🎧 In this month’s Market Update, the Trio return from a short break to unpack a fascinating and complex March, where strong national growth figures collide with softening sentiment and emerging uncertainty.

Despite headlines suggesting a downturn, the data tells a more nuanced story. National dwelling values are still tracking at close to 10% annual growth, with standout performances from Perth, Brisbane, and Darwin. Perth, in particular, continues its remarkable run, surpassing a $1 million median house price and overtaking Canberra. Meanwhile, Sydney and Melbourne recorded slight monthly declines, prompting media speculation. But as the Trio explains, one month does not make a trend.

A key theme this month is segmentation. Lower-priced markets and entry-level properties are outperforming, while upper quartiles, (particularly in Sydney), are feeling the strain of borrowing constraints and global volatility. This divergence is creating very different experiences depending on where buyers sit in the market.

The Trio also explore shifting sentiment. Consumer confidence has dropped sharply….. worse than early COVID levels. This has been driven by cost-of-living pressures, global instability, and interest rate concerns. This is flowing through to reduced buyer urgency, fewer new enquiries, and a noticeable pause in decision-making, particularly from investors.

At the same time, rental markets remain particularly tight. Vacancy rates are hovering around 1%, and rents are rising again, adding further pressure to household budgets and inflation.

Cate highlights a critical insight for buyers: periods like this, (when sentiment dips but fundamentals remain intact), can present rare opportunities. With less competition and more negotiating power, strategic buyers may find themselves in an advantageous position.

As always, the Trio cut through the noise to reveal what’s really happening beneath the headlines… and what it means for buyers, investors, and the broader market.

🏠 Tune in to hear more!…

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: #359 – Listener question on refinancing

Charts sourced from Core Logic, Westpac ABS and SQM