In the September episode of Market Watch, Scott and I delved into the market performance data for properties sold up to 31 August 2024.
We reviewed and compared the data tables from CoreLogic, SQM Research and PropTrack. While there’s some discrepancies, the market trends across the three data sets was similar with Sydney slowing and Melbourne continuing to slow.
Brisbane, Adelaide and Perth continued their upward trend for price growth coupled with a decrease in the number of properties coming on to the market. Canberra, Hobart and Darwin are flatlining, though Canberra is showing as a decrease in property values in some tables.
Watch the podcast for a deeper analysis on trends and nuances of each key area.
Influences
During the session, Scott gave an overview of the US Fed’s announcement of the decrease in interest rates. After a long period of stagnation, the US interest rate dropped by a full 1 percent which caused some concerns across the main markets.
Scott explained that while this will deliver benefits for some in the US, it’s unlikely to have an impact on Australia as inflation remains frustratingly too high for the Reserve Bank here. While rates are on hold – as announced this week by the RBA – there’s a growing expectation that the next move will be down for Australia.
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Budget purchases – opportunities or traps?
Given the market results, we looked at opportunities for property purchases for under $500,000. We reviewed the research from two key stories published by Realestate.com.au and Domain.com.au and also looked at the stats from the Core Logic Home Value Index.
- Where to buy with loan repayments under $550 per week – Analysis from realestate.com.au uncovered around 340 areas around Australia with properties that can be purchased with loan repayments of $550 per week. Generally, the locations were outside of the major capitals with many budget purchase areas located away from the coast. While the story is worth a look, most of the areas wouldn’t have too many jobs on offer or high population growth, so the purpose for buying in these areas would be a very personal choice – in other words I’m saying don’t expect much capital growth in the areas nominated.
- Where to buy for $500,000 or less – This story from Domain.com.au covered locations for the east coast of Australia and focused on the three main capitals of Brisbane, Sydney and Melbourne. While there is a good selection of options, some really key opportunities were missed – namely Penrith and Campbelltown for Sydney. Both these areas have some good opportunities for budget purchases, but both areas will also benefit from positive capital growth as the new international airport starts operating in 2026.
- Core Logic Home Value Index – Scott and I also reviewed pricing values in the Core Logic Home Value Index that showed regional areas with the highest capital growth. We discussed the fact that it’s this type of data that can lead buyers to make extreme mistakes. For example places like Gladstone, Townsville, Rockhampton and Mackay saw an increase in property values of 15 to 25 percent. However, without an increase in families moving to the area, an increase in government infrastructure and a very broad range of industries and jobs, these areas won’t have long term viable growth. In addition, the data is skewed because the sales are coming off a very low base and will hit a value ceiling (which they have no doubt already hit) at which point everyone will start to try offloading their properties and this will drive the prices in these areas down again.
You can watch the podcast showing the data in the stories / charts here . . .
About the author
Debra Beck-Mewing is the Editor of the Property Portfolio Magazine and CEO of The Property Frontline. She has more than 20 years’ experience in buying property Australia-wide and has extensive experience in helping buyers use a range of strategies including renovating, granny flats, sub-division and development. Debra is a skilled property strategist, and a master in identifying tailored opportunities, homes and sourcing properties that have multiple uses. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, and participates on numerous committees including the Property Owners’ Association.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.
