Latest news with #capitalcities
News.com.au
3 hours ago
- Business
- News.com.au
Wild number of Aussie millionaires revealed
Australian property has proven itself to be one of the most successful ways to build wealth for generations. A new report reveals more than four in 10 homes across the combined capital cities now have a median value of $1 million or more. To be exact, a record 41.6 per cent of capital city homes are worth $1 million-plus, up from 14.3 per cent only ten years ago. In regional Australia, almost one in five homes are now worth $1 million-plus, up from 0.5 per cent a decade ago. The data busts the perception that Sydney is Australia's only wealthy market. But of course, Sydney does have the biggest portion of homes at this price level, at just under 65 per cent of stock. As the report points out, just 10 years ago only houses with five or more bedrooms had a median value over $1 million in Greater Sydney. Now, the median value for all types of houses is over $1 million. It's $1.3 million for three bedroom houses and $2 million for five bedroom houses. After a stellar run since the pandemic, home values in Brisbane have grown to such an extent that 40.2 per cent of the city's homes are now worth $1 million or more. This is up from just 6.2 per cent five years ago and 2.8 per cent a decade ago. South-East Queensland is undoubtedly the most prized destination of choice for interstate migrants who can work from home. People have flocked to the Sunshine State from all over the country since 2020 for the warmer weather, relaxed lifestyle and greater affordability. Brisbane, the Gold Coast, and the Sunshine Coast have been especially popular with interstate migrants and investors, too. In terms of the Gold Coast, I've noticed much activity locally as Queensland prepares to host the 2032 Olympic and Paralympic Games. Major new investment in roads, sporting facilities and transport is revitalising many residential suburban areas, creating more attractive and valuable neighbourhoods to live in with legacy benefits for the locals to enjoy for decades to come. In terms of the other East Coast capital cities, 30.9 per cent of homes in Melbourne are worth $1 million or more, and in Hobart, it's 11.9 per cent. Canberra was not included in the data. The rising number of Australian homes worth $1 million or more reflects the prosperity of our nation. It also reflects a strong continuing cultural belief that home ownership is a worthy lifetime aspiration, and a cornerstone financial asset for a comfortable retirement. But we can't ignore the downside of having one of the world's most high-value markets. Affordability is a big challenge for younger generations, which is why it's so important to research all the state and federal government help available to help you buy a home sooner. Last week's second interest rate cut for 2025 has likely improved your borrowing capacity, too.
ABC News
3 days ago
- Business
- ABC News
Rate cuts fueling house price rises
Australians are being forced to fork out more for a home with the median price of a house across the capital cities climbing further above the one million dollar mark. The latest data from Cotality - formerly known as CoreLogic - shows all the capitals rose by at least point four of a per cent in May.
ABC News
3 days ago
- Business
- ABC News
House prices rise in Australian cities as rate cuts propel market
New data shows house prices surged 0.5 per cent across capital cities in Australia in May.
ABC News
3 days ago
- Business
- ABC News
Property prices lift in May as interest rates fall, analysts expect rises of up to 10pc by early 2026
House prices have continued rising across the country amid interest rate cuts and expectations are that as more buyers return to the market, property values will keep rising. Property analysts think capital city combined dwelling prices could rise between 6 per cent to 10 per cent by late this year or early next year. Data from Cotality (formerly CoreLogic) shows that house prices trended higher in May. Its national Home Value Index recorded another 0.5 per cent in May, taking the national index 1.7 per cent higher over the first five months of the year. The gains were broad-based, with every capital city posting a rise of at least 0.4 per cent through the month. Cotality's head of research, Eliza Owen, says house prices are being fuelled by interest rate cuts — both those that have already happened, but also potential cuts in the coming months. "At the moment another two rate cuts are expected over the course of the year by most of the major banks, and the influence on the market is likely to be higher values and higher sales activity. "Yes you will get a boost to borrowing capacity from lower interest rates, but that still puts an affordable purchase price for many households much lower than where property prices actually are especially when you consider the median house value in the combined capitals is now over $1,000,000. "And I think other factors like rising unemployment, softer wages growth could put a bit of a lid on that growth rate as well." Ms Owen said, off the back of Labor policies aimed at helping first time buyers, there could also be a further rise in buyer sentiment. She noted that while the government's expanded 5 per cent deposit guarantee doesn't 'go live' until next year, some first home buyers may look to get into the market this year to beat the rush of buyers expected next year. SQM's head of research Louis Christopher said he also expects more rate cuts and house prices to rise amid more buyer demand and tight supply of housing. The property research firm is forecasting a rise in capital city combined dwelling prices of 6 per cent to 10 per cent next year. Mr Christopher said the RBA would cut the cash target rate at its next board meeting, scheduled for July 8 by another 0.25 per cent, but it could cut by as much as 50 basis points "if there are any further softening signs for the economy such as a weak GDP growth number and/or a weakening jobs market". He said this will put upward pressure on prices from as early as the September quarter. He expects dwelling values per capital city by next year of: Sydney +3 per cent to +7 per cent, Melbourne +2 per cent to +6 per cent, Brisbane +11 per cent to +16 per cent, Perth +15 per cent to +20 per cent, Adelaide +10 per cent to +14 per cent, Hobart +1 per cent to +5 per cent, Canberra +2 per cent to +6 per cent. He noted SQM research has been recording a firming of auction clearance rates and higher volume activity in very recent weeks. "Other factors contributing to this present increase in buyer demand include the end of the federal election and ongoing increases in underlying demand for accommodation given our ongoing surging population growth rates. "This, combined with ongoing low levels of dwelling completions, are all fuelling the conditions for a short-term surge in dwelling prices." He said while the federal government have also committed to building new homes to boost supply, its target of 1.2 million dwellings completed by FY29 "is very likely to be missed by