March Property Review
March was an incredible month both in terms of the raw growth, and also the geographical spread of what was a record breaking month.
The Corelogic nation housing index rose 2.8% nationally for the month, being the fastest monthly increase in 32 years.
Interestingly, the last time the market behaved this way regulators stepped in to slow the rapid market growth, however that was in a time where recovery from the COVID recession was not an element. Indications have been that that regulators have no intention to step into the current market cycle, however such unprecedented growth, should it continue, may force their hand.
This time around, the Government seems determined to support a property led recovery from the recession. Previously, it was investors who were restricted and this would seem a potential option, as there soon may be a point where owner occupiers are simply priced out of the great Australian dream. Time will tell and we’ll keep a very close eye on things.
Rental markets remain spread, with regional areas still in huge demand whilst certain pockets of metro markets being well below previous peaks. Yield continues to suffer with housing price growth heavily outpacing rental growth.
Some of the key take outs;
Sydney led the charge with 3.7% growth, and now sits at 6.7% quarterly growth
All capital cities, and ‘rest of state’ areas grew by at least 1.4% showing huge geographical disbursement
Major capitals, Sydney and Melbourne, are now ahead of their highs prior to recent downturns
Larger capitals are now outpacing regions areas on a growth basis, despite continued strong results in regional areas
Results continue to be driven by by extremely low supply vs demand
Auction clearance rates remain very strong at over 80% for March
