August Property Market Update

With changing market conditions it is clear that property prices are falling. The figure below shows capital city median dwelling values as of August 2022.

Adelaide and Perth have been impacted the least whilst Sydney and Melbourne lead the fall in property prices in Australia.

Capital City Auction Statistics

Auction activity has risen above the 2,000 mark for the first time in nine weeks, with 2,018 homes auctioned across the combined capitals in the last week of August.

The figure below shows the recent clearance rates compared to last year with a general decreasing trend as well as the total number of auctions compared to last year showing an increasing trend.

Houses vs Unit: Median rents and Rental yield

The August rental market saw units outperforming houses in the area median weekly rents. "Most capitals reported falling or steady house rents over the month, with increases reported for Melbourne, Adelaide and Perth.

Unit rents have increased sharply over the past year in all capitals, with Melbourne outperforming the major cities followed by Sydney. However, this may also be a product of falling property prices.

Recent news: Strong rental market to continue

Overseas searches to rent on realestate.com.au have skyrocketed in recent months, in the last six months compared to the six months prior. With news of border restrictions being eased and the number of Visa spots being increased, investors will receive a boost of confidence, especially in the unit rental market.

The below figure shows "Strong rental demand, a low supply of stock, and the potential for strengthening rental yields is likely to keep investors engaged.