🎧 In this month’s Property Trio market update, Cate, Dave and Mike unpack the latest December monthly market figures.

Dave points out that we have experienced the highest national growth since 2021, and the Trio break down the star performers for the final month of the year. Adelaide and Perth continued their stellar run for December, yet Melbourne and Sydney marginally slipped back. The trio consider the reasons for this, circling stock levels, auction centric markets and price segmentation.

📈 Almost all cities and combined regions have eclipsed their last peak, but Hobart, Canberra, Melbourne, regional Vic and regional NT are still playing catch up.

Rents continue to deliver a pace with broadly outpaces target inflation, however the rate of rental growth has certainly eased across the various capitals.

Yields have continued to contract in the high growth markets, and Cate points out that Melbourne’s yield is now higher than Sydney, Adelaide and Brisbane’s gross rental yields.

Despite total listing activity sitting below historical levels, the listing volumes caught up in some of the capitals later in the year. Both Melbourne and Sydney’s December growth results could be apportioned to this heightened activity, while it’s easy to see that Adelaide, Darwin, Brisbane and Perth’s stellar performance are directly proportional to the stock shortage in these markets.

The Consumer sentiment index tells an interesting story, particularly when “Time to Buy a Dwelling” is contrasted to the same period, last year. Interest rate speculation doesn’t seem to have impacted sentiment for this measure as many would have imagined.

🏠 And on that note, the Trio noted Cotality’s “Chart of the month”, citing an episode that they shared with The Property Professor, Peter Koulizos in relation to the link between growth and interest rates.

Resources:

• Ep. 12: Property Cycle Management – why now is always the best time to buy if it suits your personal economy and you have a long-term property plan
• Ep. 158: How interest rate cycles have impacted the property market since 1990 when the RBA first started targeting the cash rate and some predictions on what will happen this time
• Ep. 164: Analysing regional locations – What investment principles can be gleaned from the highest performing regions in each state? Comparing capital city vs regional performance from 2003 – before and after covid
• Ep. 169: Houses vs units – Capital growth performance in capital cities and regions over the last 20 years and which locations have units outperformed houses and why?
• Ep. 313: The History of Property Prices After Rate Cuts – 40 Years of Data, Houses vs Units, Capitals vs Regions & Predictions

Upcoming ep: #341: Rules for Borrowers – The Real Effects on Borrowing Power & Market Stability

Charts sourced from Core Logic, ABS and SQM

And… don’t forget our LIVE Podcast Event – Thursday 5th March at Latrobe Golf Club – 8 Farm Road, Alphington, VIC.

Early bird tickets are now live, or our listeners can purchase a VIP ticket and meet the hosts in person before the event starts. Every attendee will receive a book that Cate has co-authored, and VIP attendees will get an additional copy of Dave’s book.

This will be an intimate live recording with the three of us…. real conversation, audience questions, a bit of banter, and the kind of discussion we usually only have behind microphones.

If you have enjoyed the podcast, this is a chance to experience it properly in the room. As a special bonus, we’ll also have the Property Professor himself as MC!

You can access tickets here.

Places are limited, and once early bird tickets are gone, remaining tickets will be full price.

We would love to see you there!

Warmly,

Mike, Cate and Dave