Australian Property Market Weekly Update: Resilient Growth Amidst Rate Rises

G'day! Rasti Vaibhav here, your guide through the maze of the Australian property market.

This week, ending 17th November 2023, has been a cracker in the real estate world down under.

We've seen some fascinating shifts, from interest rate hikes to soaring property values, and even the evolving landscape of share housing. Buckle up as we delve into these trends and what they mean for you, whether you're buying, selling, or just keen on the market pulse.

Ready to dive in?

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The Resilience of Property Prices Amidst Rising Rates

This week, the Australian property market showed its robust nature, even as interest rates climbed. Industry analysts are confident that this rise won't significantly slow down the pace of property price growth.

Highlight: PEXA's chief economist Julie Toth suggested that while there might be a temporary dip, a swift rebound is just as likely. “We may see a pause in price increases, but a drastic fall isn’t on the cards,” she said. Tim Lawless from CoreLogic concurred, noting that while confidence could be slightly affected, a major price drop seems improbable.

Australian Property Values Reach New Heights

In a remarkable turn of events, the total value of Australian residential properties has escalated to an astounding $10.2 trillion. Despite a small deceleration in the rate of growth, the upward trend continues.

The past months have seen a 2.3% rise in dwelling values, showcasing the unyielding nature of the market.

Additionally, the median days on the market for properties have slightly increased, now standing at 30 days, offering a glimmer of hope for buyers navigating this competitive landscape.

The Rising Popularity of Share Houses

An intriguing trend is emerging in the realm of Australian housing – the rise of share houses. With economic changes, particularly the interest rate hikes, more Australians are seeking shared accommodation.

Highlight:  Flatmates.com.au, a popular platform in this sector, has witnessed an 11.2% increase in its membership over the past month.

“It’s a sign of the times,” said Claudia Conley, Community Manager at Flatmates.com.au. “More property owners are turning into live-in landlords to offset mortgage costs.”

A Tightening Grip on Vacancy Rates

Vacancy rates are another key metric in understanding the property market's health, and they’ve hit a record low of just 0.8%. This crunch in available rentals, particularly pronounced in Adelaide and Perth, underscores the need for more rental properties in the market.

Highlight: Dr. Nicola Powell from Domain stresses the urgency, “There’s a clear need for increased investor activity to replenish the rental stock,” indicating a potential opportunity for those looking to invest.

Shifting Sands in Auction Clearance Rates

The auction scene also saw some changes, with clearance rates dipping to 63.8%, their second-lowest level since Easter. This fluctuation, influenced partly by seasonal events like the Melbourne Cup, is seen as a temporary blip rather than a trend.

Looking ahead, CoreLogic anticipates a resurgence in auction listings, suggesting a lively market in the coming weeks.

Navigating the Australian property market requires a blend of data-driven insights and a keen understanding of the emotional undercurrents driving market changes.

Sign Off: As Rasti Vaibhav, The Architect of Property Wealth, I am here to guide you through these nuances.

If you're contemplating how these trends could influence your property journey, let's have a conversation.

Book a time for a one-on-one chat at https://getrare.com.au/ready,

or join our educational workshops to explore the avenues of property investment at https://getrare.com.au/workshop.

Stay informed, stay ahead.