It’s no secret 2022 was a challenging year for the property industry.
Amidst rising interest rates, inflation, price increases, labour shortages and supply chain challenges, AllianceCorp is proud to have pulled through and delivered some INCREDIBLE results. It is truly a testament to the level of dedication and commitment towards our clients and we can safely say there is plenty in store for 2023.
Let’s take a look at the year in review.
THE RENTAL MARKET:
- The national vacancy rate hit its lowest point on record in November 2022 at a mere 0.8%
- With the exception of Brisbane and Darwin, each capital remains in a landlords’ market, generating high levels of competition among tenants and further fueling the existing rental crisis – positive news for our investors!
- To give some context to the growth landlords have enjoyed over the last 12 months, asking rents for houses are sitting at $530 nationally, incurring an increase of $60 YOY while units are averaging $490 an increase of $70 YOY.
- In the current climate, landlords are in a very favourable position to increase their weekly rents and improve their cash flows. The biggest increase in weekly rents YOY were seen in: Melbourne (+14.9%), Sydney (+14.6%), Adelaide (+14.3%), Brisbane (+12.2%) and Perth (+10.5%).
- In regional areas, rent values also increased by 8.7%
THE HOUSING MARKET:
- After national housing prices surged 28.6% in the recent upswing, adding approx. $170,700 to the value of the average dwelling, national home values fell -3.5% in the three months to November and -3.2% over the past 12 months, marking the largest annual decline in national home values since September 2019.
- While this heavily impacted buyer confidence, CoreLogic’s Research Director, Tim Lawless said the easing in the rate of decline is largely derived from the Sydney and Melbourne markets, but is also evident across many of the smaller capitals and most regional markets.
“Three months ago, Sydney housing values were falling at the monthly rate of -2.3%. That has now reduced by a full percentage point to a decline of -1.3% in November. In July, Melbourne home values were down -1.5% over the month, with the monthly decline almost halving last month to -0.8%,” he said.
- To date, Sydney remains the only city where housing values have fallen by more than 10% from their peak. Sydney house values increased by 27.7% before peaking in January. Despite the sharp fall in values through the downturn to-date (-11.4%), Sydney home values still remain 10.3% above pre-COVID levels (March 2020).
- Due to a lesser increase, Melbourne values are only 2.8% above where they were at the onset of COVID.
ALLIANCECORP’S PERFORMANCE:
- While national YOY growth declined by -3.2%, AllianceCorp is proud to say that our investment-grade properties located in key suburbs increased by a whopping 22% over the last 12 months
- Targeting key growth areas in almost every state across the nation, AllianceCorp had their greatest successes in the states of Western Australia, Queensland and Victoria
Compared to Corelogic’s national average (-3.2%), AllianceCorp’s targeted areas in Western Australia achieved an average of 15.4%, Queensland achieved 34.75% and Victoria achieved 13%
- To provide some context around the growth achieved, our client’s investments in Victoria alone achieved an average uplift of approx. $100,000. Just imagine what you could have done with all that extra money!
- Having derived some huge successes in 2022, AllianceCorp does not plan on stopping there. Moving into 2023, AllianceCorp will continue to target prime growth areas at a range of price points to suit the individual needs of each client so if this is something you are looking to explore in the new year, we encourage you to download our latest eBook ‘The Top 12 Property Hotspots Set To Skyrocket Your Portfolio In 2023’ to find out more.
To summarise the year in review, our advice to you is this: invest when you can next afford to.
As soon as you’re in a position to buy a property, you have your deposit and the bank can lend you the money, you should be looking at purchasing – not waiting for the market or interest rates to come down.
The property market has demonstrated resilience amidst the many property cycles over the years, and has proven that it can be the most profitable and safest asset class available to you with the right help – and that’s where we come in.
So if you’re thinking about kickstarting your property investment journey in 2023 and capitalising on these successes to give you the financial freedom you deserve, simply fill out the form below to request a no-obligation strategy session with one of our esteemed Senior Property Wealth Planners valued at $495 for FREE.
To your success in 2023 and beyond,
From the team at AllianceCorp.