October Property Market Update

October Property Market Update

House values have continued to fall at a faster rate than unit values across most regions

The geographic scope of Australia's housing downturn broadened through October with every capital city and rest-of-state region (apart from regional South Australia) recording a drop in housing values last month.

Across the rest-of-state regions, monthly falls of more than -1% were recorded in Regional NSW (-1.7%), Regional Victoria (-1.4%) and Regional Queensland (-1.3%).



Auction Clearances hit six-month high as sellers accept reality

A five-month high was hit this week for national auction clearance rates, showcasing sellers coming to the terms with the property downturn and rising interest rates. At 69.7%, Sydney records it strongest preliminary clearance rate since mid-April. Homes sold on average for just 1.6% over the reserve price. With 63.7% of the 1,468 results collected so far returning a successful result, the combined capitals recorded the strongest preliminary clearance rate since late May (63.7%).


Rental market continues to tighten to record levels

Nationally rents rose another 0.6% in October led by a 1.1% rise in unit rents while house rents increased by 0.5%. The trend towards higher rental growth across the unit sector is evident across most of the capital cities and rest-of-state markets.

Melbourne and Sydney are also recording the highest annual rental appreciation for units, with rents up 13.7% and 13.4% respectively over the past 12 months.

Recent news: 2022-23 Federal Budget, the Housing Accord and implications for the residential sector

The October 2022 Federal Budget focuses on providing support for those with children, homebuyers and social security recipients, whilst maintaining pre-election commitments.

Key proposals include:

  1. Reduce eligibility age for downsizer contributions from 60 to 55
  2. New Housing Accord to build 1 million new homes over 5 years
  3. Help to Buy scheme for 10, 000 first home buyers
  4. Establishment of a National Housing Supple and Affordability Council
  5. $350m Federal Funding to incentivise institutional investment to deliver an extra 10, 000 homes
  6. Changes to Child Care Subsidy and Parental Leave Pay
  7. More favourable Centrelink assessment of home sale proceeds

Note: These changes are proposals only and may or may not be made law.

Source: Insignia Finaicial

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