Steam comes out of the market as Australian property values cool
Stubborn inflation and just-out-of-reach interest rate cuts are the likely reasons for the softer end to the year, new data has revealed
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Australian capitals experienced their smallest rise in home values since January 2023, new data from CoreLogic has revealed.
The property data provider’s Home Value Index showed values rose by 0.1 percent over spring after 22 months of consecutive rises. CoreLogic predicted this could be close to the last rise in this cycle, with both the Sydney and Melbourne markets showing signs of cooling.
“The downturn is gathering momentum in Melbourne and Sydney,” said Tim Lawless, CoreLogic’s research director.“While the mid-sized capitals, which have dominated the growth cycle of late, are also losing steam.”
The trend was most obvious in Melbourne, with housing values recording drops in 10 of the past 12 months. Melbourne values fell by -1.0 percent in November, while Sydney experienced a fall of -0.5 percent. The report indicated that Sydney values had most likely peaked in August this year.
Some of the smaller capitals were also showing signs of a weakening in values, with Darwin down -0.7 percent and Canberra recording a drop of -0.3 percent.
“The mid-sized capitals and most of the regional ‘rest of state’ markets continue to provide some support for growth in the national index, but it is clear momentum is also leaving these markets,” added Mr Lawless.
However, it was a different story on the other side of the country, with Perth home values experiencing further growth. CoreLogic data showed values in the Western Australian capital up 1.1 percent over the month and 3.0 percent over the quarter. While the increases in values were the strongest amongst the capitals, CoreLogic noted that they were less than half that recorded in the June quarter, where they were at a robust 6.7 percent.
Mr Lawless pointed to a lack of movement in core inflation, as well as the diminishing likelihood of an interest rate cut early next year as factors in the subdued capital gains. Leading Australian economists are predicting a cut somewhere between February and May 2025.
“A lower cash rate will be a positive factor for housing markets,” Mr Lawless said. “Lower mortgage rates will provide a lift to borrowing capacity, and, along with lower inflation, should see an improvement in serviceability assessments and see a further rise in consumer sentiment.”
“A couple of rate cuts might be enough to shore up a declining trend in home values, but it is hard to see any material upward pressure returning until interest rates reduce more substantially and affordability barriers are less formidable.”
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For as little as $48,000, buyers can hold a three-bedroom luxury Eveleigh residence in Broadbeach, with completion not due until late 2028.
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Buyers eyeing Eveleigh Broadbeach no longer need to find a full deposit to lock in an apartment.
Using a deposit bond, purchasers can secure one of the development’s 94 premium residences for as little as $48,000, holding their apartment until completion in late 2028 without tying up hundreds of thousands of dollars in cash.
It’s a structure that’s already proving popular. Rather than a full cash deposit of 5 or 10 per cent, buyers pay a one-off fee for a deposit bond, a financial guarantee issued by an approved provider that provides sellers with the same security as cash.
If the purchase completes as agreed, the bond simply expires.
For buyers with sufficient assets but who would rather keep their money working for them, whether that’s an investment portfolio, proceeds from another sale, or savings earning interest, the deposit bond removes the pressure to find a lump sum upfront.
The apartment is secured, the cash stays liquid, and settlement isn’t due for more than two years.
Designed by Rothelowman and developed by Hirsch & Faigen, with construction by Maxcon, Eveleigh is a 30-level tower delivering just four residences per floor across two- and three-bedroom layouts.
Rather than traditional wraparound balconies, living spaces are brought directly to the glass, so the ocean horizon becomes part of the everyday experience rather than something viewed from behind a rail.
Residents will have access to a north-facing pool, hot and cold plunge pools, wellness facilities and indoor and outdoor entertaining spaces, along with a rooftop residents’ lounge offering panoramic coastal views.
The timing suits a market that isn’t slowing down. Broadbeach has recorded capital growth of 20 to 25 per cent year-on-year in some segments over the past 12 months, with vacancy rates sitting around one per cent.
Two-bedroom luxury apartments are achieving $1,500 a week in rent, three-bedroom more than $2,000, on a permanent, long-term basis.
“Secure now with just $48,000 and look forward to your new home in late 2028,” says LJ Hooker Broadbeach principal Matt Conduit.
To find out more about securing an apartment at Eveleigh Broadbeach with a deposit bond, contact Matt Conduit on 0418 741 949
*$49,500 payment is a deposit bond premium, based on a purchase price of $2,870,000. Subject to approved purchasers, Terms and conditions apply.
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