Housing Value Growth
The Australian housing market upswing continued in the first month of 2024 with property values rising 0.4% and rents increasing by 0.8% after a 0.65 increase in December 2023.
According to CoreLogic, the January increase marked the 12th straight month of value rises. While the results varied from state to state, Perth, Adelaide and Brisbane values continued to rise at a monthly rate of 1% or more – providing positive indicators for current or prospective investors in those markets.
CoreLogic’s Research Director Tim Lawless revealed Perth led the capital city increases, rising 1.6% in January alone.
Regional markets are also now showing a positive trend in value growth relative to the capital cities. The combined regional index rose 1.2% over the rolling quarter compared with a 1.0% rise across the combined capitals index.
Regional WA, SA and QLD continue to record a slower pace of growth relative to their capital city counterparts; however the three regional markets are still showing record highs for their dwelling values.
Rental Market Performance
Once again, Peth led the way for rental growth over the quarter, with unit rents topping the list with a 3.7% rise over the three months ending January.
Perth’s rental market continues its record-long stretch of rent increases, as house rents rise for the ninth consecutive quarter and units for the sixth at $620 and $520 respectively.
Adelaide houses also continued the record-long stretch of rising rents following the 14th consecutive quarter of growth to produce another record-high median of $560 per week and remains stubbornly low with vacancy rates sitting at 0.4%.
Similarly, Brisbane house rents reached another record high over the December quarter, averaging $600 per week / 1.7% growth, providing persistent growth that has accelerated annual gains.
The challenge between low property supply and rising demand will remain an ongoing challenge into 2024. With housing shortfalls clashing with rapid population growth and a restricted construction sector, demand and house prices will inevitably rise for tenants in the months to come.
While we are still early into 2024, the Australian property market is looking bright for investors – particularly in the states of WA, QLD and SA. In fact, in 2023, AllianceCorp defied national averages and achieved 12% price growth across the states of WA, SA and QLD and a HUGE 26% increase in asking rents, outperforming the market by 16.9% for our clients.
So if you’re looking to invest this year, or would like some more information on the key hotspots within these states set to skyrocket in 2024 and beyond, request a no-obligation, complimentary consultation with one of our Property Wealth Planners below.