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Blue skies ahead for Australian property as owners prepare to cash in

May 9, 2024

Everywhere you look, it's blue skies for Australian real estate, and property owners are increasingly looking to cash in on the strong market confidence.

In April, Australian property values recorded a 0.6% increase, marking the 15th consecutive month of growth. Leading this trend are the mid-sized capitals, with Perth boasting a 2.0% rise, followed by Adelaide at 1.3% and Brisbane at 0.9%. In Perth, the hottest market, properties are selling in a median time of only 10 days, with discounting rates averaging just -2.4%, according to CoreLogic. 

Over the last five months, regional markets have displayed a slightly higher quarterly growth rate compared to their capital city counterparts. This trend follows a 10-month period where the combined capitals index led the way. Looking at the past three months, the strongest regional markets were aligned with the strongest capital cities. Regional WA led with a notable 5.3% gain, followed by Regional SA at 3.9% and Regional Queensland at +3.2%.

 Meanwhile, property owners are eager to seize the opportunity presented by stringer market fundamentals, as indicated by Raine & Horne data revealing a 23.83% surge in appraisals in April compared to the previous year. Additionally, listings have soared by 23.58% compared to the same month last year. On the demand front, attendance at open for inspections is 10% higher than in April last year, despite disruptions caused by school holidays and Anzac Day last month.

Angus Raine, Executive Chairman at Raine & Horne, remarked, “Heading into the winter season, the timing couldn't be better for property owners to act upon the market's strength. A winter 2024 sale presents an exceptional opportunity to leverage the current momentum and secure favourable outcomes."

He further highlighted, “While listings have surged compared to last year, they have slightly receded from March levels, which is not unusual as many vendors prefer to hold off until spring to enter the market."

Angus added, “In winter, we often see fewer listings than the other seasons, while consistent buyer demand typically leads to property prices going up, especially if the Reserve Bank maintains its stance on interest rates."

On the investment front, according to CoreLogic, nationwide rents experienced a 0.8% increase in April. In various capital cities, quarterly changes in dwelling rents remain mostly above 2.0%, with Perth leading the trend with a 3.9% increase over the past three months. Since November last year, national rents have been rising more rapidly than property values, contributing to an increase in gross rental yields. 

If you’re considering selling a property before winter, contact your local Raine & Horne agent today for an obligation-free appraisal.