Monthly Property News 6th Edition 2024.
“A New Financial Year Beckons”
Hi everyone, I’m Jason Mudford from OBrien Corporate with the sixth edition of the monthly property news for 2024.
There were 3139 auctions in Melbourne over May with 76.75% of them selling, still a great result even though it is slightly down from April’s 78.75%. However, when considering in May Melbourne’s listings were up 34.8% it’s a better result and coupled with the fact that CoreLogic reported May’s Median Home Prices were up by 0.1%, when April was down, those sellers have been rewarded for selling closer towards winter.
With the combination of the upswing in listings and stagnation of property prices for the last 4 years it makes it a great time to be trading up and selling one to buy a bigger or a better one. I feel sophisticated homes buyers are sensing it is a great time to be buying and likewise selling their existing before the market takes off into a new direction and they miss this opportune time.
Many Aussies would have heard the media commentary on the latest Inflation numbers that the Australian Bureau of Statistics released for the month of April. The monthly inflation number measures about two thirds of the items in the quarterly CPI basket. It’s a timely gauge but not a completely accurate one. The items that had the most influence over CPI was Housing at 4.9% with rent inflation being the main contributor, then it was Tobacco at 6.5% Transport at 4.2% with food and beverage at 3.8%. The US updated its inflation numbers last Saturday and Morgan Stanley reported that inflation is once again fading and are predicting the Fed to start cutting by September this year.
The Australian Federal Budget was handed down in May and the energy subsidies of $300 per household are expected to reduce inflationary pressure. The Albanese government has been under pressure from Australians to reduce immigration and student visas to assist with rent inflation. Unemployment remains steady at 4.0% and National Building Approvals for all dwellings fell 0.3% after a 2.7% rise the previous month, Victoria had an increase of 2% and WA a 3.5% rise.
Investors seem to be the main vendor selling group within Victoria that is causing the unusually higher activity volumes. If you’re a property investor it may pay to hold until the new financial year to get a sales contract on your property, remember it is the contract date and not the settlement that is used for the disposal date of your asset when calculating capital gains tax. The main reasons behind selling post 1 July are any capital gains won’t be payable until after your lodgement is assessed from 31 October 2025 and secondly if you’re planning to off-set you’re capital gains into superannuation by using your concessional contribution 5 year cap these contributions need to be paid into super within the same financial year, so having the proceeds of the sales may be necessary to make such a contribution.
That’s all for this month. Remember, the information provided is of a general nature; you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.
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