Sirah Robb
May Market Wrap With Sirah Robb
The Australian property market remains robust, with CoreLogic’s Home Value Index (HVI) increasing by 0.8% in May—its largest monthly gain since last October and marking 16 consecutive months of growth. Mid-sized capitals led these advances, with notable increases in Perth (2.0%), Adelaide (1.8%), and Brisbane (1.4%), each city adding over $12,000 to their median dwelling values.
Tim Lawless, CoreLogic’s Research Director, attributes these varying growth rates to significantly low supply levels. Perth and Adelaide’s property listings are more than 40% below the five-year average, with Brisbane’s listings 34% under, fuelling price surges as new listings quickly meet eager buyers. Conversely, Hobart shows an opposite trend, with property listings 41% above the average, indicating a cooler market with lower demand, a downturn in sales and highlighting the impact of supply and demand.
A notable shift occurred in May as Brisbane overtook Canberra, recording the second-highest median dwelling value among the capitals—a ranking Brisbane has not held since 1997. Furthermore, Brisbane’s housing values have surpassed those in Melbourne for the first time since June 2008, a remarkable shift from the pre-pandemic era when Melbourne’s median was substantially higher. With our close proximity to Brisbane, the flow through effect of this shift on our market is promising.
Sydney’s market recovery is also noteworthy, with dwelling values rebounding to previous record highs of January 2022 after a significant -12.4% drop post-peak. This recovery is part of a broader trend where the more affordable market segments show stronger growth conditions, reflecting the shift in demand towards middle-and-lower-priced properties due to affordability constraints and reduced borrowing capacity.
Interestingly, a recent REA (realestate.com.au) survey reveals buyer and seller hesitancy, linked to uncertainties about future interest rate movements. One in four homeowners surveyed were considering selling within six months. This suggests the market anticipates more listings, yet will remain under-supplied, creating potential for upward pressure on prices if demand continues to outstrip supply.
These trends are evident in the Noosa Hinterland market, where Hinternoosa’s expertise and strategic campaigns are significantly impacting results. Over the past year, we have seen a steady increase in our average sale price and a notable uptick in market activity, with a 33% rise in appraisals and a 45% increase in new listings. Our success in securing premium outcomes through effective strategies saw us conduct 176 open homes last month, painting a clear picture that demand remains robust.
Recently, we celebrated our 35th anniversary at Hinternoosa, marking over three decades of commitment to excellence and community engagement in real estate. This milestone signifies our enduring presence and leadership in the hinterland, reflecting our deep roots and continuous innovation in serving our community.