🎧 In this month’s Property Trio market update, Cate, Dave and Mike unpack the latest July figures and look beyond the headlines to understand what is actually happening across Australia’s property markets.

National property values fell 0.7% in July, with combined capital cities down 0.9% and regional markets proving more resilient. But the trio questions whether the headline figures are already lagging behind conditions on the ground, particularly as Cotality revises previous months’ results to reflect steeper declines.

🏡 Melbourne gets plenty of attention. With Melbourne sitting well below Sydney and other major capitals on price, could affordability, stronger rental yields and interstate migration provide the ingredients for greater resilience? Cate shares what she is seeing from buyers relocating from Sydney, Brisbane and Canberra, while remaining cautious about calling a bottom.

The discussion also turns to rents and rental yields, with rents continuing to rise at around 5.9% annually, adding approximately $40 per week to the median rent. What happens if investor numbers continue to fall while rental supply tightens? And could rising yields eventually make established property more attractive to investors again?

📊 Listings are another crucial piece of the puzzle. The trio explores the difference between new listings, total listings and inventory, including the growing number of older properties remaining on the market. They also examine why sellers appear increasingly reluctant to list in Melbourne and Sydney.

Finally, the conversation turns to interest rates, inflation, productivity and construction costs, including the RBA’s warning that another rate rise remains possible. With construction productivity severely lagging other industries, weakening development feasibility and data centres competing for skilled trades, the trio considers what this could mean for future housing supply.

A comprehensive July market update covering prices, rents, listings, interest rates and the forces shaping the next phase of the property cycle.

🏠 Tune in to hear more!…

Resources:

o   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

o   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

o   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

o   Ep. 361: Are Government Property Incentives Helping Buyers or Heating the Market?

o   Ep. 364: The Budget Aftershock – What Comes Next for Property Prices and Yields & What Does a ‘Perfect’ Investment Look Like Now?

Upcoming ep: #376: The Housing Downturn Is Here: What Happens Next?

Charts sourced from Core Logic