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

National property values fell 0.9% in July, with combined capital cities down 1.1% and regional markets yet again 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. As Cate notes from the coalface, owner occupier buyers are returning, albeit tentatively.

🏡 Darwin remains strong, while Brisbane’s price falls are closer to Sydney and Melbourne’s this month. Hobart shows modest resilience, but the Trio anticipate next month’s capital growth will be negative across the board.

The discussion also turns to rents and rental yields, with house rents continuing to outpace unit rents. The Trio note that with the exception of Canberra units, every capital city’s rental growth is tracking above target inflation.

📊 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 Adelaide’s listing figures, noting that the build-up of both new listings and total listings is potentially a forward indicator for a slowing market.

“The Westpac–Melbourne Institute Consumer Sentiment Index declined 5.2% to 84.4 in September from 88.9 in August.” The Trio discuss the effect of interest rate rise commentary, correcting markets and the impact of heightened cost of living. They note the “Time to Buy a Dwelling” index in particular, and “Family Finances vs a Year Ago.”

Finally, the conversation turns to interest rates, inflation, and global economic instability, including the RBA’s signal that another rate rise remains likely. With construction productivity severely lagging other industries, weakening development feasibility and a shortage of skilled trades, the trio considers what this could mean for future housing supply.

A comprehensive August 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: #380: Buying interstate; the preparation, the risks and the rewards

Charts sourced from Core Logic, Westpac, and SQM