Latest news with #propertymarket
ABC News
6 hours 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.
The Sun
9 hours ago
- Business
- The Sun
Inside the cheapest three-bed houses to buy in YOUR area – prices start at just £45,000
JUST when you thought it couldn't get any harder to buy a home, house prices have hit a new record. Rightmove said the average house price hit £379,517 earlier this month, with demand up by 3% compared to last year. 24 This may seem out of reach for many buyers, as even a 5% deposit would require saving over £18,976. For those aiming for a 10% deposit to secure a lower mortgage rate, the savings needed would soar to an eye-watering £37,951. However, for hopeful homeowners without a hefty savings pot, there are still properties out there that won't cost a fortune. With the help of Rightmove, we've unearthed the cheapest three-bedroom homes across the UK's nine regions, with prices starting at an incredible £50,000. To keep things fair, we've focused on freehold properties. This means you'd own both the building and the land outright, avoiding the steep service charges and ground rent often associated with leasehold properties. It's worth noting, though, that properties at this price point often come with their own challenges and may require significant renovation work. Getting a survey done before purchasing is crucial, as it can help you avoid unexpected repair costs and give you a clearer idea of the investment needed to bring the property up to standard. Plus, don't forget to budget for extra expenses such as legal and valuation fees, which will require some extra cash in the bank. Best schemes for first-time buyers North East: Peterlee, Durham - £45,000 5% deposit: £2,250 10% deposit: £4,500 24 24 This three-bedroom house in County Durham is available for £45,000. Situated on Thirteen Street in Peterlee, this terraced property boasts spacious living areas and a low-maintenance courtyard, making it an appealing prospect for buyers. The freehold home features a large kitchen and a downstairs bathroom, presenting an excellent opportunity as a starter home or an investment. However, it's worth noting that the property will require some internal and external renovation. Northern Ireland: Tempo, County Fermanagh - £58,000 24 24 Located in a desirable village centre, this three-bedroom semi-detached house offers an exciting renovation opportunity for builders, developers, or landlords. This three-bedroom house in Tempo, County Fermanagh is available for £58,000. With a rear yard, outbuilding, and spacious rooms, this property offers significant potential, but requires a full renovation and currently has no heating system. North West: Blackpool - £59,950 5% deposit: £2,998 10% deposit: £5,995 24 24 This three-bedroom house in Blackpool is available for £59,950. Requiring modernisation throughout, this three-bedroom mid-terraced house presents a rewarding opportunity for renovators or first-time buyers. Boasting spacious living areas, a dining kitchen, and proximity to local shops, the property offers significant potential to create a desirable home or investment, and is offered with no chain. It also comes with UPVC double glazing and gas central heating. Scotland: Brechin, Angus - £60,000 5% deposit: £3,000 10% deposit: £6,000 24 24 This three-bedroom house in Angus is available for £60,000. Nestled in the heart of Brechin, this three-bedroom townhouse offers a fantastic minor renovation project for those seeking to create their own dream home. Located in a conservation area and part of a C-listed building, the property boasts spacious rooms, traditional features, and a garden with a carport, presenting a unique opportunity for a buyer with vision. Yorkshire and the Humber: Saltburn-By-The-Sea - £60,000 5% deposit: £3,000 10% deposit: £6,000 24 24 This three-bedroom house in Saltburn-By-The-Sea is available for £60,000. Located in the popular Queen Street area of Carlin How, this three-bedroom mid-terraced house presents an ideal investment for first-time-buyers. Benefitting from gas central heating, double glazing, and a rear yard, this property requires minimal immediate work. This also makes it an attractive option for landlords seeking a hassle-free addition to their portfolio. What help is out there for first-time buyers? GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home. Lifetime ISA - This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top. Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you're restricted to specific ones. Mortgage guarantee scheme - The scheme is open to new 95% mortgages until June 30, 2025. Applicants can buy their first home with a 5% deposit, it's eligible for homes up to £600,000. Wales: Treharris, Taff Bargoed Valley - £70,000 5% deposit: £3,500 10% deposit: £7,000 24 24 This three-bedroom house in Treharris, Wales is available for £70,000. Located in the heart of the town, this three-bedroom, three-storey mid-terrace house offers a blank canvas for ambitious renovators and developers. With spacious rooms, original features, and good transport links, this property is ripe for modernisation, offering the potential to create a dream home, a profitable resale, or a valuable rental investment. West Midlands: Goldenhill, Stoke-on-Trent - £75,000 5% deposit: £3,750 10% deposit: £7,500 