Property Investing Archives - Page 15 of 30

October 27, 2022

How Property Cycles Work

Depending on where you live, you would notice that the market value of properties often varies. Of course, you might be wondering, why the fluctuation? It’s simple. As house prices rise due to short supply, investors looking to turn a coin try and take advantage of the short supply. This means a sudden surge of properties for rent or sale and drastically reduces the need for supply. As a result of this, the market becomes more competitive which results in rent reductions and depreciated home values.

November 16, 2022

Property Market Update as of 31st October 2022

As of 31st October 2022 – Property Market Update

In somewhat surprising news, the rate of decline in Australian property values has slowed for the first time in months. After dropping 1.6% in August, the national median dwelling value fell a slightly more modest 1.4% over September. This was driven by slowing declines in most markets, with only Adelaide and Perth seeing accelerating value losses. It is the opposite story for the rental market, with the national median rent rising by 0.6% over the month. This is the lowest monthly increase since December 2021 and well down from the cyclical peak of 1.0% seen in May. While the slowing growth in rents is consistent across most markets, it has been particularly pronounced in regional areas.

December 14, 2022

As of 30th November 2022 – Property Market Update

While the national median dwelling value has fallen for a seventh consecutive month, November saw the smallest decline (1.0%) since June. This is largely being driven by the easing rates of decline in both Sydney and Melbourne. That said, many other capital and rest of state markets have also seen their rate of decline start to slow. On the rental side, markets remain extremely tight, with vacancy rates still sitting below 1% in most areas. This is continuing to put upward pressure on rents, though the rate of growth is easing in most locations. It is also combining with declining property values to drive rental yields back up from their recent record lows.

January 19, 2023

As of 31st December 2022 – Property Market Update

After slowing over the last couple of months, the rate of decline in the national median dwelling value has increased slightly. The 1.1% loss recorded in December means that the median Australian property price finished the year 5.3% lower than it started it. This is the first annual decline since 2018 and the largest since 2008.