State of the Hous­ing Mar­ket Re­port – Novem­ber 2018

Wangaratta Chronicle - North East Property Guide - - PROPERTY GUIDE - Writ­ten by | realestat­e­view.com.au in ACT

You sim­ply can’t es­cape the doom and gloom sto­ries about the prop­erty mar­ket right now.

In the main­stream me­dia, we’ve been bom­barded with every pos­si­ble fa­tal­is­tic pre­dic­tion and scary sce­nario – it’s enough to have in­vestors and home­own­ers alike shak­ing in their boots! How­ever, there are a few im­por­tant things to note.

Sure, prices have taken a down­ward turn – but not in the dra­matic way the net­work news would like you to be­lieve. The ma­jor­ity of price falls have been oc­cur­ring in just two cities – Syd­ney and Mel­bourne – with other parts of the coun­try con­tin­u­ing to hold strong. In Bris­bane, Can­berra and Ho­bart, there’s no a mad panic, be­cause prices in these cities are steady and sta­ble.

In fact, in the year to September, prop­erty val­ues in Ho­bart ac­tu­ally gained 9.3 per cent, while in Can­berra a mod­est 2 per cent growth was cer­tainly prefer­able to the dips seen else­where.

Let’s take a look around the na­tion, and ex­am­ine the cur­rent state of play of the prop­erty mar­ket in our cap­i­tal cities…

Syd­ney

It dragged the rest of the coun­try kick­ing and scream­ing into the real es­tate boom, and now Syd­ney is prov­ing to be ahead of the pack once again, lead­ing the down­turn in prop­erty prices. The mar­ket in our largest cap­i­tal peaked in 2017, with me­dian val­ues now sit­ting at $976,365 for houses and $734,900 for units. Over­all dwelling val­ues are down 6.1 per cent over the past 12 months, with 1.5 per cent of this loss oc­cur­ring in past three months. Houses are fall­ing with greater speed than apart­ments, with stand­alone prop­er­ties los­ing 7.6 per cent, while those in high-den­sity liv­ing have only seen a dip of 2.6 per cent. Buyer con­fi­dence is also low, with ac­tiv­ity down al­most 20 per cent.

It’s im­por­tant to re­mem­ber that the past five years have seen me­dian dwelling val­ues in Syd­ney in­crease by 51 per cent – so in the scheme of things, the cur­rent slump is no more than a blip on the radar. Even fac­tor­ing in the price slide since 2017, the av­er­age an­nual growth over the past decade is sit­ting at a healthy 6.2 per cent.

Mel­bourne

Never one to let Syd­ney steal the lime­light, Mel­bourne has also peaked – a lit­tle later than Syd­ney, to­wards the end of last year. Prop­erty val­ues across our most live­able city cur­rently hover at around 4.4 per cent be­low the peak of the boom, and it’s the top end of the mar­ket that’s suf­fer­ing the most, with high-end prop­er­ties fall­ing by 6.7 per cent over the past 12 months.

Days on mar­ket have in­creased, from 30 days to 41 since this time last year, and ven­dor dis­count­ing is also on the rise. With a me­dian unit price of $552,250 and a me­dian house price a touch un­der $800,000, the down­ward trend cer­tainly hasn’t been the op­por­tu­nity to break into the mar­ket that first home­buy­ers have been hop­ing for – yet.

Again, like Syd­ney, the cur­rent con­di­tions haven’t done much to dampen the longer-term ef­fects of the boom, with val­ues up a whop­ping 77.3 per cent over the past decade.

Bris­bane

Prop­er­ties are selling faster and ven­dors are hold­ing firm on their prices up in Brisve­gas, where the mar­ket has reached a new all-time high. The me­dian house price is now $539,374, while units are sit­ting at $380,866. Mi­gra­tion and de­vel­op­ment is set to drive prices higher in the com­ing years, and the signs are look­ing pos­i­tive for those who own prop­er­ties in the sunny Queens­land cap­i­tal.

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