Weekly Property News 15th Edition 2021
“People are moving on up or moving on out to Vic Regional”
Hi Guys, it’s Dean O’Brien from OBrien Real Estate with the 15th edition of the Property News for 2021 where real estate information is on the house.
There has been a myriad amount of data and announcements released this week, all of which provide great insights into the property market which in turn we provide guidance on conditions we can expect going forward.
Here is a snapshot of what has transpired:
- Home Boost has certainly driven building approvals. Data was released showing council approvals to build new homes rising by 17.4 percent in March – the most in 3 years. Approvals are up 47.4 percent on a year ago, – it’s the strongest annual growth rate in 11 years.
- There is no surprise home lending is at record highs but you might be surprised by which sectors of the market are driving the growth. The value of new loan commitments overall for housing rose by 5.5 percent. Owner-occupier loans overall were up 3.3 percent, however, it was investor loans the drove the market and they were up by 12.7 percent to a 3½-year high of $7.814 billion. Renovation loans rose 2.0 percent to 11-year highs.
- Internal migration data was released. In the December 2020 quarter, interstate migration was very subdued, in fact, it was the fewest we have seen since 2015. But internal migration within the states saw a net 42,971 Aussies move from capital cities to regional areas in 2020 – the most on record since 2001.
- The CoreLogic Logic Home Price Index was released for April, Victoia Metro home price growth for the month was 1.3 percent across all dwellings with annual growth now at 2.2%. Vic Regional home price growth for the month was
1.8 percent across all dwellings with annual growth now at a whopping 11.3%. Rental Prices for House is now at a 1.2 percent premium to 12 months ago whereas unit rental prices are trading at a 7.6 percent discount. Rental return yields are still attractive with the average at 2.9 percent for all dwellings in Vic Metro and at 4.1% for Vic Regional.
- And lastly, there were no surprises with the Reserve Bank on Tuesday announcing the interest rates will remain on hold.
That’s all for this week, I’m Dean OBrien 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.