24 24 This three-bedroom house in Goldenhill, Stoke-on-Trent is available for £75,000. This spacious terraced home offers a fantastic opportunity for buyers seeking a project to put their own stamp on, ideal as a starter home or buy-to-let investment. Requiring refurbishment throughout, the property features two generous reception rooms, a rear yard, and convenient access to local amenities and transport links. East of England: Lowestoft, Suffolk - £90,000 5% deposit: £4,500 10% deposit: £9,000 24 24 This three-bedroom house in Lowestoft, Suffolk is available for £90,000. This Victorian mid-terrace house, located within walking distance of the town centre and train station, presents a rare opportunity to add value in a sought-after location. Boasting classic period features, generous room proportions, and a rear courtyard, this property offers a perfect canvas for modernisation. East Midlands: Boston, Lincolnshire - £95,000 5% deposit: £4,750 10% deposit: £9,500 24 This three-bedroom end-of-terrace house in Boston offers a convenient town centre location and the added benefit of being sold with no onward chain, making it an attractive option for investors or first-time buyers. Situated on a no-through traffic road, within easy reach of amenities and transport links. This promises a quick and straightforward purchase. What types of mortgages are there? IF you're looking to buy your first home, there's a few things you should be aware of. For starters, you'll need to decide whether to go for a fixed-rate mortgage or a tracker mortgage. Fixed-rate mortgages are much more popular as they offer the stability of a fixed monthly payment that doesn't change. You'll pay the same interest rate for a set number of years, and it won't change regardless of what happens to the Bank of England's base rate. Generally lenders offer two or five-year fixed-rate mortgages, but terms of three, seven, 10 and even 15 years are also available. At the end of your fixed period, you will need to remortgage. If you don't, you'll be moved to your lender's standard variable rate (SVR), which is usually much more expensive. Meanwhile tracker mortgages "track" the Bank of England's base rate plus a set percentage. Given the base rate is currently 4.25%, if you have a tracker mortgage which is "base rate plus 1%" then your rate will be 5.25%. Your monthly repayments will likely go up if the base rate goes up, but they should also go down. Bear in mind, though, that some tracker mortgages come with a "collar" which means the rate can only fall to a set level. South West: Chard, Somerset - £100,000 5% deposit: £5,000 10% deposit: £10,000 24 24 This three-bedroom house in Chard, Somerset is available for £100,000. Located just off Chard town centre, this three-bedroom Grade II listed property offers ample living space and huge potential for refurbishment. This freehold property boasts three reception rooms, two first-floor bathrooms, and an enclosed rear garden South East: Dover, Kent - £160,000 5% deposit: £8,000 10% deposit: £16,000 24 24 This three-bedroom house in Dover is available for £160,000. This charming three-bedroom home, spread across three floors on Clarendon Street, offers a well-considered layout and ample space for comfortable living. Complete with a low-maintenance garden and a garage at the rear, this property provides ample space and practical living solutions for families or those seeking a comfortable home. This property is move-in ready, although it could benefit from some interior updates. London: Dagenham - £350,000 5% deposit: £17,500 10% deposit: £35,000 24 24 This three-bedroom house in Dagenham is available for £350,000. "Located down a quiet walkway with easy access to amenities, schools, and transport links, this three-bedroom semi-detached house offers a practical and convenient lifestyle. Featuring a spacious living and dining room, a modern kitchen with utility room, a ground-floor W/C, and newly decorated interiors, this property offers comfort and convenience in a desirable location. How to get the best deal on your mortgage IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time. There are several ways to land the best deal. Usually the larger the deposit you have the lower the rate you can get. If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before. Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher. A change to your credit score or a better salary could also help you access better rates. And if you're nearing the end of a fixed deal soon it's worth looking for new deals now. You can lock in current deals sometimes up to six months before your current deal ends. Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost. But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first. To find the best deal use a mortgage comparison tool to see what's available. You can also go to a mortgage broker who can compare a much larger range of deals for you. Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender. You'll also need to factor in fees for the mortgage, though some have no fees at all. You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term. You can use a mortgage calculator to see how much you could borrow. Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file. You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements.
