Monthly Property News 11th Edition 2023.
“A Demand/Supply Imbalance”
Hi guys, I’m Jason Mudford from OBrien Corporate with the eleventh edition of the property news for 2023.
With government agency NHFIC reporting a shortage of 175,000 dwellings by 2027, it has meant the industry has got it a little creative with a report compiled by research firm CoreLogic in conjunction with Archistar and Blackfort where it has identified 230,000 potential granny flat sites in Melbourne. The report demonstrates a combination of accessibility and opportunity to fast-track affordable housing options which can help remedy the housing shortage. The report identified the Mornington Peninsula with the highest potential for granny flat development with 23,870, the next highest was the City of Casey with 16,861, Monash with 13,960, Knox with 13,741, and Manningham with 13,063 as the top five municipalities for the most granny flat development site potential.
Melbourne should be a major drawcard for buyers right now, home values as reported by Corelogic in October are up 0.5% the smallest rise of the 5 major capital cities for all dwelling types for the month. The drawcard for buyers is in the data over the last 12 months, Melbourne has only increased 2.4%, compared to Adelaide values being up 6.5%, Brisbane up 7.8%, Sydney up 9.0% and Perth’s up 10.8%. Looking at regional markets in Victoria, home value declines have stabilised for the second consecutive month with a 0.1% increase across all dwelling types.
October has been a busy month for auctions in Melbourne, and so far in 2023, auctions have been achieving better results than private sales according to the latest research by the REIV. Sellers looking for a better result should look towards auctioning their home and there is still plenty of time before the auction season comes to a close with auctions likely to be occurring right up to Saturday 23 December.
The Reserve Bank meet on Melbourne Cup Day and many homeowners are bracing themselves for a possible rise. All of the big four banks now predict that a cash rate hike will likely occur in November, however, economists can be like weathermen so be sure to pack an umbrella for your Melbourne Cup festivities regardless of the forecast. Let’s hope the US Federal Reserve interest rate decision on Thursday is a pause which might hopefully blow some blue skies over to Australia. The property investment market continues to look to have stabilised itself with little increases recorded in rental prices over October. The market had one of its biggest bull runs with 36 months of consecutive increases. The ABS released its building approval data in October and approvals increased for the first time in a long time by 7% across the board, however, approvals are still tracking 22.9% off rolling 12-month data.
That’s all for this month. I’m Jason Mudford, and remember that the information provided is of a general nature. You should always seek independent legal, financial, taxation, or other advice in relation to your unique circumstances.