Property Update - August 2024

Monthly highlights
 

• CoreLogic estimates put the combined value of residential real estate at $10.9 trillion.
  

 

• At 1.7%, the rolling quarterly change in national home values has eased from the cyclical high recorded through the June quarter last year when values were up 3.3%.

 

• The annual pace of growth slowed for the fifth consecutive month, with values up 7.6% over the year to July. This is down from a recent peak of 9.7% over the year to February 2024. 

 

• The rolling 28-day change in the combined capitals home value index eased through July, and has held steady at 0.4% through the start of August.

 

• Annual transaction volumes appear to have moved past a peak with CoreLogic estimating 511,211 sales in the 12 months to July, down from 513,014 over the year to June. Although easing month-on-month, annual sales activity remains 9.3% higher than this time last year and is 5.1% above the previous five-year average.

 

• Despite the stronger flow of new listings, total national listing levels have held relatively steady, suggesting the market is absorbing the above average flow of new listings. At the national level, 136,135 listings were observed over the four weeks to 4 August, -1.7% below last year’s levels and -15.9% lower than the historic five-year average. 

 

• CoreLogic’s Rental Value index recorded the smallest annual change in three years, with national rents up 7.8% over the twelve months to July, down from a recent peak of 8.6% over the year to April. The slowdown has been driven by the combined capitals, with annual rental growth easing from 9.7% in February to 8.0% in July, while the pace of rental growth in the region has accelerated from 5.4% to 7.1% over the same period.

 

• CoreLogic’s Rental Value index recorded the smallest annual change in three years, with national rents up 7.8% over the twelve months to July, down from a recent peak of 8.6% over the year to April. The slowdown has been driven by the combined capitals, with annual rental growth easing from 9.7% in February to 8.0% in July, while the pace of rental growth in the region has accelerated from 5.4% to 7.1% over the same period.

 

• The monthly pace of rental increases is now at its lowest since August 2020 (0.1%), with rents up just 0.1% in July. The slowdown is welcome news to renters who have seen rents increase by 39.7% over the past five years, adding approximately $180 to the median weekly rental value. Across the different capitals, results were varied, with rents rising in Adelaide (0.6%), Melbourne (0.3%) and Perth (0.3%), flat in Darwin and Canberra, and falling in Sydney (-0.1%), Brisbane (-0.1%) and Hobart (-0.3%).

 

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