CNA
13 hours ago
- Business
- CNA
New home prices in China rise on policy hope, private survey says
BEIJING: The average price of new homes across 100 cities in China climbed 0.30 per cent in May, suggesting supportive policies could be yielding some effect, according to a private survey released by property researcher China Index Academy on Sunday (Jun 1). The increase was almost double the last month's rate of increase at 0.14 per cent. New home prices have been under pressure even as Chinese policymakers plough in efforts since last year to stabilise the sector with supportive measures, including most recently lowering lending rates to spur real estate purchases. "Overall, the current macro policy support for the property market has been increasing," the real estate research institute said in a report posted on its WeChat account. New home prices in first- and second-tier cities were surveyed rising from a month ago, with Shanghai topping the list of 100 cities. On a year-on-year basis, the average prices for new homes rose faster at 2.56 per cent, versus 2.50 per cent in April. China's statistics bureau will release the official data for home prices on Jun 16. The market continued to see a persistently high volume of listings for second-hand residential units, keeping prices lower in that segment, it said. Prices of second-hand properties fell 0.71 per cent from a month ago, and 7.24 per cent year-on-year. That compared with April's declines of 0.69 per cent and 7.23 per cent, respectively. The property market, accounting for roughly a quarter of economic activity at its peak, is where some 70 per cent of China's household wealth is invested.
Malay Mail
15 hours ago
- Business
- Malay Mail
New home prices climb across China's big cities, boosted by stimulus, survey shows
BEIJING, June 1 — The average price of new homes across 100 cities in China climbed 0.30 per cent in May, suggesting supportive policies could be yielding some effect, according to a private survey released by property researcher China Index Academy today. The increase was almost double the last month's rate of increase at 0.14 per cent. New home prices have been under pressure even as Chinese policymakers plough in efforts since last year to stabilise the sector with supportive measures, including most recently lowering lending rates to spur real estate purchases. 'Overall, the current macro policy support for the property market has been increasing,' the real estate research institute said in a report posted on its WeChat account. New home prices in first- and second-tier cities were surveyed rising from a month ago, with Shanghai topping the list of 100 cities. On a year-on-year basis, the average prices for new homes rose faster at 2.56 per cent, versus 2.50 per cent in April. China's statistics bureau will release the official data for home prices on June 16. The market continued to see a persistently high volume of listings for second-hand residential units, keeping prices lower in that segment, it said. Prices of second-hand properties fell 0.71 per cent from a month ago, and 7.24 per cent year-on-year. That compared with April's declines of 0.69 per cent and 7.23 per cent, respectively. The property market, accounting for roughly a quarter of economic activity at its peak, is where some 70 per cent of China's household wealth is invested. Any signs of relief could help cushion China's economy from the stresses of a yet-unresolved trade war with the United States. — Reuters
Reuters
15 hours ago
- Business
- Reuters
New home prices in China rise on policy hope, private survey says
BEIJING, June 1 (Reuters) - The average price of new homes across 100 cities in China climbed 0.30% in May, suggesting supportive policies could be yielding some effect, according to a private survey released by property researcher China Index Academy on Sunday. The increase was almost double the last month's rate of increase at 0.14%. New home prices have been under pressure even as Chinese policymakers plough in efforts since last year to stabilise the sector with supportive measures, including most recently lowering lending rates to spur real estate purchases. "Overall, the current macro policy support for the property market has been increasing," the real estate research institute said in a report posted on its WeChat account. New home prices in first- and second-tier cities were surveyed rising from a month ago, with Shanghai topping the list of 100 cities. On a year-on-year basis, the average prices for new homes rose faster at 2.56%, versus 2.50% in April. China's statistics bureau will release the official data for home prices on June 16. The market continued to see a persistently high volume of listings for second-hand residential units, keeping prices lower in that segment, it said. Prices of second-hand properties fell 0.71% from a month ago, and 7.24% year-on-year. That compared with April's declines of 0.69% and 7.23%, respectively. The property market, accounting for roughly a quarter of economic activity at its peak, is where some 70% of China's household wealth is invested. Any signs of relief could help cushion China's economy from the stresses of a yet-unresolved trade war with the United States.
