SEQ Values On The Rise
Queensland now has 185 suburbs with a median house price above $1million after 95% of suburbs recorded growth in the past three months. The PropTrack Home Price Index says nine new suburbs entered the $1 million club, all within the southeast. PropTrack economist Eleanor Creagh says many of the topperforming markets were in more affordable suburbs and regions. “Generally speaking, we would expect to see price growth continue, especially in Brisbane and southeast Queensland,” she says. “Brisbane and the Gold Coast have already reclaimed any losses incurred in 2022 and continue to record growth every month to hit new peaks,” she says. The report says on the Gold Coast, unit values are on the rise with the top four suburbs for growth, Southport, Molendinar, Ashmore and Parkwood. House values in Jacobs Well, Palm Beach, Coolangatta and Currumbin Waters also rose by between 4.98% and 5.99%. On the Sunshine Coast, the top performers were Yaroomba and Caloundra for houses, and Sippy Downs for units.
Southport Tipped To Take Off
Southport is tipped to be one of the best-performing suburbs in Southeast Queensland in the next 12 months. Real estate expert, John McGrath’s McGrath Report 2024, says the suburb offers a lifestyle similar to Broadbeach, Burleigh Heads and Palm Beach at a more affordable price point. It has a median house price of $900,000 as of September 2023 and a median unit price of $555,000. McGrath says there is a “plethora” of high rises in Southport offering affordable buy-in prices for First Home Buyers. He says it is an attractive suburb with plenty of amenities including walking tracks, playgrounds, and beaches. The report says population growth on the Gold Coast is among the highest in Australia at 7.8% in the year to March 2023, which will help drive further price growth. He says buyers are lured to the regions after being priced out of the property hotspots. They are increasingly looking to neighbouring “ripple regions” for a similar lifestyle and affordability.
Home Prices Soar In September
The Australian property market is shaping up to have an “historically strong year” in many markets. PropTrack senior economist Eleanor Creagh says nationally home prices rose by another 0.35% in September which means prices are up 4.31% for the year to date. The biggest driver of the 2023 recovery has been the “subdued listings environment” which resulted in buyers completing for too few properties and record levels of migration. “Home price growth has not only turned around quicker than many expected, but 2023 is shaping up to be a historically strong year in many markets,” Creagh says. “Looking ahead, population growth is rebounding strongly and given the shortage of new homes, prices are expected to rise with more markets reclaiming peak levels after recouping last year’s fast falls.” Creagh says many are now expecting interest rate cuts in 2024, which means buyers will be able to borrow more and mortgage services costs will drop, which will likely fuel continued price rises.
Massive Auction Surge
More sellers are choosing to take their properties to auction, with September recording the highest number of auctions in more than a year. Domain’s September Auction report shows across the combined capital cities 9518 properties were offered for auction during the month, while 1340 were offered in regional locations. It was the highest number of capital city auctions since May 2022 and the highest number of regional auctions since December 2022. Domain chief of research and economics, Dr Nicola Powell, says the increase in listings for auction is a result of recent strong clearance rates. During September Adelaide had the highest clearance rate of 74.5%, followed by Sydney, 67.4%, Melbourne 64%, Canberra, 52.4% and Brisbane, 46.2%. “The September auction performance shows Australia’s housing market is in the continued recovery,” Powell says. The report also shows a lower proportion of properties sold before auction, which Powell says indicates sellers are less likely to accept offers before auction day due to increasing competition between buyers.
Rental Pool Hits A Decade-Low
The number of properties within the national rental pool hit a decade low, with just 90,153, rental properties throughout Australia in October. The latest CoreLogic Quarterly Rental Review shows there is a rental shortfall of about 47,500 properties. CoreLogic Economist, Kaytlin Ezzy, says the number of rental properties is at the lowest levels recorded since 2012. Although the number of properties in the rental pool has reduced, and vacancy rates hit record lows in September, the pace of weekly rental growth dropped in the September quarter. Nationally rental values rose 1.6%, compared with 2.2% the previous quarter. Ezzy says worsening affordability continues to be a significant factor placing downward pressure on the pace of rental growth. “After recording a small dip over the first few months of COVID, national rents have risen for 38 consecutive months, taking rental values 30.4% higher since July 2020 and adding the equivalent of $137 to the median weekly rent,” she says.
Quote Of The Week
“National rents have risen for 38 consecutive months, taking rental values 30.4% higher since July 2020 and adding the equivalent of $137 to the median weekly rent.”
CoreLogic Economist, Kaytlin Ezzy