Monthly Housing & Economic Chart Pack, February 2021

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.

Monthly highlights

  • Australian housing values rose 2.8% in the 3 months to January, with every capital city and rest of state region increasing in value
  • Regional areas of Australia have seen housing values rise 7.9% annually, which is more than four times the pace of capital city values over the past twelve months.
  • Darwin had the highest annual increase in dwelling values of the capital city markets, at 11.4%. Regional Tasmanian dwelling values saw the highest annual increase of the combined regional markets, at 12.1%.
  • Darwin dwelling values have increased 10.8% since March 2020, when stage 2 restrictions were announced in response to COVID-19. However, values in Darwin are still -24.0% below the record high in May 2014. 
  • Sales volumes increased an estimated 10.3% nationally in the year to January, rising in every region but Melbourne, Hobart and regional Tasmania.
  • Rental markets are tightening around most areas of the country, bringing the national increase in rental rates to 2.5% in the year to January. 
  • Rental market conditions remain highly varied. Of the capital cities, the highest annual increase in dwelling rents was in Darwin, increasing 11.4%. The lowest change in rent values was across Melbourne, falling -2.9% over the year.
  • Nationally, gross rental yields fell 2 basis points over the month to 3.69% in January, as property value increases outpaced rental increases over the month.
  • The market is looking increasingly favourable for sellers. Nationally, typical time to sell a property has fallen by 1 week compared to a year ago. The typical vendor discount also tightened 30 basis points nationally compared to a year ago.
  • The amount of property available for sale remains very low. In the 28 days to January 31st, there were 131,657 properties listed nationally, which is -28.3% below the 5 year average for this time of year.
  • Melbourne continues to be the only capital city region where total stock on the market is higher than the equivalent period of 2020.
  • Auction activity picked up earlier than expected in 2021, with the week ending 31st of January returning a 77.2% clearance rate across the combined capitals.
  • Regional migration trends suggest there was a record movement of Australians from capital cities to regions in the September 2020 quarter, corroborating the increased demand for regional dwellings. 
  • Approval trends have shown continued divergence. House approvals rose 13.9% annually to new record highs, compared with an -8.6% decline in unit approvals.
  • The RBA held rates at 0.1% through January, with the RBA forecasting the target inflation rate needed to lift rates would not occur in 2021.

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