Property Update - October 2023

Monthly highlights
 

• CoreLogic estimates put the combined value of residential real estate at $10.1 trillion.

• National home values rose 2.2% in the three months to September, easing slightly from a recent high of 2.4% growth over the three months to August.
  

 

• The rolling 28-day change in the combined capitals home value index was 0.8% in the 28 days ending October 8th

 

• CoreLogic estimates there were 39,216 sales in September nationally, slightly lower than the five-year average of 40,607 per month. Capital city sales totaled 24,996, which was -1.8% below the historic average.

 

• The median amount of time it took to sell property in the September quarter was 30 days nationally, and has hovered around 30 days since the April rolling quarter. Regional Australia has seen a greater lift in time on market year-on-year, which corroborates other metrics of softer market performance in the regions in the past 12 months.

 

• At the median level, vendors are now offering less of a discount on their property. The median vendor discount nationally was -3.8% in the three months to September, up from a recent low of -4.3% at the end of last year. 

 

• At the national level, there were 38,428 new listings observed over the four weeks to October 8, 2023. New listings are trending higher into the start of the spring selling season, and are just -3.0% lower than the historic five-year average.

 

• New listings are now trending higher than a year ago across five capital city markets. Total listings are accumulating in some markets, and remain higher than a year ago in Melbourne, Hobart, Canberra and some regional markets.

 

• Australian rent values increased 0.7% in September, taking the national annual increase to 8.4%. Annual growth in rent values remains elevated on the previous decade average, and accelerated slightly in September.

 

• Gross rent yields were recorded at 3.71% nationally in September, up from 3.51% a year ago. As capital growth trends slightly outpace growth in rent values, there may be a compression in gross rent yields in the near term. 

 

• Dwelling approvals jumped 7.0% in August, driven by a 8.8% lift in unit approvals and a 6.0% lift in detached house approvals. Overall, new dwelling approvals have been tracking around -21% below the decade average since the start of the year, with high interest rates, land values and construction costs contributing to subdued development application levels. 

 

• The RBA held the cash rate at 4.1% for the fourth consecutive month

 

• Mortgage originations for ‘riskier’ types of lending continued to trend lower through the June quarter of 2023.

 

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