Weekly Property News 45th Edition 2021

Has the “Gold Rush” in property prices come to an end?

Hi Guys, it’s Dean OBrien from OBrien Real Estate with the 45th edition of the Property News for 2021 where real estate information is on the house.

Interestingly the Victorian auction market experienced a 10% drop in clearance rates with many unreported auction results not being included in the state’s declared 74% clearance rate. It’s been some time we had a clearance this low. Is it a just a bump in the road due to the higher than normal stock levels or is it a sign we have seen the end of the Gold Rush in real estate terms?

Corelogic released its November home price index this week and national home prices increased 1.3% in November, the 14th consecutive month. Although values are continuing to rise the November result was the softest since January where values rose 0.9%. Regional Victoria is still leading the way with its growth with an overall increase of 1.8% taking the annual growth to 24%. Melbourne rose half that of the national average increasing 0.6%. Darwin and Perth were the worst performing capital cities for growth returning a negative 0.4% and just 0.2% respectively

Looking at the next slide on Rental performance you’ll see that rental market for Melbourne’s property investors has held reasonably firm with the monthly change in rent holdings between 0.6% and 0.7%. Rents in Melbourne over the last 12 months have increased by 4.7% for houses and units at an increase of 1.7%, but let’s bear in mind in July 2020 rents for units in Melbourne were down by 16%.

The main edits this week has been:

  • The ABS September quarterly data reveals company’s gross operating profits was again boosted by Government Stimulus with a 4.0% increase
  • Annual population data was released for the 2021 financial year and surprising for some, Melbourne had the largest population growth with 80,100 of all capital cities with Regional Australia growing by 86,200 and Regional Victoria by 19,700. Overall, across all capital cities there was a negative internal migration of 30,200.
  • And lastly total dwellings approved with Building Approvals fell 12.9% in October.

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That’s all for this week, I’m Dean OBrien, and 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.