Rachel Anderson (pictured above), director at Herron Todd White (HTW), highlighted the enduring strength of Australia’s residential property market in the Month in Review report for June.
Despite facing high inflation and economic uncertainties, the property market remains robust, with a consistent pattern of growth.
“A lazy $750,000 in the national residential property market has to work hard across the nation as markets remain robust, proving property ownership aspirations to be resilient and rewarding,” Anderson said.
The HTW report detailed a slowdown in price growth and an increase in sales listings, aligning with expectations of ongoing population growth and tight rental markets. Anderson pointed out the variances in regional performance.
“In May, the national home price growth was 0.30% (6.68% annual) with the median being $784,000,” she said. “Combined capital cities growth was 0.41% (7.22% annual) with a median of $851,000 and combined regional areas recorded no growth (5.3% annual growth) and an eye-watering median of $642,000.”
“Perth remains the strongest performing capital city, with an astonishing 22nd consecutive month of growth and an annual rate of 20.68% with low stock levels and still the most affordable state,” Anderson said.
In contrast, Sydney and Melbourne show differing trends, with Sydney experiencing a 7% increase from the previous year, while Melbourne’s growth remains static.
The HTW report also touched on the lending landscape, revealing a rise in new loan commitments for housing, particularly among investors and first-time homebuyers.
“Lending indicators for April 2024 show new loan commitments rose 4.8% for housing, being 24.6% higher compared to last year with investor housing 36.1% higher than last year and owner-occupier housing finance rising 18.7% compared to a year ago,” Anderson said.
Despite various pressures such as cost of living and affordability issues, the resilience of the property market underscores its dominance in the national economic landscape.
“In summary, despite the unrelenting cost of living pressures, systemic and structural supply issues, housing affordability degradation and unsustainable wage growth, across the nation property still rules supreme,” Anderson said.
This reflects a market that, while facing challenges, continues to offer significant opportunities and rewards for those navigating its complexities.
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