Monthly Housing & Economic Chart Pack, July 2018

This month’s chart pack has been written by the CoreLogic Research Team. Also included below is a detailed overview on the key findings covered in this month’s report.

Download the full chart pack here.

 


Monthly highlights

  • National dwelling values fell for the 9th consecutive month in June 2018, down -0.2%.  Over the month, combined capital city values fell by  -0.3% while the combined regional markets recorded no change in values.
  • Values rose over the month in Brisbane, Adelaide and Hobart while they fell elsewhere.
  • Over the three months to June 2018, dwelling values nationally were -0.5% lower with the combined capital cities recording a fall of -0.8% while the combined regional markets recorded an increase of 0.6%.
  • Values rose over the past three months in all capital cities other than Sydney, Melbourne , Perth and Darwin.
  • Over the 2017-18 financial year, national dwelling values fell by -0.8% which was well down on the 10.2% increase over the previous financial year
  • The combined regional markets have recorded growth in values over the past year (2.2%) while the combined capital cities have recorded a decline of (-1.6%).
  • Despite the slowing conditions all capital cities except for Sydney, Perth and Darwin have recorded value rises over the year however, Perth is the only capital city in which the financial year change in values was stronger this year compared to last,.
  • Transaction volumes are much lower over the year down -8.8% nationally with Adelaide the only capital city in which sales volumes were higher over the year.
  • Rental rates were unchanged in June 2018 but increased by 0.3% over the second quarter of the year and were 1.8% higher over the past 12 months.  The 1.8% annual growth in rents is the slowest rental growth since March 2017.
  • Rental rates rose over the year across all capital cities except for Perth and Darwin however, Hobart was the only city in which rents rose in excess of 4.5%.
  • Rental yields have started to lift from their record lows as rental growth outpaces value growth, yields are currently recorded at 3.70% up from 3.64% in June 2017.
  • The length of time it takes to sell a property has increased relative to a year ago in all capital cities except for Melbourne (where it is unchanged), Hobart and Darwin where properties are selling quicker.
  • The volume of new and total stock advertised for sale nationally is lower than a year ago.  Across the cities, total listings are much higher than they were a year ago Sydney and Melbourne, while they are lower elsewhere.
  • Population growth remains strong however, an increasing number of residents are leaving NSW with interstate migration to Qld accelerating.
  • Dwelling approvals fell by -3.8% in May 2018, with the number of houses approved for construction falling while unit approvals rose.
  • In terms of housing finance, investor demand is waning with owner occupiers now the dominant source of demand.  In NSW and Vic, recent removals of stamp duty for first time buyers has resulted in a surge in demand from this sector.
  • The expansion of housing credit slowed over the month of May with credit to investors expanding at its slowest annual pace on record.
  • Official interest rates remain at 1.5% with the market currently not expecting a 25 basis point increase in official interest rates until 2020.

 

 

 

 

Detailed housing and mortgage market statistics
CoreLogic produces an advanced suite of housing market analytics that provides key insights for understanding housing market conditions at a granular level. Granular data is often used for portfolio analysis and benchmarking, risk assessments and understanding development feasibility and market sizing. It gives industry professionals valuable modules which provide essential analytics and insights for decision making and strategy information within the residential property asset class. CoreLogic can tailor reports to suit your business requirements. For more information contact your CoreLogic account manager or email research@corelogic.com.au.