How the east coast capitals are faring
A new report has looked at the gains made by Brisbane, Sydney, Melbourne and Hobart markets over the past few years.
According to PRD’s major city market update for the first half of 2022, Brisbane’s property market has seen a massive 36.8 per cent growth over the year, pushing the median house price to $910,000.
The inner ring has seen a whopping 64.2 per cent growth from 2017, resulting in premium pricing of at least $1.1 million, while the outer ring saw 69.3 per cent growth, pushing prices to just below $800,000.
The Queensland capital has also reported historically low vacancy rates, which the report attributed to remote work arrangements.
House rental costs have risen the most in the middle ring, while unit rental prices have risen the highest in the outer ring – pushed higher by the area’s 1.1 per cent vacancy rate.
2021 was also a big year for Sydney, with all three rings of the city reporting considerable price rises – and median property prices in the inner and middle rings exceeding the $2.5 million mark.
Moreover, vendors were able to shift discounts to premiums as the average number of days it took to sell both homes and flats in all rings fell significantly, making the current property environment a seller’s market.
According to the PRD report, vacancy rates in Sydney have fallen to a much healthier level than they were during the initial outbreak of COVID-19 in early 2020, approaching the 3 per cent healthy standard set by the Real Estate Institute of Australia (REIA).
Between 2017 and 2021, Melbourne’s housing market experienced tremendous growth. Buyers looked at the outer-ring market for the most affordable stock, which resulted in 53.4 per cent of sales sold under $900,000. The inner-ring market saw a 12 per cent increase.
Unit vacancy rates in all rings have fallen below the 3 per cent healthy benchmark set by REIA, pointing to a more balanced rental market.
Hobart is on a roll with its lowest level of housing supply since 2017, causing rapid price rises. And as house sale price growth outpaced rental price growth, this caused a rental yield compression over the last 12 months.
Still, the inner and middle rings both had extremely low vacancy rates, “indicating quick occupancy and rental cash flow”, according to the report.
The middle ring currently has affordable properties available, but buyers are advised to quickly make a purchase to overtake steadily rising vendor premiums, which have reached an all-time high in 2021.
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