Property takes a holiday as the long weekend looms
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Property takes a holiday as the long weekend looms

Schedule auctions are down but there’s still reasons for the market to be cheerful

By KANEBRIDGE NEWS
Thu, Jun 6, 2024 2:23pmGrey Clock < 1 min

There’s nothing like a long weekend to put a dampener on the property market. Auction activity is set to drop dramatically over the King’s birthday weekend to almost half the number from last week.

Data from CoreLogic shows that 1,327 homes are scheduled for auction across the capitals this weekend, down -44.2 percent on the previous week. Research analyst for CoreLogic Australia, Caitlin Foo says the fall in numbers is most evident in Melbourne where auctions have hovered over 1,000 homes for the past five weeks. This weekend, figures have fallen by -56.7 percent to just 480 homes.

Source: CoreLogic Australia

In Sydney, there are 537 homes scheduled to go under the hammer, down -40.3 percent on the previous weekend when 899 homes were auctioned. It’s a slightly less significant story in the smaller capitals with 130 homes set for auction in Brisbane (down from 141 the previous week), 99 in Adelaide (down from 152) and Canberra at 65 (down from 68).

While it’s a slower week for the market, the numbers are still far better than they were this time last year, indicating a consistent sense of confidence in residential property. 



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Property values have experienced strong growth around the country, but there are two highly desirable areas where oversupply is putting downward pressure on sales

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While property values are rising strongly in most markets across Australia, it’s a vastly different story in Victoria and Tasmania, new data from CoreLogic shows. Over the 12 months to May 31, the median house price lifted just 1.8 percent in Melbourne and fell 0.6 percent in regional Victoria. The median dipped 0.1 percent in Hobart and ticked 0.4 percent higher in regional Tasmania. This is in stark contrast to Perth, where values are up 22 percent, and regional Western Australia, up 14.8 percent; as well as Brisbane, up 16.3 percent, and regional Queensland, up 11.8 percent.

CoreLogic Head of Research, Eliza Owen says an oversupply of homes for sale has weakened prices in Victoria and Tasmania, creating buyers’ markets.

On the supply side, there has been more of a build-up in new listings than usual across Victoria, even where home value performance has been relatively soft,” Ms Owen said. Victoria has also had more dwellings completed than any other state and territory in the past 10 years, keeping a lid on price growth. The additional choice in stock means vendors have to bring down their price expectations, and that brings values down.”

Melbourne dwelling values are now four percent below their record high and Hobart dwelling values are 11.5 percent below their record high. Both records were set more than two years ago in March 2022. The oversupply has also affected how long it takes to sell a property. The median days on market is currently 36 in Melbourne and 45 in Hobart compared to a combined capitals median of 27. It takes 55 days to sell in regional Victoria and 64 days in regional Tasmania compared to a combined regional median of 42 days.

Changes in population patterns have also contributed to higher numbers of homes for sale in recent years. Since COVID began in early 2020, thousands of families have left Melbourne because working from home meant they could buy a bigger property in more affordable areas. While many relocated to regional Victoria, a significant proportion left the state altogether, with South-East Queensland a favoured destination. Meantime, Tasmania’s surge in interstate migration during FY21 was short-lived. Data from the Australian Bureau of Statistics shows the island state has recorded a net loss of residents to other states and territories every quarter since June 2022.

Record overseas migration has more than offset interstate migration losses, thereby keeping Victoria’s and Tasmania’s populations growing. However, the impact of migrants on housing is largely seen in the rental market, so this segment of population gain has done little to support values. Growth in weekly rents has been far stronger than growth in home values over the past year, with rents up 9 percent in Melbourne and 4.8 percent in regional Victoria, and up 1 percent in Hobart and 2.7 percent in regional Tasmania.

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11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

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Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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