INTEREST RATES, A PANDEMIC RESET AND EXTREME WEATHER EVENTS - THE AUSTRALIAN PROPERTY MARKETS THAT FLEW HIGH OR FLATLINED | Kanebridge News
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INTEREST RATES, A PANDEMIC RESET AND EXTREME WEATHER EVENTS – THE AUSTRALIAN PROPERTY MARKETS THAT FLEW HIGH OR FLATLINED

There’s some surprise winners and losers among CoreLogic’s 2022 Best of the Best list

By KANEBRIDGE NEWS
Mon, Dec 19, 2022 10:16amGrey Clock 2 min

It’s been the best of times and the worst of times, to paraphrase Dickens, for players in the Australian property market this year.

While areas such as the Adelaide suburbs showed strong growth, with Davoren Park house values rising by 34.7 percent and unit values in Seacliff Park gaining 41.4 percent, CoreLogic data reveals houses in the Sydney suburbs of Narrabeen, Surry Hills and Redfern dropped by more than -25 percent. Unit values in Centennial Park and Mona Vale fell by -23.1 percent and -20.8 percent respectively.

CoreLogic economist Kaytlin Ezzy said the Adelaide market had proven to be remarkably resilient.

“Adelaide’s resilience has been a consistent feature of the housing market in 2022,” she said. “While down -0.9 percent from the July peak, dwelling values across the city are still 13.4 percent above the level recorded this time last year. 

“Adelaide’s relative affordability and persistently low advertised stock levels have helped insulate it from the worst impacts of rising interest rates.” 

In the regions, Bingara in the New England district of NSW experienced 36.2 percent growth in house values, followed by the South Australian towns of Cleve (35.3 percent), Solomontown (34.9 percent) and Streaky Bay (34.7 percent). The NSW town of ​​Gobbagombalin in the Riverina saw house value gains of 33.5 percent.

It has been more of a rollercoaster ride in the popular lifestyle locations of the Illawarra, Southern Highlands and Shoalhaven in NSW and the Sunshine and Gold Coasts in Queensland, which experienced the greatest ‘peak to trough’ values.

Four of the five most expensive Australian suburbs for houses are from Sydney, according to CoreLogic’s 2022 Best of the Best list, with Vaucluse topping the list with a median value of $7,943,965, followed by Bellevue Hill ($6,882,484), Rose Bay ($5,660,910) and Dover Heights ($5,087,211). The Melbourne suburb of Toorak rounded out the top five, coming in at $4,955,630.

The five most expensive unit values were from Sydney’s inner ring, with Point Piper leading the way at $2,895,563. It was followed by Darling Point, Millers Point, Milsons Point and Kirribilli.

 

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The Australian capital setting a new record for property value falls

Property values have fallen hard and fast in this popular city, but it’s done little to dent pandemic rises

By KANEBRIDGE NEWS
Mon, Jan 30, 2023 2 min

Highest property values, biggest dip the next. That’s the outcome for Australia’s northernmost capital on the east coast, with Brisbane property values recording their largest and fastest decline, data from Corelogic reveals.

The fall comes just seven months after values hit their peak after a population surge driven by the pandemic saw an increase of 43 percent. Home values hit a record high on June 19, 2022 but have since declined 10.9 percent, in parallel with eight consecutive interest rate rises since April last year.

Historically, peak-to-trough declines in Brisbane have lasted 14 months and have ranged from value drops of -2.9 percent to -10.8 percent. While the new record is just -0.1 percent compared with previous figures, that fall came over 21 months between April 2010 and January 2012. The latest decline was a much swifter seven month drop.

CoreLogic head of research Eliza Owen said it is worth putting the Brisbane figures into context with the rest of Australia’s capital cities, as well as considering the significant rise in property values in the Queensland capital over the pandemic.

“Brisbane now stands out as one of two capital city markets with record declines, the other being Hobart,” Ms Owen said. “Sydney continues to have the largest peak-to-trough falls of the capital city markets (currently at -13.8 percent), while peak-to-tough falls remain mild in some cities (such as Perth, where values are down just -1.0 percent from a recent peak in August 2022).” 

“The record fall in Brisbane home values has not made much of a dent in the gains made during the upswing. The fall in the Brisbane daily HVI follows an upswing of 43.5 percent between August 2020 and 19 June 2022, which was the fastest trajectory of rising values on record. This leaves home values across Brisbane 27.9 percent higher than at the previous trough in August 2020.” 

The median dwelling value in Brisbane jumped from $506,553 at the start of the pandemic in March 2020 to $707,658 by the end of last year, Ms Owen said.

“Despite the large decline from peak, Brisbane maintains the third highest gain in value of the capital cities since the start of the pandemic,” she said. 

“Only Adelaide and Darwin, which are 42.8 percent and 29.6 percent higher respectively than at the onset of the pandemic, have performed stronger. 

“For this reason, there is marginal risk of negative equity for Brisbane homeowners, with the exception of very recent buyers, who purchased around the peak in June 2022 with less than a 20 percent deposit.” 

However, there are signs of resilience in the market. Brisbane remains a more affordable option compared with the other east coast capitals, Ms Owen said.

Although housing values remain higher than pre-COVID levels, Brisbane retains a lower price point than Sydney, with a $435,170 difference in median house values and $280,749 difference in median unit values,” she said. 

“The gap between Brisbane and Melbourne housing values is also significant, with a $119,697 gap between median house values and $97,692 difference in median unit values.

“This could encourage ongoing housing demand from those willing to migrate to the state, or own an interstate investment.” 

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