- NSW Regional Outlook
- VIC Regional Outlook
- QLD Regional Outlook
- SA Regional Outlook
- WA Regional Outlook
Dwelling values in Sydney have increased at the fastest annual pace of all capital cities over the past year however, the rate of growth has recently slowed from its cyclical peak. Over the 12 months to April 2017, Sydney values increased by 16.0% which was the slowest annual rate of growth in three months. Over the past year, house values have increased by 17.4% compared to a 9.8% increase in unit values.
It is estimated that over the three months to April 2017, there were 22,628 settled sales in Sydney which was -2.7% lower over the year. Settled house sales were -7.5% lower than over the same three month period last year while settled unit sales were 4.1% higher.
Rental rates in Sydney have increased by 2.2% over the 12 months to April 2017 which is the fastest annual rate of growth since October 2015. Over the past year, house rents have increased by 2.3% and unit rents are 1.6% higher. With values rising at a more rapid rate than rents, gross rental yields are currently at historic low levels of 2.7% for houses and 3.8% for units.
Sydney properties that are currently advertised for sale are taking 29 days to sell compared to 38 days at the same time last year. The 29 days represents the shortest days on market figure for the city since October 2015.
NSW Regional Outlook
There has been an acceleration in the rate of house value growth in regional New South Wales over the past year however, the rate of growth remains slower than that across Sydney. Regional house values in New South Wales have increased by 10.2% over the 12 months to March 2017, up from 6.3% at the same time last year. Many regions of regional New South Wales are experiencing value growth however, locations close to Sydney and coastal markets linked to lifestyle are the ones experiencing the greatest increases in values.
There were fewer settled transactions in regional New South Wales over the three months to April 2017 than there were over the same three month period in 2016. Over the past three months, there were 16,083 house and unit sales across the region which was -1.1% lower than over the previous year.
Rental rates in regional New South Wales have increased by 2.4% over the 12 months to April 2017 and gross rental yields have fallen slightly from 5.5% a year ago to 5.4% currently.
Melbourne dwelling values have increased by 15.3% over the 12 months to April 2017 with the annual rate of growth having slowed marginally last month. Melbourne dwelling values have now increased by 93.4% since the end of 2008, only slightly behind Sydney’s growth over the period and much greater than all other capital cities. Melbourne houses have increased over the past year at a rate which is more than four times greater (16.5%) than growth in unit values (4.1%).
Although dwelling values continue to rise in Melbourne, the number of settled sales has continued to trend lower over the past year. Over the three months to April 2017 there were 20,543 settled sales across the city which was -12.3% lower than over the same period last year. House sales were -12.2% lower over the year and unit sales were -12.4% lower. As off-the-plan sales settlements occur there should be some upwards revision to these numbers.
Melbourne rents have increased by 3.8% over the past 12 months with rental growth now hovering around its highest annual rate since September 2011. Both houses and units have recorded rental growth over the past year with house rents rising by 4.0% and unit rents 3.9% higher. Although rents are rising, the much stronger growth in values has pushed gross rental yields to historic low levels for houses at 2.6% while unit yields have ticked up from a recent historic low to 4.1%.
Dwellings in Melbourne are currently selling at a rapid pace taking just 29 days to sell. At the same time a year ago, Melbourne dwellings were typically taking a higher 33 days to transact.
VIC Regional Outlook
While Melbourne dwelling values continue to rise at a swift pace, outside of the capital city the growth in house values has been much more moderate, up just 2.5% over the past year. The annual rate of growth is actually marginally lower than the 2.7% increase over the same period last year. Growth hasn’t noticeably spilled out of the capital city however, there are signs that the rate of growth has accelerated recently in Geelong.
Over the three months to April 2017 there were 7,244 dwelling sales in regional Victoria. The number of sales is -3.1% lower than over the same three month period in 2016.
Rental growth is moderate across regional Victoria, the average rent is recorded at $262/week and it has increased by 1.4% over the past year. Gross rental yields in regional Victoria are much firmer than those in Melbourne and currently sit at 5.3% which is unchanged from a year ago.
Dwelling values in Brisbane continue to rise at a rate which is broadly in line with income growth, as they have for a number of years now. Over the 12 months to April 2017, Brisbane dwelling values have increased by 2.1% and have increased by just 0.6% over the first four months of this year. The relatively soft growth has been a consistent story over recent years with values increasing by 2.8% annually over the past decade. Over the past year, house values have increased at a moderate rate of 2.6% which is much greater than the -3.1% fall in unit values over the period.
