago
  • The average level of discount is recorded at -5.8% compared to -5.7% a year ago
  • Auction clearance rates are trending lower, in fact Sydney has recently recorded its lowest auction clearance rate of the year

 

New and total listings are trending higher

  • Over the past 28 days there were 45,857 new homes listed for sale which is 4.1% higher than a year ago
  • Over the same timeframe there were 234,094 total homes listed for sale which is -0.6% lower than a year ago

 

Economic data remain mixed

  • GDP was recorded at 0.2% over the June quarter and at just 2.0% over the year to June 2015
  • New lending to investors remains higher than new lending to owner occupiers however it has weakened over recent months while lending to owner occupiers has picked up
  • Total housing credit is rising however, investment credit growth continues to slow while there has been a pick-up in owner occupier credit growth
  • The rate of population growth at a national level continues to slow
  • Dwelling approvals remain very high although they are slightly below their record high. Over the past year there has been more than 220,000 dwelling approvals
  • Consumer sentiment fell in September and remains slightly more pessimistic than optimistic
  • The unemployment rate eased to 6.2% in August and part-time jobs growth continues to outpace full-time growth
  • Official interest rates remained on hold in September however the market is anticipating another cut by mid-2016

The above data has been provided by Core Logic RP Data.

Regards

George Serghis

Property Consultant

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