Property prices have already peaked, CoreLogic data reveals
The days of a quick turnaround on property may have passed
< 1 min
The number of properties selling at a loss is on the rise, CoreLogic reports.
The financial services company’s latest Pain & Gain Report, which examined about 102,000 property sales that happened in the June quarter revealed that profit-making sales plateaued at 93.8 percent compared to the previous three months. In the three months to April, profit-making sales hit a peak of 94.1 percent.
The peak aligned with the first of the RBA’s cash rate increases and consequent interest rate hikes.
“This particular Pain & Gain report provides a line in the sand and confirms the moment when the housing market peaked and started to turn,” head of research at CoreLogic, Eliza Owen said. “The figures align with peak growth in our national Home Value Index and highlights the decline in the rate of profit-making sales, which has been largely influenced by an increase in the rate of loss-making resales in Sydney and Melbourne.”
The greatest losses were felt in Sydney and Melbourne. Loss making sales in Sydney increased by 160 basis points to 6.4 percent while Melbourne experienced a 50 basis point hike.
The news was more positive in some of the smaller capitals, with Hobart and Canberra coming out on top with 99.1 percent of resales experiencing gains.
Perhaps not surprisingly, at a national level longer hold periods were associated with greater gains. The report revealed that property owners who sold after 30 years achieved a median nominal return of more than $800,000.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
Buyers are moving there in their droves while existing residents know they’re on a good thing
2 min
The Australian housing market is rapidly evolving, with new research revealing changing activity in regional and city areas.
The latest Regional Movers Index from the Commonwealth Bank showed the exodus from Australian cities to the regions is significantly exceeding pre-COVID movements, sitting at 19.8 percent higher. Even more revealing is data which showed relocations are 1.8 percent up on the average recorded during the height of the lockdowns. At the same time, people in regional areas are staying put.
The report is a partnership between the Commonwealth Bank and the Regional Australian Institute. RAI CEO Liz Ritchie said the regions have become the permanent home of choice for more Australians.
“The inter-regional migration index —which tracks regional to regional relocations — has fallen by 5.1 percent, suggesting that more regional residents are content to stay where they are. With the continuing strong jobs market across regional Australia, increasing city property prices and ongoing cost-of-living pressures, it’s no surprise the regions remain desirable,” Ms Ritchie said.
She said this had significant implications for planners, with a better understanding of infrastructure needs required by planners.
“Regional Australia is truly the nation’s new frontier. There are so many opportunities in our regional communities, but likewise we know there are challenges. Housing for example remains a key ongoing concern in many communities,” she said. “Regional Australia is growing and for that to continue we need adequate foundations. The time to lay them is now.”
Among the areas to benefit from this shift over the past quarter was the Hunter Valley city of Maitland in NSW which saw a 3.4 percent increase in net migration from the cities and other regional areas. Long seen as the less desirable locale in the wine growing region, Maitland has attracted more buyers looking for an affordable home with lifestyle benefits. CBA Executive General Manager Regional and Agribusiness Banking Paul Fowler said it was an area on the rise.
“There is significant development happening around Maitland, with extensive land releases for residential, industrial, commercial and retail fuelling strong employment and construction industry opportunities,” Mr Fowler said.
“Maitland is also set to benefit from major investments in the area including the nearby Newcastle Airport which will welcome international flights from 2025, further enhancing the region’s accessibility and economic profile.”
And while Melbourne property prices continue to experience a lull, it’s a different story outside the capital, with regions closer to main city centres performing particularly well.
“A move to regional Victoria remains on trend among those relocating, with the state’s regional areas experiencing the largest surge in popularity in the 12-month period to September 2024, with its share of net regional inflows rising from 21 percent to 30 percent,” Mt Fowler said. “Trending scenic LGAs like Queenscliffe on the coast, as well as Moira, Wangaratta and Strathbogie located further north, offer attractive and more affordable lifestyle opportunities for many Australians.
“With more corporate employers setting up or relocating to Geelong, Queenscliffe’s proximity to Greater Geelong and the Melbourne CBD means more regional Australians can enjoy diverse employment opportunities while living in a beautiful location with enhanced lifestyle opportunities.”
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