Over the three months to April 2017, Brisbane recorded 13,849 settled house and unit sales which were -11.4% lower than over the same period in 2016. Compared to a year ago, house sales were -9.4% lower while unit transactions were down -15.5%.
Brisbane’s rental market remains soft, particularly so for units. Over the past 12 months, dwelling rents have fallen by -0.2% however, unit rents are -3.1% lower compared to a 0.2% increase in house rents. Gross rental yields have fallen from 4.2% to 4.0% over the year and unit yields are steady at 5.3%.
Brisbane homes are typically taking 53 days to sell which is much higher than the 42 days they were taking to sell a year ago.
QLD Regional Outlook
Growth conditions in Queensland are quite varied with the South-East corner generally experiencing moderate value rises while elsewhere there is little growth and value falls in some markets. Over the past 12 months, house values in regional Queensland have increased by 2.0% which is lower than the rate of growth in Brisbane but up from 1.4% a year ago.
The number of house and unit sales in regional Queensland is currently marginally lower than it was at the same time a year ago. Over the three months to April 2017, there were 14,736 dwelling sales which was -0.3% lower than over the same period a year ago.
While there has been a moderate increase in values over the past year, rental markets remain weak in regional Queensland with weekly rents falling by -3.8%. Despite the fall, average gross rental yields are unchanged over the year at 5.5%.
Adelaide dwelling values have increased but at a relatively slow pace over the past year, mirroring the growth performance over recent years. Adelaide dwelling values increased by 2.2% over the past 12 months and have increased at an annual rate of 3.2% over the past decade. Over the past year, house values have risen by 2.4% while unit values have fallen by -0.2%.
Although value growth has remained sluggish, the number of residential properties transacting has been rising. Over the three months to April 2017 there were 6,535 settled dwelling sales which was 5.0% higher than over the same period in 2016. Over the same timeframe, house sales are 6.2% higher and unit sales have increased by 1.3%.
Weekly rental rates in Adelaide have increased by 1.1% over the 12 months to April 2017. Looking at the performance of houses and units, house rents have increased by 1.2% over the year while unit rents are -0.3% lower. Gross rental yields have pushed moderately lower for houses and units over the year and are currently recorded at 3.9% and 4.5% respectively.
Residential properties in Adelaide are selling a little quicker than they were a year ago when they took 56 days to sell compared to 51 days currently.
SA Regional Outlook
In South Australia’s regional markets, house values have increased by 2.4% over the past year which is a similar rate of growth to that in Adelaide. The rate of growth has also picked up over the year after recording growth of 1.0% 12 months ago.
Although values have increased over the year, there has been fewer house and unit transactions. Over the three month to April 2017 there were 1,993 settled sales in regional South Australia which was -5.8% lower than over the previous year.
Like in Adelaide, rental markets in regional South Australia remain weak with rents falling by -0.1% over the past year to $238/week. Gross rental yields have also softened over the past year and are now recorded at 5.8% compared to 6.1% a year ago.
The Perth housing market has continued to weaken over the past year with dwelling values falling by -6.0% to April 2017. At the end of April 2017, Perth dwelling values were at a level -10.0% lower than their end of month peak in December 2014. Over the past year, house values in Perth have fallen by -6.0% while unit values have fallen by a similar magnitude of -5.9%.
Although values have continued to fall, the decline in transaction activity has ceased with transactions now higher than they were a year ago. Over the three months to April 2017 there were 8,471 dwelling sales in Perth which was 7.3% higher than over the same period in 2016. Over the period, house sales were 4.6% higher while unit sales increased by 20.7%.
Rents have continued to fall in Perth over the past year down by -9.3% to April 2017. Although rental rates have continued to fall the rate of decline has slowed recently. Over the past year, house rents have fallen by -9.4% while unit rents have declined by -8.4%. Although both values and rents have fallen over the year, rents have fallen at a greater pace dragging gross rental yields lower to 3.6% for houses and 4.2% for units.
Perth dwellings are currently taking longer to sell than they were a year ago with the days on market having risen over recent months. The typical Perth dwelling is taking 73 days to sell compared to 56 days at the same time a year ago.
