March 2017 Property Market News

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March 2017

March saw continued price rises in Sydney and Melbourne. Media coverage focussed on how to slow property markets. Discussions continued on how property can be made more affordable for First Home Buyers.

National

National news looking at topical points relating to Australia as a nation.

Property Market

‘The value of Australia’s 9.8 million residential dwellings grew by $274.2 billion to $6.4 trillion’
ABS

Property Cycles

For houses Sydney, Hobart and Adelaide are in ‘rising markets’. Brisbane, Darwin and Perth are ‘approaching the bottom / start of recovery’ with Melbourne ‘approaching the peak of the market’ and Canberra in a ‘declining market’
Herron Todd White

For units Sydney and Hobart are in ‘rising markets’. Brisbane, Darwin and Perth are in ‘declining markets’. Adelaide and Canberra are the ‘the bottom of the market’. Melbourne is at the ‘peak of the market’.

‘Mr Christopher (SQM) and Mr Kushner (Corelogic) believes a risk weighting system for every postcode should be implemented to curb oversupply occuring in certain areas’
Australian Financial Review

Prices

Year on year growth Sydney 18.41%, Melbourne 13.11%, Canberra 10.35%, Hobart 5.83%, Adelaide 3.50%, Brisbane 2.24%, Perth -4.46%, Darwin -5.32%
Corelogic

Change in dwelling values 2008-2017 Sydney 106.2%, Melbourne 88.8%, Canberra 37.7%, Adelaide 17.3%, Brisbane 16.1%, Darwin 14.9%, Hobart 11.6%, Perth 6%
Corelogic

Vacancy Rates

Vacancy rates Hobart 0.7%, Canberra 0.9%, Melbourne 1.7%, Sydney 1.9%, National 2.4%, Adelaide 2%, Brisbane 3.3%, Darwin 3.8%, Perth 4.8%
SQM Research

Clearance Rates

‘Weighted average clearance rates across the capital cities for the month have been above 70%’
Corelogic

Economy

‘The US Reserve raised the cash rate’
Australian Financial Review

‘We forecast demand for Aussie housing will continue to grow. It will be supported by Chinese wealth creation, attractive valuations’
AFR

‘There is plenty of value in Aussie property for Chinese investors. The median price for a 2 bedroom in Shanghai is $900,000 which is 25 per cent more than the median apartment price in Sydney’
Credit Suisse

‘Unemployment rate remained steady at 5.8%’
ABS

‘Borrowers must have a 10 per cent deposit instead of five per cent’
news.com.au

First Home Buyers

‘The government is thinking about letting First Home Buyers use their superannuation towards their first property’
Australian Financial Review

‘Purchasing off the plan has been a strategy adopted by many first home buyers in the Sydney market, typically with a two to three year settlement time frame’
Herron Todd White

Demographics

‘Australia is experiencing its fastest growth in net overseas migration in four years with 193,200 new residents during 2016’
ABS

‘Victoria is leading population growth with 127,500 new residents over 2016 followed by NSW 109,600, Queensland 67,700, Western Australia 25,200 and South Australia 9,400’
ABS

Local

Capital City related news relating to the property market.

Building Approvals

Sydney Building Approvals Financial Year to Date Parramatta 3,086, The Hills Shire 2,964, Sydney 2,900, Blacktown 2,618, Liverpool 1,963, Canterbury 1,693, Camden 1,531, Sutherland Shire 1,490, Penrith 1,333, Ryde 1,333, Lane Cove 900, Central Coast 875, Northern Beaches 793, Newcastle 616, Inner West 415, Ku-ring-gai 409, Woollahra 202, Mosman 25
ABS

Melbourne Building Approvals Financial Year to Date Melbourne 5,340 Casey 2,670, Wyndham 2,623, Hume 2,071, Whittlesea 1,499, Greater Geelong 1,489, Moonee Valley 1,295, Melton 1,283, Moreland 1,295, Whitehorse 1,198, Glen Eira 1,127, Frankston 451
ABS

Brisbane Building Approvals Financial Year to Date Brisbane 6,733, Gold Coast 4,051, Sunshine Coast 2,548, Moreton Bay 2,406, Ipswich 2,110, Logan 1,514, Toowoomba 692, Redland 660, Townsville 458
ABS

Property Market

‘Sydney experienced particular strength in all segments of established houses, particularly in the middle brackets of $1,350,000-$1,690,000′ and was particularly strong in the middle to upper segments of attached dwellings $840,000-$1,000,000’
ABS

‘Melbourne established houses experienced particular strength in the mid to lower $550,000-$650,000 and mid to upper $650,000-$1,000,000 segments of the mark. Attached dwellings was mixed across segments with rises in the mid to upper segments $550,000-$730,000’
ABS