Property Market Update
Capital city housing markets remain extremely diverse, reflecting the different growth drivers from region to region.
Home values recorded strong growth throughout 2015 in Sydney & Melbourne, moderate growth in Brisbane & Canberra, while values have fallen across each of the remaining capital cities, with much greater falls in Darwin and Perth.
Recently, signs have emerged that Sydney’s values are falling and that growth is slowing in Melbourne.
However, markets such as Brisbane & Canberra continue to record low levels of value growth.
While regional markets linked to the resources sector remain generally weak, coastal and lifestyle markets are generally bouncing back, with both values and demand lifting.
Sheltered from the resources sector downturn, Sydney & Melbourne have benefitted from the healthy services sector and population inflows.
However, mining states and territories are experiencing softer economic conditions and a sharp wind down in population growth.
Investment housing demand has fallen and owner-occupier demand is increasing.
Median values and growth rates…
Perth – $510K, -3.7%
Adelaide – $420K, -0.1%
Melbourne – $610K, 11.2%
Darwin – $520K, -3.6%
Brisbane – $475K, 4.1%
Sydney – $800K, 11.5%
Canberra – $585K, 4.1%
Hobart – $350K, -0.7%
Average Days On Market
Houses vs Units
30 days 29 days
30 days 31 days
56 days 62 days
52 days 58 days
77 days 83 days
47 days 42 days
87 days 102 days
26 days 53 days
SOURCE: CoreLogic RP Data
Soft Landing For Prices
Home buying sentiment remained buoyant in January, despite increased mortgage rates and tighter lending conditions.
The Australian Financial Review reports that a Members Equity Bank survey of 1,500 Australians indicated 18 per cent were currently saving to buy a home or investment, down from 20 per cent six months ago.
The number of people looking to sell is also down slightly, from 8 per cent to 7 per cent, but buyers still outnumber sellers by more than two to one, so property remains a ‘sellers market’.
The bank’s treasurer said the findings indicated property demand pressures from buyers may remain strong for the next 12 months, supported by unmet demand from owner occupiers, continued low borrowing costs and recent improvements in the labour market.
The figures indicate demand for housing remains quite robust and there is little evidence to suggest anything other than a soft landing for house prices in 2016.
For more information about the market, visit firstnational.com.au and explore our Australian Real Estate blog.