Property Update - January 2023

Monthly highlights

• The combined value of residential real estate in Australia fell to $9.3 trillion at the end of December, from $9.4 trillion in the previous month.
  
  
• Dwelling values in Australia are -5.3% over the past 12 months, marking the largest calendar year decline in home values since 2008.
  
  
• December saw national home values decline -1.1%, which was steeper than the -1.0% fall in November, but still below the peak monthly decline (-1.6%) recorded in August.
  
  
• The highest annual growth rate in dwelling values among the regional and capital city dwelling markets was across Regional SA, at 17.1%. The lowest change in values was across Sydney, where home values declined -12.1% in the past year.
  
  
• Sales volumes continue to trend lower as buyer demand slows. CoreLogic estimates that in the 12 months to December, there were 514,342 sales nationally, down -17.0% compared to the previous year. While down compared to last year’s volumes, sales estimates are still 6.3% above the decade average annual sales volume.
  
  
• At the national level, properties are taking longer to sell. In the three months to December, the median days on market was 34, up from a low of 20 days in the three months to November 2021.
  
  
• Similarly, vendor discounting has also expanded from -2.9% in the three months to November 2021. In the three months to December 2022, the median vendor discount at the national level was -4.3%.
  
  
• In the four weeks to 8 January 2023, the volume of new listings totalled 13,936 nationally. The new listings trend is moving through a seasonal low, and is also -22.1% lower than the previous five-year average.
  
  
• At the national level, there were 122,062 listings observed over the four weeks to 8 January, 2023. Total listings are moving through a seasonal low, but the volume is also lower than in previous years.
  
  
• The combined capital cities clearance rate shifted slightly lower over the last four weeks of auction activity in 2022. The clearance rate averaged 55.1% in the four weeks to 18 December, 2022, down from 65% at the end of 2021.
  
  
• Annual growth in rent values has re-accelerated. Annual growth in Australian rent values was 10.2% in the 12 months to December, a new record high. This has partially been driven by growth in unit rents across Sydney, Melbourne and Brisbane, where rents have increased around 14-16% annually.
  
  
• Through December, Australian gross rent yields rose to 3.78%, up from a low of 3.21% in January 2022. Over the 2022 calendar year, gross rent yields across the capital cities rose fastest across Sydney, up 72 basis points.
  
  
• In this month’s pack, there is a chart featuring monthly rental vacancy rates, showing a slight lift in vacancy through the month of December across most capital cities.
  
  
• This pack also includes a guide to CoreLogic data used throughout the pack.
   

Download the report here (PDF 2MB)