The real estate market in Australia and New Zealand has been dynamic recently, with notable shifts in property values and rental trends. According to the CoreLogic Home Value Index, Sydney is recovering, and Brisbane has overtaken Canberra as the second most expensive capital city, highlighting significant changes in property price rankings.
Australia’s Real Estate Landscape
- Stock Levels: Extremely low levels of available stock are driving strong market performance, particularly in Perth and Adelaide, where listings are more than 40% below the five-year average. Brisbane’s listings are 34% below average.
- Capital City Highlights: Brisbane’s median dwelling value has surpassed Canberra’s, partly due to Melbourne’s lower median values, influenced by a concentration of cheaper units. Sydney’s market shows recovery with upper quartile home values displaying the lowest growth rates over the past year.
Rental Market Trends:
The Australian housing market remains resilient despite high interest rates and inflation. The primary driver is the imbalance between housing supply and demand. Housing supply is significantly below average, while buyer activity remains strong, with home sales 7.2% above the five-year average.
New Zealand’s Real Estate Scene
National Price Trends:
New Zealand’s property market shows a contrasting picture. The average property value dipped by 0.2% in May, with Auckland leading this slowdown with a 0.8% decline. Christchurch saw a 0.5% rise, and both Hamilton and Dunedin experienced 0.8% gains.
Market Adjustments:
New Zealand is adjusting from an unprecedented growth period, with property values 11% below their post-COVID peak. The market previously saw spikes as high as 39-49%, leading to a significant downturn lasting over a year.
The ongoing mismatch between housing supply and demand continues to drive market dynamics. While Australia experiences sustained growth, New Zealand is in a correction phase. Real estate professionals should remain cautious, anticipating further pressure on housing values and potential affordability challenges.
With only two weeks left in this financial year, I want you to do two things for me:
- Book a Holiday: The past 12 months have been challenging, and if you had the right systems and strategies in place, you’ve likely been very busy. Now is the time to book your next holiday and get some well-deserved rest!
- Revisit Your Goals: I constantly revisit my goals and hope you are doing the same at least every six months. Take this time to review what you’ve achieved in the past six months and rewrite your goals for the start of the 2024/25 financial year.
Cheers
Ryan
