Property Update - March 2023

Monthly highlights

• The combined value of residential real estate in Australia rose to $9.3 trillion at the end of February, from $9.2 trillion in the previous month.
  
  
• Dwelling values in Australia are -7.9% lower over the past 12 months, the largest annual decline on record.
  
  
• Despite a large annual decline in home values, the monthly pace of decline slowed quickly over February to just -0.1%.
  
  
• The highest annual growth rate in dwelling values among the regional and capital city dwelling markets was across Regional SA, at 13.2%. The lowest change in values was across Sydney, where home values declined -13.4% in the past year.
  
  
• The rolling 28-day change in the combined capitals home value index was 0.0% in the 28 days ending 7 March.
  
  
• Sales volumes continue to trend lower as buyer demand slows. CoreLogic estimates that in the 12 months to February, there were 486,620  sales nationally, down -21.2% compared to the previous year.
  
  
• At the national level, properties are taking longer to sell. In the three months to February, the median days on market was 41, up from a low of 20 days in the three months to November 2021.
  
  
• Vendor discounting also expanded through 2022. However, in the three months to February, the national median vendor discounting rate contracted slightly on the three months to January.
  
  
• In the four weeks to 5 March 2023, the volume of new listings totalled 38,479 nationally. While new listings have seen a seasonal lift, new listings are still -12.7% lower than the previous five-year average.
  
  
• The combined capital cities clearance rate averaged 65.8% in the four weeks ending 5 March 2023. While this was a much stronger result than in the final weeks of 2022 (averaging 55.1%), auction volumes are still low relative to where they were this time last year.
  
  
• Annual growth in rent values held steady on the previous month in February, at 10.1%. Annual growth in Australian rent values was 10.2% in the 12 months to December, a record high. The most rapid annual rise is evident in unit rents across Sydney, Melbourne and Brisbane, where rents have increased around 14 to 17% annually.
  
  
• The chart of the month shows a turn in the tide of supply for Hobart. Monthly listings volumes are 73.4% higher than a year ago, as properties take longer to sell, and listings volumes move toward the decade average.
  
  Download the report here