Property Update - July 2023
- National home values rose 2.8% in the June quarter, which is the highest quarterly movement since January 2022. On a monthly basis, the pace of growth eased from 1.2% in May to 1.1% in June.
- The combined capital cities dwelling market value rose 1.2% in June, easing from a 1.4% lift in May. Values across the combined capitals are rising at more than twice the pace of the combined regional market, which saw values increase 0.5% in June.
- The high end of the Sydney housing market continues to lead capital growth, up 5.7% for the three months to June.
- Over the past financial year, Australian home values declined -5.3%. The highest growth result was a 8.7% gain across the regional SA dwelling market, while the lowest annual capital growth was a -12.7% decline across Hobart.
- CoreLogic estimates there were 35,523 sales in June nationally, compared to a previous five-year average of 39,180 for June. The six-month moving trend suggests sales volumes are stabilizing, despite being down from recent highs in 2021.
- The amount of time it takes to sell property trended slightly higher through the June quarter nationally, with the median days on market sitting at 34 days, up from a recent low of 30 days in the three months to April. However, vendor discounting suggests selling conditions continued to improve. Across the combined capitals, the median vendor discounting rate is at its lowest since the three month to May 2022.
- In the four weeks to 2 July 2023, new listings totalled 32,568 nationally. New listings saw a slight uptick in recent weeks, which is unusual for this time of year. However, listings volumes remain -7.9% lower than the historic five-year average.
- There were 130,950 listings observed over the four weeks to 2 July, 2023. Total listings are trending lower than the previous five-year average due to the relatively low volume of new listings, against a normalising in sales volumes.
- The combined capital cities clearance eased slightly through the month, averaging 67.7% in the four weeks ending 2 July 2023. This is down from an average final clearance rate of 71.3% in the four weeks prior, but remains elevated on the equivalent period of 2022, when the clearance rate averaged 55.0%.
- Australian rent values increased a further 0.7% in June, taking the national annual increase to 9.7%. Annual growth in rent values remains elevated on the decade average (which was 3.0% per year), but has shown signs of easing after peaking at 10.2% over the 2022 calendar year.
- Gross rent yields moved lower through the month of June nationally, as capital growth in home values (1.1%) outpaced the estimated growth in rent values (0.7%). National gross rent yields were 3.8% over June, down from 3.9% in the previous month, but higher than 3.3% a year ago.
- The combined value of secured housing finance increased 4.8% in May to almost $25 billion. Both owner occupiers and investors are seeing an uplift in borrowing from a recent low in February, which coincides with the trough in national home values.
- The July ‘Chart of the Month’ uses rental history on sale listings to infer to portion of new listings that are investment properties. CoreLogic estimates that around a third of new listings added to the market through June were investment properties.
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