This week we look at the list of property “announcables” from Labor and talk about the elephant in the room – demand for property, which is not being addressed. The consequences of all this is obvious for those willing to look beyond the headlines.
Ahead, looks like demand will stay strong, and with more people waiting for the election and RBA cuts, supply of quality property is on the decline.
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
Those in the rental sector of the property market, a growing proportion of the population, are in the crosshairs of the affordability crisis. Indeed, as discussed in my live show on Tuesday, around 76% of those renting have a cash-flow deficit, or are in rental stress.
The latest data from the ABS reported that Rental prices Rental prices rose 6.4 per cent over the 12 months to the December quarter, down from 6.7 per cent in the September quarter. Rental price growth continues to reflect low vacancy rates and a tight rental market. However, the September quarter results showed a partial impact of the CRA changes, while the remaining impact has been reflected in the December 2024 quarter. Excluding the changes to CRA, rents would have increased by 7.8 per cent over the 12 months to the December 2024 quarter.
The recent headlines about Australia’s rental crisis is easing on the back of data from both the ABS and CoreLogic. “Finally, renters are seeing some relief after a period of extreme rental growth,” Tim Lawless said. “Over the past five years capital city rents have surged by 37%. The previous five-year period saw rents rise by just 5%.”
And to cap it all, according to a recent Yahoo Finance article, some rental properties in Sydney and Melbourne are offering free rent to try and entice new tenants, as the market passes its recent boom.
Let’s be clear, the data shows that growth in rents is moving up faster than overall CPI, which is falling, somewhat, and real wages growth. So, can we really say things are improving in a sustainable way?
Now, SQM Research managing director, Louis Christopher said the sharp decrease in rental vacancies strongly indicated Australia’s rental market crisis was not over and could deteriorate further. “It looked like there was an easing in the vacancy rate at the end of 2024 and we were coming out of the rental crisis, but that’s not the case now,” he said.
“Could there have been another surge in migration levels in recent weeks? We don’t know for sure but clearly something has driven this retreat in rental vacancies”, Christopher said.
If the federal government continues growing the population faster than new homes can be built, the rental market will remain tight. The number one solution to Australia’s rental crisis is to significantly lower net overseas migration to a level compatible with the nation’s ability to build housing and infrastructure.
But don’t expect to hear that as a policy platform in the upcoming election, because more people flooding into the country is the only way to avoid a real recession. Expect the rental crisis to continue and Australian tenants to bear the brunt.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Propaganda Says Rental Crisis Is Easing; But Don’t Believe it….
Despite the restrictions on what we can say (sic) Edwin and I are back for another Rant, looking at the latest industry tricks, and numbers. We also kick around the questions around auctions, including vendor paid advertising, and how to counteract the emotion drummed up at the event.
And, given the hopes of rate cuts, and the anticipated upcoming election, how is this playing into the market; as well as the impact of the lower exchange rate.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
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Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
The news outlets are full of more property news, with some spruiking that the hope of a rate cut in February has spurred people into action after the holidays, with a focus on Melbourne property prices rebounding.
So, let’s look at the data and see what is happening. Actually, the January update on prices from PropTrack showing that nationally prices fell just 0.1% in January, to a median value of $796,000.
Clearance rates are another metric in focus, but as I have discussed before they are also full of holes. Specifically, Preliminary clearance rates generally fall as the results of more auctions are collected. Domain reported a 66.6% national clearance but a year ago it was at 60.6%. CoreLogic preliminary data showed that the combined capitals returned a clearance rate of 65%.
As for wants ahead, well of course no one really knows. Which is why I run scenarios, which will be updated shortly. This week we had predictions from KPMG. As discussed in the AFR, KPMG chief economist Brendan Rynne said Melbourne’s house prices are tipped to climb 3.5 per cent this year, rebounding for the first time since last February, and slightly outpacing Sydney, fuelled by improved housing affordability after five years of sluggish growth, while Sydney’s housing values are expected to increase by 3.3 per cent, which is also higher than the 2.5 per cent gain last year.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
This is an edit of a live discussion with founder of bRight Agent, Aaron Scott, and our Property Insider Edwin Almeida, as we examine the current property market, and how picking the right Real Estate Agent can make a BIG difference.
Find & Compare Local Agents, and SAVE MONEY with bRight Agent! https://brightagent.com/
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Digital Finance Analytics (DFA) Blog
DFA Live Q&A Replay: Let's Play The Property Game By New Rules...
This week we examine the post holiday ramp up ahead of “Super Saturday” in a couple of weeks. The press coverage has been all about listings rising, but is that the whole picture.
We also look at the risks of purchasing the wrong property and the problem of home insurance, with more properties likely to be uninsurable.
And Edwin has some tips on how to same money on insurance for homes.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
As the new property year kicks off, Edwin our property insider and I look at the really slow ramp-up, as politics collides with reality, and the ground moves under our feet.
We look at the idea of settling property in Bitcoin, the latest numbers, and a new tool to examine suburb level data, as well as some of the latest economic and property news.
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Another outing with our property insider Edwin Almeida, as we look at the early trends for 2025, against the political backcloth of the upcoming election.
Whilst promises are cheap to make, we question their effectiveness, and ask how seriously should we take them.
Edwin makes some more predictions, and we look at the latest numbers. Things will get interesting over the next few months!
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
The REA Group just published PropTrack Rental Price Data to December Quarter 2024. They say that National median weekly advertised rents increased by 1.6% over the December 2024 quarter to a new high of $620. But note this the asking price of new rentals. And does not cover rental increases on existing property where the tenant has to pay more, or leave.
In fact, after capital city asking rents soared by more than 40% since the pandemic, rental inflation is slowing. But why you might ask? Well, given that around 70% of those in the rental sector have cash-flow pressures according to our surveys, it is mainly because we have now reached an affordability ceiling.
A greater share of household’s income is going to pay the rent, according to recent data from CoreLogic and ANU. In addition, some tenants have responded to these conditions by moving into group housing, which has tempered demand, or have moved back with parents.
So do not be deceived, this data which was reported as good news in some media today, needs to be taken in context. The slowing was the result of months and months of insidious financial pressure.
http://www.martinnorth.com/
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Go to the Walk The World Universe at https://walktheworld.com.au/
In the first show of our regular weekly run this year Edwin, our property insider and I look at the coverage of 2024, and the year ahead, and discuss where truth lays. The fact is some are changing their story as quickly as the wind blows. Why might that be?
Always, we look at the latest data and offer a tip of the week. This one is important, especially now.
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.