Top 5 headlines from this week’s Australian real estate news

1. Property worth $11.1 trillion: Australia’s property market now exceeds $11.1 trillion in value, making up over 50% of household wealth, driven by regional growth and high property sales.
2. Residential listings rising: Residential property listings increased by 7.6% in November, largely due to unsold stock, with Perth leading the growth at 20%.
3. Regional demand increasing: Regional areas are seeing sustained demand, with 35.6% of movers relocating from cities, driven by affordability and strong job markets.
4. First-home buyers still active: Government schemes continue to support first-home buyers, enabling nearly 100,000 purchases with just a 5% deposit since 2020.
5. Rent growth slowing nationally: Rental growth slowed to 7% over the past year, halving from the previous year, though rents remain significantly higher than pre-pandemic levels.

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Property worth $11.1 trillion

Property now makes up more than half of Australia’s household wealth, surpassing the combined value of superannuation funds and listed stocks.

The total value of Australia’s property market has reached $11.1 trillion, driven by ongoing growth.

CoreLogic data shows housing accounts for 56.3% of household wealth, with 527,688 property sales over the past 12 months totalling $492.4 billion.

Regional markets led the way over the past three months, with combined regional dwelling values rising 1.1%, compared to 0.3% for capital cities.

Perth recorded the strongest growth in capital city markets last quarter at 3%, followed by Adelaide (2.8%), Brisbane (1.8%), and Hobart (0.4%).

All other capital cities saw slight declines, including Melbourne (-1%), Sydney (-0.5%), Darwin (-0.7%), and Canberra (-0.3%).

Homes took longer to sell in Spring, with the median days on market increasing to 32, up from 28 days the previous quarter.

Auction clearance rates also eased through Spring. In the four weeks to the end of November, the clearance rate averaged 57.3% across the combined capitals, down from 62.7% in the first four weeks of Spring.

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Residential listings rising

The number of properties being offered for sale is finally on the rise.

Data from SQM Research shows residential property listings rose 7.6% in November to reach 272,645 properties, largely due to unsold spring stock rather than fresh listings.

Year-on-year, national listings increased by 10.4%.

Perth led the growth with a 20% rise in listings for November, followed by Adelaide (16.7%) and Hobart (12.2%). Other increases include Brisbane (8.5%), Canberra (8.3%), Melbourne (6.2%), and Sydney (4.7%).

Darwin was the only capital city to see a decline, with listings down 2.7%.

SQM Research Managing Director, Louis Christopher, notes a slowdown in the housing market, particularly in Sydney and Melbourne, where asking prices have fallen.

“New listings are very likely to fall away in the lead-up to Christmas with the typical hiatus period occurring between December 23 to Australia Day,” he says.

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Regional demand increasing

Regional centres in Australia are expected to see ongoing demand as more people leave city areas.

The Regional Movers Index from the Regional Australia Institute (RAI) reveals that 35.6% of movers in the September quarter relocated from a capital city to a regional area.

RAI CEO, Liz Ritchie, highlights the appeal of regional living, citing strong job markets and more affordable housing.

Population flow into regional areas is at its highest since March 2022 and remains 80% above the pre-COVID-19 average.

Popular destinations for city-to-regional movers include the Sunshine Coast, Gold Coast, Greater Geelong, Moorabool, and Lake Macquarie.

Ritchie emphasizes the need for the government’s help with infrastructure and services to support this growth, stating:

“It’s vital this demographic shift is recognised, and regional communities are provided with the infrastructure, services and support they need. As a nation, we must acknowledge that we are in a new era of migration where regional Australia is at the forefront.”

“Regional Australia is growing, and for that to continue we need adequate foundations. The time to lay them is now,” she adds.

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First-home buyers still active

First-home buyers continue to enter the market despite high interest rates and living costs, often with government assistance.

Nearly 100,000 first-home buyers have used the First Home Guarantee or the Regional First Home Buyer Guarantee schemes since 2020.

These schemes allow first-home buyers to secure a property with just a 5% deposit, with the government guaranteeing the loan instead of the buyer paying lenders’ mortgage insurance.

Housing Australia figures show in the 2024 financial year, 36,100 guarantees were issued, accounting for roughly one-third of all first-home buyer loans.

The average first-home buyer loan nationally is $536,561, according to the Real Estate Institute of Australia (REIA) Housing Affordability Report.

REIA President, Leanne Pilkington, reports this is a 0.8% increase from the previous quarter and 6.7% higher than 12 months ago.

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Rent growth slowing nationally

Rental growth has significantly slowed over the past year, according to new PropTrack data.

National rents increased by 7% in the past 12 months, compared to 14% the year before.

PropTrack Economic Analyst, Megan Lieu, notes a slight rise in rental property availability, stating:

“Since November 2023, total rental listings have risen by 7.1%, likely due to a return of investors and more people opting to purchase their first home instead of renting.”

Sydney and Melbourne rents rose 6% over the past year, a significant drop from 17% in the previous year.

Brisbane rents grew by 5% in the past year, down from 10% the year prior.

Adelaide is one of the few markets where rent growth remains strong, with a 9% rise compared to 10% last year, according to Lieu.

“While rent price growth has slowed in the past year, the cost of renting remains significantly higher compared with pre-pandemic times,” she adds.

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Catching up on Australian real estate news?

Read last week’s Australian real estate news article covering:

1. New home sales rising: New home sales were up 8.8% in October, led by NSW, VIC, and QLD. Growth driven by easing building material costs, overseas and interstate population growth, and low unemployment.
2. Regional growth outpacing capital cities: Regional property markets, led by Queensland and Western Australia, are growing faster than capital cities due to affordability and lifestyle appeal.
3. National dwelling values hit new peak: National dwelling values reached a record $800K in November, with slower growth as new listings increase, but affordability in cities like Brisbane, Perth, and Adelaide continues to drive demand.
4. Federal parliament housing crisis laws: New laws introduced the Help-to-Buy Scheme for low- and middle-income earners and Build-to-Rent projects, aiming to boost homeownership and add 80,000 affordable rentals over the next 10 years.
5. Units outperforming house growth: Units are outperforming houses in price growth across capital cities and regional areas, driven by affordability pressures and increased demand from homebuyers.

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