National Housing Affordability Declines
However, New South Wales and South Australia saw improvements in affordability in the quarter.
However, New South Wales and South Australia saw improvements in affordability in the quarter.
Both housing and rental affordability has declined, the Real Estate Institute of Australia’s Housing Affordability Report has found.
Although housing affordability improved in New South Wales and South Australia and remained steady in Western Australia and the Australian Capital Territory, it declined in Victoria, Queensland, Tasmania and the Northern Territory.
REIA President Adrian Kelly stated that housing affordability across Australia has declined, with the proportion of income required to meet loan repayments increasing to 34.7%, a rise of 0.1 percentage points over the quarter.
However, when compared to the same quarter of 2020 – housing affordability improved by 0.5 percentage points.
Meanwhile, rental affordability declined with the proportion of income required to meet median rents increasing to 24.4%, an increase of 0.4% over the March quarter and an increase of 0.7% over the past 12 months.
Mr Kelly added that the number of first home buyers had decreased by 4.4% over the quarter, but a rise of 62.6% over the last 12 months. Now, first home buyers make up 40.% of owner-occupier dwelling commitments.
“Over the March quarter, the average loan size grew to $506,340, an increase of 1.0% over the quarter and a rise of 2.6% over the past 12 months. During the quarter, the average loan size increased in all states and territories except New South Wales and South Australia. Over the past 12 months, the average loan size rose in all states and territories, ranging from 2.3% in Victoria to 10.8% in Tasmania,” Mr Kelly said.
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Buyers are moving there in their droves while existing residents know they’re on a good thing
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.”
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Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.