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Property market surges for 16th straight month in May

June 7, 2024

With the Australian share market hitting lows in May[i], Australia's favourite asset class, property, experienced its 16th consecutive month of growth and the largest monthly gain since October last year. 

CoreLogic’s Home Value Index rose by 0.8% in May, with mid-sized capitals leading the growth. Perth home values increased by 2.0%, Adelaide by 1.8%, and Brisbane by 1.4%[ii]. In dollar terms, this translates to a median dwelling value rise of over $12,000 month-to-month, which is great news for property owners in each of these cities. 

Sydney (0.6%) and Melbourne (0.1%) had more modest gains. That said, the Sydney market hit a new milestone $1,156,020 of in May, posting a nominal recovery, equalling the earlier record high set in January 2022.  

Tim Lawless, Research Director, CoreLogic attributed the growth rates to extremely low levels of available supply (listings) in the strongest markets.

Data from Raine & Horne shows that the number of properties for sale in Perth has dropped by more than 50% compared to May 2022, while Brisbane listings are 22% lower than two years ago. Simultaneously, demand for Australian real estate has risen nearly 6%, with Queensland properties experiencing a buyer surge, as groups at open for inspections increased by over 50% month-on-month in May with South Australia next best where demand is up by more than 21%. Open home attendances are also up in Victoria. 

Angus Raine, Executive Chairman of Raine & Horne, is encouraging vendors to take advantage of this year's winter markets and strong buyer demand to achieve string results for their properties.

“Timing the market perfectly is always a challenge. However, winter often presents a better opportunity to sell in many Australian markets because you could be competing against 15-20% fewer properties for sale. Right now, listings are especially scarce in many areas.

“Our agents, from Darwin in the NT to Kingston in southern Tasmania, are urgently seeking more properties to satisfy buyer demand,” Angus explains.

He adds, “With strong buyer interest, winter is an excellent time for vendors to consider selling their properties.”

Brisbane moves into second place for housing values

With Brisbane housing values consistently posting solid capital gains while ACT values remain relatively stable, there was a significant shift in May. Brisbane overtook Canberra to have the second-highest median dwelling value among the capitals, reaching $843,231—a position Brisbane hasn’t held since 1997. 

Moreover, for the first time since June 2008, Brisbane house values are now higher than those in Melbourne. The median house value in Brisbane is currently $937,479, which is $190 above the Melbourne median. Similarly, the median unit value in Brisbane, at $615,429, has also surpassed Melbourne's median unit value of $614,299.

Before the pandemic, Melbourne’s median dwelling value held around a 37% premium over Brisbane’s, and the ACT’s median was approximately 24% higher. However, since the onset of COVID-19, Brisbane values have increased at more than five times the pace of Melbourne values, with growth rates of 59.8% and 11.2%, respectively. Brisbane has also significantly outpaced growth in the ACT, where values have risen 31.8% since March 2020.

For a free and no-obligation appraisal of your property, reach out to your local Raine & Horne agent today to discover the true value of your home.

[i] https://www.fool.com.au/2024/05/30/why-did-the-asx-200-just-hit-a-4-week-low/
[ii] https://www.corelogic.com.au/__data/assets/pdf_file/0028/22969/CoreLogic-HVI-JUN-2024-FINAL.pdf