WA Regional Outlook
Like Perth, regional Western Australia has continued to see the market weaken over the past year with house values having fallen by -4.5%. Mining regions continue to act as a drag on the market however, the rate of decline in many of these areas has slowed. A number of lifestyle and agricultural markets have actually seen slight growth in values over the past year.
Sales volumes are now slightly higher than they were a year ago which could point to a further slowing of the rate of value decline should transactions continue to rise. Over the three months to April 2017 there were 2,395 house and unit sales which was 4.6% higher than over the previous year.
Rents continue to decline however, there has been a slight slowdown in the rate of decline over the year. Average rents are recorded at $310/week currently having fallen by -9.9% over the year. Average gross rental yields are currently recorded at 6.7% up from 6.3% a year ago however, securing and keeping tenants is likely to be a significant obstacle in many regions of the state.
Like Perth, dwelling values in Darwin have continued to decline over the past year, down -2.3% to April 2017. After the market reached its most recent end of month peak in May 2014, Darwin dwelling values were -8.3% lower than its peak in April 2017. Over the past year, Darwin house values have fallen by -2.8% while unit values have actually increased by 0.3%.
Although values have continued to fall, it seems that more buyers are prepared to enter the market with transaction volumes across Darwin rising from a low base. There were 2,216 settled dwelling sales in Darwin over the three months to April 2017 that was 30.9% higher than over the same period in 2016. House sales have increased by 41.4% over the year and unit sales are 12.6% higher.
Darwin rental rates have continued to fall over the past year, down -13.4% over the 12 months to April 2017. Rents have declined at a much faster pace than values and this has dragged gross rental yields lower over the year. 12 months ago, rental yields were recorded at 5.2% for houses and 5.0% for units compared to 4.9% and 3.7% respectively as at April 2017.
Although sales have increased over the year, the process of selling is clearly a lengthy one with the typical days on market recorded at 118 days. The length of time to sell has increased from 103 days at the same time a year ago.
Canberra has seen some momentum gather in value growth over the past year with dwelling values increasing by 8.4% over the 12 months to April 2017. Since the end of 2008, Canberra has seen values rise by 35.8% which is the third highest rate of growth amongst capital cities. Over the past 12 months, the growth in values has largely been driven by houses which have increased in value by 8.7% compared to a 3.8% increase in unit values.
Canberra sales volumes have picked up over recent months culminating in sales now being higher than they were a year ago. Over the three months to April 2017 there were 2,208 dwelling sales across the city which was 3.5% higher than over the same three month period last year. House sales are 2.0% higher over the year and unit sales are 5.1% higher.
Rental demand has escalated in Canberra over the past year lifting rental rates by 9.2% to April 2017, the cities fastest annual rate of rental growth on record. House rents are largely driving the increase, up 10.4% over the year compared to a 5.1% in unit rents. Rents are increasing at a faster pace than values which has resulted in increases in gross rental yields over the year. A year ago, yields were recorded at 4.1% for houses and 5.0% for units compared to 4.2% and 5.2% respectively as at April 2017.
Residential properties are selling rapidly across Canberra typically sitting on the market for 35 days currently compared to 48 days a year ago.
Over the 12 months to April 2017, Hobart dwelling values have increased by 13.6% which is the city’s fastest annual rate of value growth since November 2004. The recent growth has seen the Hobart market awaken from a long slumber in which values have increased by a total of just 19.2% over the past decade. Over the past year, house values have increased by 13.2% while unit values have increased by 17.2%.
Although values are rising, transaction volumes are lower over the year however, this is largely a function of a substantial decline in the volume for stock available for sale. Over the three months to April 2017 there were 1,213 dwelling sales in the city which was -2.9% lower than over the same period in 2016. House sales were unchanged over the year while unit sales were -11.1% lower.
As values have risen over the past year, so too have rents indicating growing housing demand coupled with relatively limited supply. Over the 12 months to April 2017, rental rates have increased by 8.3% whereas 12 months ago they had increased by just 1.1%. Rental growth for houses hasn’t kept pace with value growth which has pushed gross yields from 5.3% a year ago to 4.9% currently. Unit rents have increased at a faster pace than unit values which has resulted in yields increasing from 5.3% to 5.4% over the year.
Hobart homes are typically taking 35 days to sell currently down from 44 days a year ago. The days on market figure is hovering around its lowest level over any period since 2008.