Australia's Property Landscape:

A Week in Review

Published: 10th November 2023

Strap in, mates! We're on a wild ride through the Aussie property market this week.

From the Reserve Bank's latest rate rise to whispers of a rental revolution, we've seen it all. This isn't just about bricks and mortar; it's the pulse of our nation's dreams and the blueprint of our financial future.

So, grab your flat white, and let's decode the signals together.

Whether you're a savvy investor or looking to snag your slice of the great Australian dream, this update is your first step to staying ahead in the property game.

The RBA's Latest Chess Move – Rate Hike

The Reserve Bank of Australia (RBA) made headlines with a bold new increase in the cash rate by 25 basis points, reaching a staggering 4.35%. This leap to the highest point in over a decade marks the 13th rise since May last year.

The RBA's new leader, Michelle Bullock, stands firm at the helm, ready to raise the anchor on rates even higher if inflation continues its bullish run.

The Surge in Apartment Rents – What It Means for You

Sydney's Eastern Suburbs
Parramatta
Melbourne North
Perth City
Brisbane

These are the hotspots where apartment rents are set to skyrocket. A report by CBRE anticipates a $120 per week increase by 2028. This isn't just about higher living costs; it's a significant opportunity for investors.

The demand for rental properties in these precincts is not just growing; it's thriving.

Graph illustrating RBA's increasing cash rates in Australia for Property Market Update.

A Slowdown in Building Approvals – Understanding the Impact

In an unexpected twist, new house building approvals have taken a dive, hitting their lowest in a decade. A 4% drop this September alone!

HIA's Senior Economist, Tom Devitt, paints a picture of the challenge ahead. He links this to the rapid rate increases and hints at a more profound impact yet to unfurl.

Reaching the government’s goal of 1.2 million new homes in five years now seems like a lofty dream.

The Housing Crunch – Will It Squeeze You Out?

The RMIT has forecasted that the housing squeeze is set to continue into 2025.

Dr. Peng Yew Wong from RMIT suggests that we brace for a market unlike any since the 2008 Global Financial Crisis.

House prices are expected to reach record highs, putting additional pressure on Australians dreaming of owning their first home.

High-rise apartments in Sydney's Eastern Suburbs with potential for rent increases.

The Reverse Mortgage Wave Among Retirees

Retirement should be golden, and it seems many are finding solace in their home equity.

The government's Home Equity Access Scheme has witnessed a 60% jump in participation, with a $240 million drawdown in just the past year. It's about security and comfort in retirement – a life well-earned.

The Squeeze in Student Housing – A Niche Market Opportunity

The student housing market is under immense pressure, with rents climbing by 27% since 2020 and a shortage of 9,000 beds projected by 2028.

Oxford Economics Australia highlights a tight situation, but also hints at unique investment opportunities in this niche.

Silhouette of construction cranes highlighting the downturn in building approvals.

Inflation, Interest Rates, and Your Property Dreams

The tapestry of the property market is complex. We've seen:

Interest rates climb
Rent prices soar
Building approvals dwindle

Yet, the human element – the Australian dream of home ownership, the retiree's quest for a comfortable life, the student's search for a home away from home – remains central to the narrative.

Retiree couple considering reverse mortgage options for a secure retirement.

Rasti Vaibhav's Final Blueprint on the Property Market

Navigating through the property market's twists and turns can be daunting. It's more than just data; it's about the dreams and aspirations tied to every brick and mortar. As The Architect of Property Wealth, I'm here to help you decipher these patterns and carve out a strategy for success.

If you're pondering how property investment fits into your personal story, let's talk. Book a time with me at https://getrare.com.au/ready to discuss your unique situation.

Or, if you're eager to learn more, join one of our educational workshops at https://getrare.com.au/workshop.

Together, we'll navigate this market and help you build not just wealth, but a future you can look forward to.