February Home Price Movements Across Australia

Welcome to another edition of Property Edge, your definitive source for insights into the Australian property market. This week, we consider the dynamics of property turnovers, uncover the pockets of affordability within Australia’s premium suburbs, and identify the regional areas leading the property price race. Let’s dive in.

High Turnover Hotspots:

This metric measures the rate at which properties change hands within a suburb and is an indicator of demand and how tightly held properties are in that area.

• Springfield-Redbank, Brisbane: Recorded a 10.9% turnover rate, the highest among all regions in Australia. Predominantly investor-owned properties and first-home buyers are the primary purchasers.
• Surfers Paradise, Gold Coast: A 10.5% turnover rate, driven by high demand and value for money compared to Sydney and Melbourne prices.
• Port Douglas-Daintree: A 9.7% turnover rate, indicating strong demand in the region.

Low Turnover Holdouts:

• Lower Murray, NSW: A mere 0.4% turnover rate, indicating long-term homeownership.
• Canberra East, ACT: A 0.5% turnover rate, with properties in this small residential area being extremely hard to acquire.
• Daly-Tiwi-West Arnhem, NT: A 1.2% turnover rate, reflecting a stable resident population.

In areas like Canberra East, properties are highly sought after, leading to low turnover rates and a competitive market when homes do become available. Conversely, high turnover areas like Springfield-Redbank and Surfers Paradise offer clearer insights into property values due to the volume of sales, providing opportunities for both sellers and buyers to capitalise on market dynamics.

Let’s zoom out now and explore what’s been happening in property markets over the month of February.

February Home Price Movements Across Australia

The latest data from PropTrack has captured a snapshot of home price movements across the nation in February, providing a clear view of the property market’s current trajectory. Here’s an overview of the regional changes:

• National: A 0.45% monthly increase, with a significant 6.15% growth over the past year, bringing the median value to 761,000.
• Capital Cities: Slightly outpacing the national average, capital cities saw a 0.48% monthly upswing and a robust annual growth of 7.06%, achieving a median value of 823,000.
• Regional Areas: These areas experienced a 0.36% monthly growth, with an annual increase of 3.90%, resulting in a median value of 628,000.

Delving into specific regions:

• Sydney leads with a monthly growth of 0.55% and an impressive annual increase of 7.77%, boasting a median value of 1,053,000.
• Melbourne: Witnessing a more modest monthly rise of 0.28% and an annual growth of 1.33%, the median value stands at 797,000.
• Brisbane: Showcasing a monthly increase of 0.54% and a significant yearly leap of 12.16%, the median value here has risen to 797,000, equalling Melbourne’s.
• Adelaide and Perth: Both cities are performing strongly, with Adelaide’s monthly growth at 0.81% and annual at 12.76%, while Perth’s figures are at 0.56% and 16.32%, respectively.
• ACT: Showing steady growth with a monthly rise of 0.49% and an annual increase of 1.16%, leading to a median value of 828,000.

In contrast, Hobart observed a slight monthly decrease of -0.12%, and the Rest of Tasmania remained nearly static.

These figures reveal a dynamic property landscape, with some regions like Brisbane making notable strides to match the traditionally higher-valued Melbourne, while others like Perth demonstrate the strongest annual growth, reflecting a buoyant market despite economic pressures.

Let’s zoom in now and shift our focus to the premium suburbs. Here, savvy buyers can uncover surprising pockets of affordability without compromising on the dream location.

Affordable Gems in Australia’s Elite Suburbs

Buyers yearning for a prestigious postcode without the exorbitant price tag might find solace in the latest PropTrack analysis. It turns out, even Australia’s most exclusive suburbs host pockets where savvy property seekers can clinch a deal without the premium outlay.

In Melbourne’s illustrious Toorak, while the median house price can soar to 14 mil, there exists a pocket where the median sits at a relatively modest 1.9 million. This represents a staggering 12 million differential within the same suburb.

Sydney’s Vaucluse paints a similar picture, with the median in its priciest sector at 15 million, contrasting sharply with 3.2 million in its more economical zone. The premium pocket boasts harbor views and private beaches, while the less costly area remains inland.

The trend extends across the country. In Noosa Heads, Queensland, house prices in the ritziest pocket peak at 7.8 million, but another pocket offers homes around 1.5 million. Perth’s Mosman Park displays a notable range too, with riverfront mansions averaging 6.8 million, but near the train station, the median plummets to 748,000.

For units, waterside locations reign supreme. Hunters Hill in Sydney exhibits the most significant gap, with top-pocket units at 5.8 million versus 596,000 in the cheapest pocket.

The findings underscore a valuable real estate truth: even within the most coveted suburbs, there are areas where the dream of upscale living is surprisingly attainable. These pockets not only offer a prestigious address but also access to the same sought-after amenities and schools as their pricier neighbours, proving that luxury might just be a street away.

From the allure of luxurious locales, we now turn our attention to the regional markets. Here, we see a tapestry of growth, as certain towns defy trends and set the pace for capital gains.

Regional Property Markets Surge Ahead of Capital Cities

In a striking reversal, regional Australian property markets are currently outpacing their metropolitan counterparts, marking a shift reminiscent of the pandemic-driven exodus to regional areas. This resurgence is led notably by Western Australia and Queensland.

Analysis indicates that property values in regional areas have risen by 1.2% over the past quarter, slightly edging out the 1.0% increase seen in the capital cities. The trend is particularly pronounced in certain Western Australian and Queensland locales, where migration has spurred significant demand.

Among the standout regions are Albany and Bunbury in Western Australia, with quarterly value growth of 7.7% and 6.2%, respectively. In Queensland, Townsville and Bundaberg are also emerging as hotspots, with annual increases exceeding 10%.

Properties in these thriving regional markets are selling rapidly, with Bundaberg in Queensland boasting a median time on market of just 15 days. Other quick-selling regions include Toowoomba, also in Queensland, and Busselton and Bunbury in Western Australia, each averaging less than 20 days on the market.

On the flip side, slower markets like Batemans Bay in New South Wales are seeing extended median selling times of up to 75 days, with sellers often needing to offer significant discounts.

The rise in regional property prices correlates with population growth in these areas, a trend that has led to a robust performance in markets like Busselton, WA. Here, factors such as lifestyle appeal and developments like the local airport have contributed to a high demand for housing, as reflected by a 4.2% rise in median house sale prices in the December quarter.

Townsville in Queensland is another city poised for growth, with experts predicting it to be one of Australia’s strongest property markets in the next two years due to a demand-supply imbalance and the commencement of major projects in the area.

As regional property markets gain traction, experts suggest that the relative affordability and limited housing supply are key drivers of this growth. This trend, they argue, may lead to sustained capital growth well into 2025, offering a compelling proposition for property buyers seeking value outside of metropolitan areas.

As we wrap up this week’s exploration of the property landscape, we hope the insights shared inspire and guide your real estate endeavours. Stay tuned for more market updates and analysis in the next issue of Property Edge, where we keep you ahead of the curve in the ever-evolving world of property.

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