April 19, 2024
Like any market, property prices are a consequence of supply and demand.
For many months now, we’ve heard a similar refrain concerning the ‘chronic undersupply’ of housing across the market. Housing Australia has even forecast a national shortfall of 100,000 homes in just four years’ time.
This being true, how is it possible for Melbourne to be oversupplied with property?
Based on CoreLogic figures, Melbourne saw 90,000 total property listings across 2023, alongside just 81,203 total sales.
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April 10, 2024
In an impressive display of resilience, March has seen Perth, Brisbane, and Adelaide continue to break records in the property market. The buoyancy in these cities is particularly noteworthy against a backdrop of national housing market softening in other areas. This month, Perth has continued its ascendant trajectory with a 1.2% growth, contributing to a 5.6% quarterly rise which is the highest across all state capitals.
Brisbane, not far behind, has witnessed a 1.1% growth over the month, aligning with a broader trend of property value increases in Queensland. Adelaide, however, steals the spotlight with a 1.4% rise in dwelling values, the highest monthly growth recorded, and an impressive 3.3% increase over the quarter.
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April 9, 2024
Looking at the latest capital city property figures from CoreLogic, Australian real estate has one obvious outlier.
Right now, Perth, Brisbane and Adelaide remain at record high prices, while other cities like Hobart, Canberra and Melbourne are feeling the serious impact of rate hikes, still below their 2022 price peaks.
However, astonishingly, Darwin remains 6.6% below its record property market, a level it hasn’t exceeded since May of 2014 – almost a decade ago!
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April 3, 2024
Informational asymmetry, where one party in a transaction possesses more or superior information than the other, is a concept well-documented in economic theory.
It can be a big problem, and its effect is felt uniquely within the real estate market – far more than in other asset classes like stocks, commodities or cryptocurrencies.
Compared to many of these alternative investments, traded in vast quantities across highly regulated and transparent markets, with no informational lag, real estate is inherently unique.
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March 26, 2024
Informational asymmetry, where one party in a transaction possesses more or superior information than the other, is a concept well-documented in economic theory.
It can be a big problem, and its effect is felt uniquely within the real estate market – far more than in other asset classes like stocks, commodities or cryptocurrencies.
Compared to many of these alternative investments, traded in vast quantities across highly regulated and transparent markets, with no informational lag, real estate is inherently unique.
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March 19, 2024
Recently, real estate firm CBRE released the results of their residential valuer survey for Q1 of 2024.
The results of this survey offer some valuable insights into the observations of ~190 CBRE valuers around the country.
In today’s article, we’re taking a look at some of the key results, and offering some brief commentary of our own:
According to CBRE’s report, 6x as many valuers are expecting ‘strong to very strong’ demand, Australia wide, as opposed to ‘soft or very limited’ demand.
Valuers note also that demand has been the most significant in a few key markets, namely – Perth, Adelaide and Brisbane.
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March 12, 2024
The market continues to display considerable diversity across regions and cities. In the past month, overall growth was at 0.6%, up from 0.4% in January. Perth (1.8%), Adelaide (1.1%), Brisbane (0.9%) and Canberra (0.7%) outpaced this average.
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March 11, 2024
If you're among those seeking relief from the burden of high home loan rates, there might be a glimmer of hope on the horizon.
By now, we’ve all heard that inflation has been coming down. As it stands, a return to target inflation isn’t far away, but perhaps a more pressing concern for the RBA is unemployment and productivity.
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March 11, 2024
Nationwide, waterfront properties are generally worth over 60% more than inland properties, according to some estimates. And as you might expect, this premium tends to be the highest within our capital cities.
For instance, waterfront properties in Sydney are, on average, worth almost double the value of inland properties – the highest waterfront premium in the world. But it isn’t just the inner cities that continue to produce a major waterfrontage premium. Tourist hubs like Byron Bay, the Mornington Peninsula, the Sunshine Coast, the Gold Coast or the Central Coast are all coastal hotspots for attractive lifestyle properties. In areas like these, even inland properties can feel the knock-on effects of high waterfront demand.
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February 26, 2024
In our previous article, we explained how Hedonic Value Indices (HVIs) such as those published by CoreLogic, can measure changes in property market values, despite only a small number of houses having recent sale prices.
From that article, you’ll remember that the accuracy of a HVI relies upon details about property quality – bedroom counts, bathroom counts, land size, construction date, are all things that HVIs use to better provide context for sales that have taken place.
In other words, a house selling for double the local median, probably has much better features than other houses nearby. Knowing this, we don’t conclude that the value of the entire area has doubled. Since we’ve accounted for the higher quality of that property, we know it was an outlier, and we can produce a more accurate estimate of market change.
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