According to The Australian Financial Review, new apartment and townhouse starts fell to an 11-year low over the four quarters to March, prompting building and infrastructure groups to list union pay and condition agreements among the rising costs and hurdles holding back the development of much-needed housing.
Dwelling commencements for attached homes dropped 5.5 per cent from the December quarter to 14,253, cutting the total over the year to March to 59,783 – the weakest since September 2012 – new Australian Bureau of Statistics figures showed. https://www.afr.com/property/residential/apartment-starts-fall-to-11-year-low-20240717-p5juf1
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According to The Australian Financial Review, the average new owner-occupier home loan is at $626,055 nationally, hitting a record high nationally, as the growth housing markets of Perth, Brisbane and Adelaide surge higher, according the latest official lending figures.
Owner occupier loans sizes are all-time highs in Queensland ($586,627), South Australia ($541,775) and Western Australia ($538,860), according Australian Bureau of Statistics data on finance commitments for May. The largest average new owner-occupier mortgage remains in NSW at $767,584, which is nevertheless below the peak in that state of $803,235, set in January 2022. In Victoria, where Melbourne’s housing market is weak, the average new loan size fell to $601,891 and is well below the peak of $651,364 two years ago. https://www.afr.com/property/residential/home-loan-size-hits-record-626-055-as-perth-brisbane-power-up-20240708-p5jrw8
According to The Australian Financial Review, new housing approvals in May fell almost a third short of the 20,800 monthly rate effectively needed to reach national cabinet’s 1.2 million new homes a year, even as they picked up at their fastest rate in six months.
Approvals of new homes of all types jumped 5.5 per cent from April to 14,175, making it the highest total since November’s 14,632, Australian Bureau of Statistics numbers showed recently. But while the figures are for May and not part of the 2025 financial year that kicked off this week, they show the gap between what the market is currently producing and what it needs to reach the targeted boost big enough to make a dent in the country’s housing shortage. https://www.afr.com/property/residential/new-home-approvals-rise-to-six-month-high-20240702-p5jqlg
According to The Australian Financial Review, more vendors sold at a profit in the March quarter although the size of their windfall gain shrank amid the seasonal decline in sales, CoreLogic’s latest Pain and Gain report shows.
The proportion of profit-making residential sales ballooned to 94.3 per cent nationwide, the highest level of profitability in 14 years, boosted by the persistent increases in home values, which outweighed weakness in the economy and higher mortgage rates. More than 80,000 vendors raked in a total of $28.5 billion gross profits. However, this was lower than the $30.6 billion recorded in the December quarter. The median profit also fell by 1.1 per cent to $265,000 during the same period. Eliza Owen, CoreLogic’s head of research, said the share of profit-making sales may increase further in the June quarter as values climbed higher. “Profitable sales are likely to rise in what’s already a highly profitable market,” she said. https://www.afr.com/property/residential/property-profits-hit-14-year-high-20240624-p5jocg
According to The Australian Financial Review, more than 3000 property investors bailed out of Melbourne in May, a 34 per cent jump from a year ago, as the state government’s tax changes and lacklustre investment returns accelerated the exodus, data from Suburbtrends show.
Nearly 4000 ex-rental properties across Victoria were listed for sale, further depleting the state of the already scarce rental supply, said Kent Lardner, founder of Suburbtrends. Investors also exited in larger numbers across NSW, offloading 3593 rental properties in May, up by 20 per cent over a year ago. In Sydney, a total of 2372 investor-owned properties were listed for sale, a 17 per cent jump from a year ago. https://www.afr.com/property/residential/investor-exodus-gathers-pace-in-melbourne-and-sydney-20240618-p5jmnj
According to The Australian Financial Review, Perth’s house vendors jacked up their asking prices to more than $1 million on average last week, marking a fresh high for the city and the first time sale price expectations exceeded the million-dollar milestone, data from SQM Research shows.
Sale price hopes also surged to record highs in Brisbane, Adelaide, Melbourne and Canberra as sellers became more bullish as home values rose nationwide. Brisbane house sellers are now expecting to get $1.1 million on average. Melbourne vendors are asking $1.26 million, Adelaide $918,612 and Canberra $1.23 million. https://www.afr.com/property/residential/vendors-jack-up-asking-prices-as-home-values-hit-new-peaks-20240612-p5jl2d
According to The Australian Financial Review, higher selling prices – of apartments targeting downsizing home owners – have boosted the construction of new units, putting the country on track to record its highest number of completions this year since 2020, new figures from consultancy Urbis show.
A 26 per cent national increase in apartment selling prices that has made new development projects viable will lift new home completions this calendar year to 28,000, the most in four years when the total was 32,000, the Urbis Apartment Essentials Q1 2024 report says. https://www.afr.com/property/residential/apartment-sales-boom-in-the-1-million-plus-price-range-20240605-p5jjdv
According to The Australian Financial Review, Perth’s house prices are on track to increase by 21 per cent over the next two years, National Australia Bank says in its latest forecast, lifting its earlier prediction by almost 4 percentage points this year alone as values accelerate.
The bank is now expecting Perth’s home values to jump by 13.7 per cent this year and gain another 6.2 per cent by the end of 2025. Brisbane and Adelaide are also poised to rack up stronger growth in the next two years, with house prices predicted to increase by a total of 12.2 per cent and 12.3 per cent respectively. Sydney house prices are expected to increase by 4.5 per cent this year and gain a further 3.7 per cent next year for a total of 8.4 per cent by the end of 2025. This is slightly lower than the bank’s earlier forecast of 8.6 per cent in total. Melbourne is forecast to rise by 2.5 per cent this year and another 3.7 per cent next for a total of 6.3 per cent over the next two years, which is also a tad lower than the 6.4 per cent the bank predicted earlier. Across the combined capital cities, NAB is expecting prices to rise by 5.5 per cent this year and add another 3.7 per cent next year for a total increase of 9.4 per cent, which is higher than its earlier forecast of 8.7 per cent. https://www.afr.com/property/residential/perth-s-house-prices-to-jump-21pc-by-2025-nab-20240530-p5jhy5
According to The Australian Financial Review, housing development approval waiting times have blown out to four months in Victoria and NSW, exacerbating a housing supply crisis that is driving up rents and house prices.
State and local council agencies in Victoria and NSW are the slowest in the country, with average development approval waiting times at 144 and 114 days respectively, federal Treasury said in a new analysis of the housing market. The numbers show that development and planning approvals are getting worse, despite political promises to act on housing supply. https://www.afr.com/property/residential/the-reason-australia-is-falling-behind-the-world-in-building-houses-20240524-p5jg99
According to The Australian Financial Review, the federal budget did little to ensure Australia could reach its target of building 1.2 million new homes over the next five years because it failed to meaningfully boost the number of workers available to build them, the property industry and community groups say.
While budget included $89 million to boost the number of training positions, it only included $1.8 million to fast-track the assessment of 1900 migrants with necessary construction skills, when the industry needed an estimated 486,000 new people by 2026. https://www.afr.com/property/residential/imported-tradies-need-to-live-somewhere-too-20240513-p5jd80 |
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