Australian Property Landscape: How Auctions and Rentals Are Shaping Up
With an increase in major capital’s price appreciation owing to the recent interest rate cut, the property market in Australia appears to be robust. Though there are still differences on a regional level, the outlook for the property market is improving.
Lower Interest Rates Bring economic optimism.
Benchmark interest rates have not been altered by the Reserve Bank of Australia (RBA) for the past five years, but the recent 0.25% cut has rejuvenated confidence within the mortgage industry. Particularly in the high-end suburbs of Melbourne and Sydney, buyer sentiment seems to be shifting.
Property Price Movements
CoreLogic also shared some of the additional highlights with us last week:
– Sydney: Property prices increased 0.1% over the past week and 0.5% over the month. Year-on-year, the prices are up by 0.1%.
– Melbourne: Prices held steady last week, but we anticipate a 0.4% monthly increase. In a year they are expected to decline by 3.2%.
– Brisbane: Weekly increases in prices are standing at an anticipated 0.1% per week and a total 0.2% increase monthly, representing a 9.1% increase year-on-year.
This decline follows a drop to 1,572 auctions the week before due to long weekends and natural disasters. The combined capitals’ preliminary auction clearance rate was marginally lower at 69.1%, which is still lower than the previous week’s rate of 69.6%.
Sydney led the way in the auction market with a clearance rate of 71.4%, followed by Melbourne with a 70.3% clearance rate. Brisbane came in at a 59.0% clearance rate, which is their highest so far this year.
Update on the Rental Market
Performance across rent markets was slightly mixed. The national rental price saw an increase of 0.1% in February, the highest increase since May 2024.
– Sydney: Combined weekly rents recorded a decline of 0.1%, and unit rents increased by 2%.
– Melbourne: Total rents rose by 1.0% over the month, with units experiencing a larger increase of 1.7%.
– Brisbane: House and unit rents both saw an increase of 1.0%.
– Perth: The annual rental growth remains strong for Perth at 8.6%, buoyed by a 7.1% increase in house rents and an 11.2% increase in unit rents.
Sellers’ market confidence is very low even with indicators suggesting a positive trend.
The total number of new listings was 41,416 for the last four weeks, which is a 2.9% decline compared to last year and 3.1% down from the five-year average.
The total listing count was 143,081, which is an increase of 2.0% from last year but still 10.5% below the average.
The most recent rate cut is likely to further encourage property price stabilization, which is expected to coax uncertain buyers into the property market. Although there are still challenges with inventory shortages, growing competition may result in moderate price increases in the coming months.
Industry experts forecast that properties located in prime suburban regions, specifically in Sydney and Melbourne, will recover the fastest in terms of pricing. Unfortunately, the situation means that first-time buyers will still have to wait, as they will likely rely on rental prices.
All in all, the market seems to be moving toward a more optimistic sentiment. Like all buyers and sellers, mortgage holders and unencumbered buyers will closely monitor further updates regarding interest rates and policies released by the government in the coming months.Invest smartly and easily with Vasttu by getting free property appraisal services whether you are looking to buy or sell. You can contact us at 0402 427 455 or book a free consultation today to learn how to control your finances.
