The Property Investment Professionals of Australia (PIPA) released its National Market Update for July, revealing continued robust market conditions in most major Australian cities, except for Melbourne.
The report consolidated insights from market experts and PIPA members, offering a comprehensive overview of current trends.
According to PIPA chair Nicola McDougall (pictured above), double-digit dwelling price growth was recorded in Perth, Brisbane, and Adelaide over the past year, while signs of resurgence emerged in Sydney and New South Wales.
“Melbourne continues to be the talk of the property town – but not in a good way,” McDougall said.
The median dwelling value in Melbourne increased by just 1.6% over the past year, with a 0.6% reduction in the most recent quarter.
McDougall attributed this to “anti-investor rental reforms” and a new land tax regime.
Despite the negative sentiment, she noted, “It is highly unlikely that our most populous city does not continue to offer sound property investment potential.”
Rental markets nationwide remain severely undersupplied, with vacancy rates around one percent for over two years.
McDougall slammed restrictive rental policies.
“One really has to wonder if state governments understand how their unnecessarily restrictive policy decisions are worsening the rental crisis,” she said.
Terry Ryder, director of Hotspotting, highlighted a resurgence in parts of Sydney and Regional New South Wales, with Surry Hills emerging as the top supercharged suburb.
“Surry Hills is a market dominated by apartments, where demand has been rising in keeping with an emerging national phenomenon,” Ryder said.
Antony Bucello, director of National Property Buyers, highlighted Melbourne’s resilience.
“The market has demonstrated incredible resilience in a challenging real estate landscape and is now poised for an upswing,” Bucello said.
Despite challenges, Bucello pointed out the strong fundamentals and high demand in Melbourne’s rental market.
Michael Pell, managing director of Propell Property, reported robust market conditions in Queensland, with strong first-home buyer activity and significant investor interest.
“There is urgency for people to secure properties because the prices are going up,” Pell said.
Jess Elam, buyer advocate at Elam Property, reported that Adelaide set a new median home price record with a 14.61% increase over the past year. Elam attributed this growth to Adelaide’s affordability and low stock levels.
Sam Spilsbury, director of Buyers Agents Tasmania, noted varied movements in Tasmania’s housing market, with a slight decline in house prices but a surge in sales. Spilsbury stressed the resilience and adaptability of Tasmania’s property market amidst broader economic conditions.
Claire Corby, buyers’ agent at Capital Buyers Agency, reported gentle quarterly price rises in Canberra due to a shortage of quality homes and consistent buyer demand.
Corby highlighted the ongoing legislative challenges for landlords in the ACT.
Kevin Hoang, senior economist at inSynergy Advisory, described Perth as one of the best-performing markets, with a 22% price increase over the past year and a historic low vacancy rate.
Hoang emphasised Perth’s affordability and strong economy as key drivers of its market strength.
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