Your National Property Report
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open market Your national property report FIVE PROPERTY MARKET TRENDS FOR 2017 LIFESTYLE PROPERTY IN SYDNEY AND MELBOURNE HOLDING VALUE DIVERSE PERFORMANCE PREDICTED FOR 2017 Q1 JANUARY–MARCH 2017 Welcome to the latest LJ Hooker Open Market report Property markets around the country have kicked off data and commentary to do just that, ensuring that the new year at a fast pace with strong competition you are able to make sound real estate decisions. between buyers and listings picking up. However, home prices and activity in your Supply, interest rates and affordability are set to be neighbourhood are dependent on local market the big topics for housing markets this year and are conditions. To best understand how your suburb is expected to drive a diverse range of performances performing, we invite you to continue the conversation across each suburb. with us, your local LJ Hooker real estate specialist. As market dynamics change it’s important that you stay up to date with how key market fundamentals are performing. This report provides you with the latest Contents Market trends ............................. 01 South Australia.......................... 16 National market overview ........... 02 Western Australia ...................... 20 New South Wales ...................... 04 Australian Capital Territory .......... 24 Victoria ....................................... 08 Tasmania.................................... 26 Queensland ................................ 12 Northern Territory ....................... 27 If you’re looking to sell, buy or rent, we can connect you with your local LJ Hooker office today.Please call 1800 621 212 or visit ljhooker.com.au MARKET TRENDS Five trends for 2017 Booms, busts, bubbles, oversupply, undersupply, strong growth, no growth ... the property market has attracted plenty of headlines over the past 12 months. However, in reality markets in 2016 generally tracked like they did in 2015. This is because the fundamentals that drive real estate markets - interest rates, supply, employment and population growth - saw little change over the year. If anything, these metrics moved further in favour of buyers with interest rates being cut twice and the national unemployment rate tightening over the course of 2016. This is set to change in 2017; banks have started lift interest rates, new apartment developments have started to reach completion and global political changes are set to influence our economy. What are the major trends which will shape Australian property market over the coming year? 1. Picking apartment pockets The supply of new apartments into some capital city suburbs will rise this year. So it is important for buyers 4. The sharing economy to choose carefully where they buy. New innovative technologies will continue to shape how 2. Rise of the renter we live. The ability of these technologies and services to A combination of factors will culminate in 2017 to see a make and save home owners money, as well as free up rise in the preference for some to rent a property and put leisure time, will ensure that their popularity continues to their plans to buy a home on hold. rise over the coming year. 3. Love thy neighbour 5. The cost of change The growth of higher density living has seen demand The high cost of selling, buying and moving home has grow from developers for amalgamated sites. continued to grow. This has reached a point where This has created an opportunity for neighbours to team people are reconsidering and/or delaying their next up, amalgamate their properties and offer them for sale property move. Pressure to reform these costs, such as in-one-line. government stamp duty, will continue to rise over 2017. Our new website is here! Your home for real estate advice eBooks, checklists, market reports, research, state guides and much much more... ljhooker.com.au NATIONAL MARKET OVERVIEW Diverse performance predicted for 2017 Darwin At a macro level, housing markets finished the year on a strong footing with capital city dwelling values continuing Houses Units to rise. In the December quarter of 2016, dwelling values Median Price $515,000 $460,000 increased 2.1% across the combined capital cities, Growth –0.2% 5.7% representing a slower rate of growth compared to the 94 this year 80 this year 2.9% growth in the September quarter. Days on Market 84 last year 96 last year The past 12 months have seen the pace of capital gains improve –8.3% this year –8.0% this year Discounting compared with 2015, with capital city dwelling values increasing by –8.8% last year –12.7% last year 10.8% over the year ending December 2016, which is a higher pace of capital gains than