A surge in overseas migrants and international students coupled with a significant shortfall in rental listings has led to the strongest annual rental increase on record for Australia’s capital cities. Since the onset of COVID, capital city rents have risen 25.7% and regional rental values have increased 29.2%. More than 40% of Australian house and unit markets have recorded a double-digit rent increase in the past year. It's now cheaper to buy than rent in many areas. The cocktail of low supply, strong demand from migration and the tight rental market is fueling a faster-than-expected turnaround in the market. The number of new properties listed for sale is almost 25% lower than the previous five year average. These currently lean stock levels are helping to drive clearance rates and property prices higher. OOM. Will the increase in house prices continue for the rest of the year? We expect home prices to continue to lift in the months ahead, buoyed by population growth, rental market tightness, and an undersupply of new homes, with a return to positive annual price growth expected across most capital city markets in the coming months. Experts warn should property prices continue to grow as it has been in recent months, Aussies can expect to be seeing a new peak in the market by next year. The latest PropTrack Market Insight Report has found if property prices continue to grow at the same pace as it has been over the past quarter, then the new peak could be within the next six months. Andrew Macdonald Principal, Ray White Macdonald Partners - Point Clare NEW LISTINGS CONTINUE TO FALL FROM 2022 HIGHS New listings – Year on year difference (%) – 3 month 5.0% 0.0 -5.0 -10.0 -15.0 -20.0 Jun 2022 Jul Aug Sept Oct Nov Dec Jan 2023 Feb Mar Apr May 2023 Includes all listings across a range of portals including Domain, realestate.com.au, Homely and Zargo Source: Neoval New Listings
RkJQdWJsaXNoZXIy MTI3ODI1