Core Logic has released their newest housing market update for May 2017.
In the below overview we have included a summary of Core Logic’s overall analysis of the property market.
We’ve also included their Brisbane housing market video below along with a transcript.
Australian Housing Market Overview
This month has seen somewhat of a downward slope in the property market with both Melbourne and Sydney seeing the lowest rental yields on record and Australia-wide capital gains on property has taken a slump.
While investors in the two major capitals – Melbourne and Sydney – are starting to sweat, Brisbane is proving to be a steady contender. Remaining much the same as previous months, the Brisbane property market has seen “mild growth” across houses according to Corelogic data.
House values have risen by 2.6% in the past year. And while this rate is not seeing as much growth as the likes of Sydney or Melbourne, there’s promise in a slow but steady capital gain.
On the other hand, unit values are beginning to slip lower. Brisbane unit values have actually seen a 3.1% decrease over the last year – a statistic that may be a little unsettling for investors in the area.
The weaker conditions in the unit sector may be attributed to the high supply levels across the city, particularly within inner city suburbs. There’s less of a supply issue further out from the city centre but here prices are beginning to slide – perhaps due to the negatively impacted buyer sentiment towards these types of property.
Houses are certainly the property to invest in with the median rental rate in Brisbane remaining steady for the last 12 months. While the rental yield of units has fallen by 2.3% in the same time.
Despite this somewhat weak rental sector, rental yields across Brisbane are substantially more than you will find in Melbourne or Sydney so this is certainly a consideration for Australian property investors.
Brisbane Property Market
The below analysis is a transcript taken from the above video. Start time: 3:22 – 4:15
Brisbane’s housing trend remains similar to previous months with mild growth recorded across Brisbane houses while the unit values slipped lower. House values have been rising by only 2.6% over the past 12 months across Brisbane, while unit values have actually fallen by 3.1%.
The weaker conditions in a unit sector can at least partially be attributed to concerns around high supply levels across key regions of the inner city. However, the weakness in a unit sector appears to be more broadly spread across Brisbane which may suggest that buyer sentiment has been negatively impacted by these supply concerns.
Rental market conditions have remained subdued with a median rental rate holding virtually steady for houses over the past year and falling by 2.3% over the year for units. Despite the relatively weak rental sector, rental yields across Brisbane are substantially higher than what can be found in Sydney and Melbourne.