Over July, property market last month, rising in value by 2.6% and adding to a 20.5% increase in the past 12 months. Hobart and Darwin increased in value by 1.7% in July and grew in importance by 21.9% and 23.4%, respectively, over the past year, making them the two most robust markets in the country. Sydney jumped by 2.0% and has seen 18.2% annual growth; however, CoreLogic has noted that the market here is finally starting to cool down. After witnessing a peak monthly .increased in all states and territories, and once again, the same capital cities performed strongly. Canberra was the best-performing
Meanwhile, Brisbane continues to, growing at 2.0% in July and 15.9% over the last 12 months. Once again, Perth is underperforming all other property markets, having seen only 10.8% . Head of Research at CoreLogic, Tim Lawless, notes that in many areas and negative sentiment thanks to ongoing lockdowns.
“On the flip side, demand is being stocked by record-low mortgagefor an extended period. Dwelling sales are tracking approximately 40% above the five-year average, while active about -26% below the five-year average. The mismatch between demand and advertised supply remains a placing pressure upwards on housing prices,” Mr. Lawless said.
After performing well above expectations in 2020, regionallevels similar to the metro areas. In the first seven months of 2021, CoreLogic data shows an almost equal growth rate in dwelling values across the combined regional and capital markets, with discounts up 14.5% and 14.0%, respectively. Regarding types of properties performing well, it continues to be detached and apartments.
The other factor that continues to help prop up property markets around the country is still the low stock levels. Houses increased in value by two to three times units in most cities with the expectation of Hobart over thelower-density living. Advertised listing numbers remain well below most parts of the country. Recently, the number of newly advertised properties has fallen sharply across , with many vendors waiting until conditions ease.
Mr. Lawless believes that while listings are low, demand could also potentially change going forward. “With buyer demand so strong and active listings well below average, prospective buyers are likely to feel a sense of urgency due to the level of competition in the market.” “However, with affordability constraints starting to impact purchasing capacity, it’s possible that market activity could reduce through the, helping to rebalance the market and take some heat out of the rate of house price growth,” Mr. Lawless said.
Looking forward, Australia’sremains in a strong position. However, signs of a slowing rate of appreciation have become more evident. According to CoreLogic, the growth rate will continue to taper through the second half of 2021 as supply gradually increases. Other potential headwinds are apparent, including the possibility of tighter credit policies and an in interest rates, which could also dent sentiment and translate into lower growth. For now, lockdowns will of momentum, particularly from a transactional perspective in Sydney, which is enduring an extended period of restrictions.