the previous year when dwelling values rose by 7.8%. Although home values are continuing to trend higher, the pace of capital gains remains below the cyclical highs recorded over the year ending July 2015, when capital city dwelling values increased by Perth 11.1%. Based on the most recent growth in dwelling values, as well as the addition of new dwellings, CoreLogic estimates the total value of residential dwellings across Australia reached $6.8 trillion at the end of December 2016. Houses Units The trend in capital gain has been diverse across the regions and Median Price $512,000 $405,000 housing types. Dwelling values increased 15.5% in Sydney over the year, which was the strongest rate of annual value growth Growth –4.4% –3.2% amongst the capital cities, while Melbourne came in a close second with 13.7% growth. Hobart and Canberra have shown some 62 this year 65 this year Days on Market acceleration in their rate of growth over the past year with dwelling 52 last year 67 last year values increasing by 11.2% and 9.3% respectively. Values also increased over the year ending December 2016 across Adelaide –7.9% this year –10.2% this year Discounting (4.5%), Brisbane (3.6%) and Darwin (0.9%). With Darwin dwelling –6.8% last year –8.5% last year values demonstrating some moderate growth in the December quarter, the annual rate of growth returned to positive territory for the first time since February 2015. Perth was the only capital city to see a decrease in dwelling values, down 4.3% over the year. The outlook for 2017 is continued diversity in housing market Adelaide performance across the regions and product types. A record number of dwellings were approved for construction last year, particularly across the inner city unit markets of the larger capital cities. Higher supply may contribute to a slower rate of value Houses Units appreciation over the year, however we are also seeing some Median Price $448,000 $356,500 barriers to the market from housing affordability and changes to mortgage rates. While Sydney and Melbourne have stood out for Growth 4.5% 1.1% their high rates of capital gain since mid-2012, some of the smaller capital cities and regional markets are now showing a trend towards 49 this year 49 this year Days on Market accelerating housing market conditions. Regional areas linked to the 44 last year 48 last year mining sector have demonstrated very weak conditions, however higher commodity prices and stabilizing housing demand may see –6.2% this year –6.3% this year these areas show a healthier performance over the coming year. Discounting –5.4% last year –5.9% last year Although mortgage rates have recently shown some subtle upward movements recently, it is likely that interest rates will remain historically low for the foreseeable future, which should keep a floor Note: ‘this year’ = November 2016, ‘last year’ = November 2015 under housing demand during 2017. Median price figures & growth figures are to December 2016 All statistics based on the CoreLogic indices to December 31, 2016 2 Brisbane Houses Units Median Price $520,000 $390,000 Growth 4.0% –0.2% 47 this year 67 this year Days on Market 40 last year 47 last year –5.2% this year –5.3% this year Discounting –5.7% last year –5.5% last year ACT Sydney Houses Units Houses Units Median Price $660,000 $425,000 Median Price $991,000 $722,600 Growth 9.6% 5.1% Growth 16.7% 9.6% 30 this year 48 this year 30 this year 30 this year Days on Market Days on Market 38 last year 60 last year 31 last year 29 last year –4.5% this year –3.8% this year –4.7% this year –4.7% this year Discounting Discounting –3.5% last year –5.6% last year –5.9% last year –4.9% last year Melbourne Hobart Houses Units Median Price $720,000 $507,200 Houses Units Growth 15.1% 1.7% Median Price $375,000 $280,000 29 this year 32 this year Growth 11.7% 6.7% Days on Market 30 last year 37 last year 34 this year 34 this year Days on Market 43 last year 31 last year –4.3% this year –5.0% this year Discounting –5.9% last year –5.6% last year –6.1% this year –5.3% this year Discounting –6.4% last year –4.8% last year 3 NEW SOUTH WALES Sydney leads country for growth Sydney’s dwelling values increased 2.4% over the final quarter of over the 12 months ending December 2015, however growth is 2016 and 15.5% over the year ending December 2016, with its not quite as substantial as the peak seen over the year ending July consistent strong rate of annual growth outperforming the other 2015 (18.4%). House values in Sydney saw the most significant state capitals. The annual rate of capital gain has rebounded performance over the year, with values increasing by 16.7% while compared with last year when dwelling values increased by 11.5% unit values increased by 9.6%.