CoreLogic’s Settlement Risk data looks at the potential number of new units set to be completed over the coming years and this week’s Pulse takes a look at how the numbers look.
The busiest suburbs for auctions this week are in Victoria and New South Wales, with Randwick (NSW); Brunswick, Craigieburn and Kew (Vic) each with 12 homes scheduled for auction. While Queensland’s Surfers Paradise, Victoria’s Epping and Glenroy will come in equal second place with 11 scheduled auctions.
In this week’s blog, we take a look at how recent periods of value decline in Sydney and Melbourne have played out both across the city as a whole and within the individual SA4 regions.
Although national dwelling values are falling, it is having very little impact at the lower end of the housing market with the volume of sales under $400,000 continuing to trend lower.
While Sydney and Melbourne have grabbed most of the attention for the strong growth in dwelling values over recent years and the value falls more recently, Hobart has actually been the best performed capital city market in terms of value growth over recent years.
Housing finance data for June 2018 was released earlier this week by the Australian Bureau of Statistics (ABS). The data showed a continuation of the slowing of demand for housing finance with the slowdown being largely driven by investors.
The combined effect of low rental yields and declining dwelling values has resulted in a rapid reduction in overall returns from housing over the past year.
This week, 1,320 capital city auctions are currently being tracked by CoreLogic; remaining relatively steady on last week’s final result which saw 1,324 auctions held.
The decision to keep the official interest rate on hold marks the two year anniversary of the last change to the cash rate by the RBA; the longest period of interest rate stability on record.
Over the second quarter of 2018, national dwelling values have declined by -0.5%, matching the -0.5% fall in values over the March quarter.