Monthly Property News 4th Edition 2022
Australia Tops the World for Home Price Growth
Hi Guys, it’s Dean OBrien from OBrien Real Estate with the fourth edition of the monthly property news for 2022 where real estate information is on the house.
Knight Frank released its Global House Price Index in March and Australian home values grew at the fastest pace globally in 2021. Prices worldwide increased by 10.3% last year with Australia virtually lapping this figure, clocking up real (after inflation) price growth of 17.5%.
With the first quarter of 2022 data now released by Corelogic the increase for home prices Nationally was 2.4% or approximately $17,000 on your home. The same time last year saw home price growth at more than double this rate at 5.8% nationally. Australia has now enjoyed 18 consecutive monthly increases in home prices.
However, Melbourne and Sydney again are the two markets that not growing with both markets falling for the month by 0.1% and 0.2% respectively. The two capital cities performing the best are Brisbane and Adelaide recording 2.0% and 1.9% growth for the month.
Housing availability is a major reason for home price changes, advertised listings in Brisbane and Adelaide remain 20% to 25% down on a year ago, whereas in Melbourne, total advertised supply was 8% above the previous five-year average.
Although Melbourne is flatlining in price growth Regional Victoria continues its growth trend with a 0.9% increase in home prices. The number of people living in regional areas of Australia increased by almost 71,000 residents, while residents living in the capitals fell by approximately 26,000 which was mostly due to the sharp drop in Melbourne.
Looking at the rental performance you’ll see rental prices for units in Melbourne over the last quarter have increased 2.5% and are up 6.9% over the last 12 months. This trend should continue with higher migration levels a positive for investors which could see in the longer term more investors return to the market as well as permanent migrants. The growth in unit rentals has seen an 8.5% reversal at the trough of the 2020 covid price falls.
The Federal Budget was handed down on Thursday 24 March and the major changes for real estate are with the three Guarantee schemes:
1/ The First Home Guarantee is now accepting 35,000 applicants each year for 1 July 2022 up from the current 10,000.
2/ The Family Home Guarantee, which previously allocated 10,000 places over a four-year period, will now offer 5,000 guarantees each year from 1 July 2022.
3/ The new Regional Home Guarantee will offer 10,000 places each year from 1 October 2022 to home buyers, including non-first home buyers and permanent residents, seeking to purchase or construct a new home in regional areas.
And lastly for this month property news, finder.com.au released some interesting data. Of the five skills that Australians wished they were taught in school, 44% wished they learnt how to invest. Another 46% wished they were taught how to manage their finances while 32% wished they were taught how to start a business.
That’s all for this month, I’m Dean O’Brien and remember 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.