The national monthly growth rate has rebounded slightly, with house values up 0.7% over March. This is despite the country’s two biggest markets both seeing a drop in median prices. But, with most of the smaller capitals experiencing stronger conditions, the general growth trend has continued for an 18th consecutive month.
This has really highlighted the two-speed nature of the national property market at the moment. While it seems that every capital has passed through its cyclical peak, Sydney and Melbourne are leading the downward trend. By contrast, Brisbane and Adelaide continue to report good numbers and the growth rate in these locations is largely holding steady.
Regional property markets also continue to perform well, easily outstripping the capitals on a combined basis. Regional South Australia has been a particular standout over the last month, with growth numbers hitting a new cyclical high. Regional Queensland and regional NSW also continue to see consistently strong growth figures.
Supply continues to be a significant driver of market performance, with advertised stock in Sydney and Melbourne largely returning to normal levels. By contrast, new listings continue to be well down in Brisbane, Adelaide, and regional areas. This, along with affordability and buyer sentiment, will be the major watchpoints for investors over the next few months.
On the rental side, yields are continuing to rebound from the historically low levels seen late last year. While this recovery is slow – gross yields were up 0.02% over March – it is expected to continue for the foreseeable future. Unit rents are also rising significantly faster than house rents as international migration restarts and inner-city areas come back to life.
A closer look at current market performance
Acknowledging how greatly market performance is varying across the country, we want to take a state-by-state look at recent results:
Suburb Spotlight: Beenleigh (QLD)
Once the heart of Queensland’s lucrative sugarcane industry, Beenleigh has undergone a significant image overhaul over the last few decades. First, its location halfway between Brisbane and the Gold Coast made it the ideal stopping point for tourists. Then, it needed to fight the stigma that came from being a predominantly working-class area with a strong connection to law enforcement.
As a result of this transformation, Beenleigh is now seen as an attractive option for young families and first-home buyers. In addition to being an easy commute from two large commercial centres, the town enjoys strong transport links. It also offers a great range of local amenities, including multiple shopping centres, schools, theatres, and sports facilities.
Property in Beenleigh is also quite affordable, with the median house price currently coming in at just under $430,000. This is despite prices increasing 6.4% over the last quarter and 22.92% over the last year. Units have also seen strong results, with the median price up 28.14% over the last two years, to $255,000.
In even better news for investors, Beenleigh has a significant rental population (45.3%) and a traditionally low vacancy rate. This has driven up the median rent rate, with houses attracting $375 per week and units getting $300 a week. Given the affordability of local property, this equates to yields of around 4.5% and 6.1% (respectively).
At Search Party Property, we specialise in developing tailored investment strategies and will work with you to come up with a suitable plan of attack. We also regularly assess your strategy ensuring that it is fit for purpose and delivering the desired results.