Property Investment

Home values increased by 0.8% in July 2016 with values 2.9% higher over the three months to July 2016

  • Combined capital city home values increased by 0.8% in July with values rising in Sydney, Melbourne, Adelaide and Hobart but falling elsewhere
  • Home values were 2.9% higher over the three months to June 2016 and Brisbane, Perth and Darwin were the only capital cities in which home values fell
  • Over the first seven months of 2016, capital city home values have increased by 6.3% and Perth and Darwin are the only cities in which values have fallen
  • Over the past 12 months, combined capital city home values have increased by 6.1% which represents their slowest rate of annual growth since September 2013
  • Across the individual capital cities, the annual change in home values have been recorded at 9.1% in Sydney, 7.5% in Melbourne, 3.9% in Brisbane, 4.8% in Adelaide, -5.6% in Perth, 6.2% in Hobart, -7.6% in Darwin and 2.9% in Canberra.

Home sales have continued to trend

  • Over the 12 months to July 2016 it is estimated that there were 329,444 houses and 126,840 units sold nationally with house sales - 7.9% lower and unit sales -14.8% lower over the year
  • Across the combined capital cities there were an estimated 199,735 houses and 91,553 units sold over the 12 months to July 2016.
  • House sales are -10.9% lower over the year while unit sales are down -17.5%
  • Most capital cities are seeing the number of sales trending lower however, there are signs in Perth and Hobart, where home values are falling, that sales volumes are stabilising and potentially increasing a little
  • It is important to note, the large volume of off-the-plan sales currently means there is a high likelihood unit sales volumes will be revised higher over the coming years

Economic data remain mixed

  • New lending to both investors and owner occupiers has fallen from recent peaks with investor lending recording a much greater decline
  • Total housing credit is rising however, investment credit growth continues to slow and is now increasing at a rate which is half that of APRAs 10% threshold for annual growth
  • The rate of population growth at a national level is trending lower although it did pick-up slightly over the December 2015 quarter
  • Dwelling approvals fell in June but remain at levels well above recent averages and at near record highs
  • Consumer sentiment eased back in August and sits at a neutral setting
  • The unemployment rate was recorded at 5.8% in June, up slightly from the 5.7% recorded over the previous three months

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Australian Property Guides

Australian Property Guides