Investment Property Market Snapshot
Latest industry statistics and analysis.
SQM Research has revealed capital city asking rents for houses fell over June by 0.5 per cent to $551 p/w. Unit asking rents slipped 0.2 per cent to $444 p/w. Over the year, asking house rents rose 0.4 per cent, while unit asking rents rose by 0.9 per cent. Asking rents: Canberra $631 p/w houses / $450 p/w units; Sydney $714 / $522; Darwin $538 / $402; Brisbane $449 / $369; Adelaide $379 / $300; Hobart $400 / $350; Melbourne $529 / $411; and Perth $421 / $324.
Vacancy rate holds steady
The national vacancy rate was unchanged at 2.1 per cent in May with 69,152 vacancies Australia-wide, according to data from SQM Research. Vacancy rates: Adelaide 1.3 per cent; Perth 4.1; Melbourne 1.4; Brisbane 2.9; Canberra 0.8; Sydney 2.5; Darwin 3.5 and Hobart 0.7.
Median prices decline
According to REIA’s Real Estate Market Facts report for the March quarter, weighted average median house prices declined by 0.1 per cent to $770,086 and other dwellings declined by 0.2 per cent to $593,183. Median house prices rose in Hobart, Melbourne and Adelaide, but declined in Darwin, Perth, Sydney, Brisbane and Canberra.
Premium property declines while affordable property rises
Analysis of property values by CoreLogic has found that across the capital cities, the most expensive 10 per cent of properties are seeing values drop, while the most affordable 10 per cent are seeing values rise. Over the year, national dwelling values declined 0.4 per cent, with the most expensive 10 per cent recording falls of 5 per cent, while the most affordable 10 per cent saw values rise 1.8 per cent.
180 day cap on Airbnb
The NSW Government has announced a cap of 180 days per calendar year on empty properties, in Sydney, rented out using Airbnb. Under the new laws, strata corporations will also have the power to ban Airbnb in their building if 75 per cent of owners agree. Outside of Greater Sydney, local councils will be able to impose their own caps, which cannot be lower than 180 days per year.
Investor loans at two-year low
Housing loans for investors are at their lowest point since 2016, according to new ABS data. The value of investor lending declined from $12.6 billion to $10.7 billion over the year to April. Since reaching a peak in mid-2015, investor lending has fallen 27.4 per cent “as a consequence of punitive restrictions on investors,” HIA principal economist Tim Reardon said.
Small deposit loans hit historic low
According to APRA’s quarterly property exposures statistics, the value of new mortgages written in the March quarter, with an LVR of more than 90 per cent, dropped to $5.79 billion, making it the lowest value since records began in 2008. The value represents just 6.67 per cent of all new loans approved in the quarter.
Rental affordability declines
The Adelaide Bank/REIA Housing Affordability Report for the March quarter has found rental affordability has fallen. The proportion of median family income required to meet rental payments increased by 0.1 per cent, to 24.8 per cent. Rises were recorded in all states and territories except WA and the NT, where affordability improved.