June 2017 Property Market News

June 2017

June has started off with a huge amount of good news for first home buyers. Vacancy rates remain below 2% in Canberra, Hobart, Sydney, Adelaide and Melbourne.

First Home Buyers

The ‘housing affordability package’ has been released.

Stamp Duty for first home buyers on existing and new homes has been scraped for NSW buyers up to $650,000 from 1 July 2017. There will also be stamp duty discounts for homes up to $800,000. This will save first home buyers up to $24,740.

Stamp Duty on lenders mortgage insurance has also been abolished, which will save around $2,900 on a $800,000 property.

According to recent Corelogic research the biggest hurdle stopping Millenials from buying a property are:
Deposit (49%)
Interest rates (44%)
Employment Uncertainty and Getting a loan approval (41% each)

With changes to the grants first home buyer activity is set to surge after July 1 2017. According to data from Corelogic over 25% of dwellings are sold below $650,000 in the Sydney Metropolitan area. Dwellings priced between $650,000-$800,000 made up 41% of all dwellings sold in the Sydney Metropolitan area. 51% of units and 34% of houses were priced under $800,000. This means there are still plenty of opportunities for buyers around the Sydney Metropolitan area.

Vacancy Rates

Sydney – 1.8%
Melbourne – 1.6%
Brisbane – 3.3%
Darwin – 3.4%
Adelaide – 1.9%
Hobart – 0.6%
Canberra – 1%
Perth – 4.9%

Infrastructure

According to Cordells monthly update, Brisbane saw the biggest number of new development commencements in QLD at 13 over the month of May. The largest number of developments in Victoria took place in Wyndham at 21 of which 12 were new residential subdivisions.

Price Growth

Residex 10 year per annum price growth table (until May 2017):

Houses
Sydney – 8.3%
Melbourne – 8.1%
Brisbane – 3.4%
Darwin – 2.7%
Adelaide – 3.7%
Hobart – 3.4%
Canberra – 4.2%
Perth – 0.5%

Units
Sydney – 7.3%
Melbourne – 5.5%
Brisbane – 2.1%
Darwin – 1.3%
Adelaide – 3.0%
Hobart – 2.5%
Canberra – 2.6%
Perth – 0.4%

According to these figures if you had purchased a $500,000 house in Sydney in 2007 versus a house for the same price in Perth, you would have made over $400,000 more in Sydney.