an estimate of between 250,000 to 400,000 dwellings", which would mean supply relatively to demand remains weak for some time yet. Gino Farina is the founder of mortgage broking business Bondi Broker based in Sydney but services clients across the country. He says rate cuts are already factoring into buyer decisions and another two rate cuts expected this year will see more people be able to get a home loan. He thinks that could further push up demand for housing and thereby prices. "It does increase peoples borrowing capacity … that increased confidence is helping," he said. "We're seeing a mix [of buyers]. We're still seeing the first home buyers … and we [help them] really leverage a lot of the government programs to help those people get into the market. "Investors are still out there but it's obviously more challenging for investors, and also for people looking to upgrade. "What were finding now is buyers are realigning their expectations to what they can afford." Ms Owen said the monthly rise in Cotality's house price index values comes after a short-lived decline of just 0.4 per cent over the three months ending January 2025, with the February rate cut a key factor supporting property price rises. However, she noted that the annual pace of gains in the national index slowed to 3.3 per cent, the slowest twelve-month change since the year ending August 2023. Only Melbourne (-1.2 per cent) and Canberra (-0.7 per cent) have recorded an annual fall in dwelling values. Capital city dwelling value trends are converging, with the gap between the highest and lowest annual changes narrowing to 9.8 percentage points, and it hasn't been this narrow since March 2021. "Markets like Brisbane, Adelaide that were going really, really strong this time last year have slowed down your quarterly growth rate of about 1 to 1.5 per cent. "Meanwhile, cities that were seeing more consistent declines like Melbourne and Canberra are now into positive territory for the Sydney market, which are quarterly uplift of 1.1 per cent." Regional markets are also showing a positive trend, with each of the 'rest of state' markets recording a rise in values through the year-to-date. The strongest gains recorded were in regional South Australia, where values are up 3.8 per cent over the first five months of 2025. Ms Owen said the largest capitals, Sydney and Melbourne, are now among the softest rental markets in the country following a period of extreme rental growth. The slowdown in rental growth across most markets comes despite rental vacancy rates remaining close to historic lows. Every capital city continues to see rental vacancy rates below 2 per cent compared with a decade average of 2.7 per cent across the combined capitals. "The rental market has grown about 3 to 3.5 per cent over the past 12 months and it's a slow down in the pace of growth. "That's down from about 8 per cent in the previous 12 month period. We would expect that that growth [in rental prices] will continue to slow, maybe we'll get a stabilising.
News.com.au
26-05-2025
- Business
- News.com.au
Australian real estate: should I sell my home in winter 2025
While many sellers wait until spring to put their property on the market, there are benefits to selling in winter – just as long as you keep a few seasonal considerations in mind. PROS AND CONS OF A WINTER SALE It seems to be a general consensus among sellers that winter is not an ideal time to sell property. Data from Ray White shows that on average, Australia experiences a 7 per cent drop in property listings between May and June each year, based on market – wide records studied from 2022 to early 2025. While there are a few warm climate areas that buck this trend (Darwin, Brisbane and Regional Queensland), the majority of capital cities and regional areas see a marked decrease in listings (-2 per cent nationally) during winter. However, Ray White head of performance and recognition Bianca Denham says less listings means less competition for those who do decide to sell during the colder months. 'If I was selling a property, I'd rather sell my home when there's fewer other properties similar to mine because it gives buyers less choice,' she says. 'Potentially it might give me a favourable pricing outcome because there's less options.' And while there may be less sellers during winter, there are always buyers to be found no matter what season it is. 'People don't buy because the daffodils are out,' she says. 'They buy because they got a promotion, they finished saving, they're having a baby – all these other life events.' Another benefit to selling in winter is that it enables you to showcase how cosy your home is, especially if you have a fireplace, says McGrath Hunters Hill director Tracey Dixon. 'Some of my properties over the years have lent themselves to that kind of environment,' she says. However, the weather may not be on your side and gardens may not be looking their best, says Denham. 'If the weather is terrible you'll have to contend with things like mud,' she says. 'But one thing I know is if someone wants to buy a home they'll be there – rain, hail or shine.' THINGS TO CONSIDER Before listing in winter, make sure you think about the demographic of buyers and the type of property you are selling, Dixon says. 'People need to consider the unique nature of their property and what the benefits are for the potential purchasers,' she says. 'Aspect is also a consideration. If you have a waterfront home that is south facing that's going to be cold and windier in winter then it certainly wouldn't be the ideal time to be selling.' If you do list in winter, it's best to go above and beyond to make it warm and inviting. 'People need to think about their heating systems, how they're going to make their properties light and bright even though it might be less sunny,' Dixon says. Denham says it's important to give the garden a once over and freshen up the lawn. 'Make some considerations for people coming through. If the weather is going to be wet, it's going to be muddy – put extra door mats out,' she says. WINTER FORECAST Denham says she expects this winter to 'kick along quite nicely' now that the Federal election is over and more interest rate cuts seem likely. 'We've got stability of government, a strong focus on housing and affordability of housing – I think that's only going to provide confidence to the market,' she says. Based on her conversations with other agents across the country, Dixon says she expects to see strong activity from investors over the winter months. 'From what we're seeing across the board, people are getting back into looking at real estate as one of Australia's greatest investment opportunities,' she says. 'I think that's going to really fuel the months between June, July, August this year. 'I think a lot of people are thinking they might get into the market before the market takes off again next time and that could be as early as later this year or it could be maybe 2026. 'I think all eyes are back on property throughout the country now. Everyone thinks this is the place to invest their money for the future.'
