Property Update - May 2022

Monthly highlights

• The combined value of residential real estate in Australia climbed to $9.98 trillion at the end of April, just under the $10 trillion mark.
  
  
• Dwelling values in Australia are 16.7% higher over the past 12 months, down from a cyclical peak of  22.4% in the 12 months to January 2022.
  
  
• The highest annual growth rate in dwelling values among the regional and capital city dwelling markets was across Brisbane, at 29.3%. The lowest rate of appreciation in values was across Regional NT, which each saw a 6.3% rise over the year.
  
  
• In the three months to April, capital city homes saw upper quartile values fall -0.5%, compared to a rise of 3.6% across the lowest quartile of values.
  
  
• Sales volumes rose 13.7% in the 12 months to April, to an estimated 597,506. Sales volumes were an estimated 117,698 through the three months to April, which is down on the same period of 2021, but 17.1% higher than the previous 5-year average.
  
  
• At the national level, properties are taking slightly longer to sell. In the three months to April, the median days on market was recorded at 27, up from a recent low of 21 days in the three months to December.
  
  
• Discounting levels are gradually expanding from recent lows of 2.8% nationally, and rose to 3.1% in the three months to April 2022. Discounting remains tighter across the combined regional markets.
  
  
• At the national level, the four weeks to 1st of May saw new listings trend 6.3% higher than the previous five-year average. However, new listings have dipped lower than this time last year.
  
  
• Clearance rates averaged 63.2% in the four weeks to May 1st, down from 77.6% in the equivalent period of 2021. Clearance rates are expected to trend lower amid softer housing value growth.
  
  
• Growth in the Australian rental market has accelerated through the start of 2022. Monthly growth in Australian rent values was 0.9% national, pushing annual growth back up to 9.0% in the 12 months to April.
  
  
• Through April, Australian gross rent yields held at 3.23%, up from a recent low of 3.21% through January this year. Since January, gross rent yields in Sydney have lifted 9 basis points, and 7 basis points in Melbourne.
  
  
• Total dwelling approvals saw a relatively sharp drop of -18.5% through the month of March, driven by a -37.7% decline in unit approvals. While monthly movements can be quite volatile, unit approvals are still 14.9% higher in the 12 months to April 2022, compared to the previous 12 month period.
  
  
• Lending for property purchases increased 1.6% in the month of March, driven by investor lending (up $327 m, or 2.9%), and first homebuyer lending ($285m, or 5.9%). 

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