Australian Real Estate Market Overview: June Quarter 2024
The Real Estate Market Facts Report for the June Quarter 2024 by the Real Estate Institute of Australia (REIA) highlights key trends in the Australian residential housing market, showcasing continued growth in property prices, tight rental markets, and investor activity.
Property Price Growth
In the June 2024 quarter, property prices in Australia experienced significant growth. The national median price for houses increased by 1.5%, reaching $1,049,136, with notable increases in cities like Perth (6.5%) and Brisbane (3.5%). Conversely, Melbourne and Canberra saw declines of 1.5% and 2.5%, respectively. Perth had the highest annual increase at 26.7%, while Darwin continued to have the lowest median price at $567,000.
For other dwellings, the national median price grew by 1.1%, bringing it to $675,133. Hobart led the way with a 9.0% quarterly increase, while Sydney, Melbourne, and Darwin saw price declines. Over the past year, Brisbane and Perth recorded the largest annual increases at 21.2% and 21.3%, respectively.
Rental Market and Vacancy Rates
Rents across the nation continued to rise, particularly for three-bedroom houses, where the national median rent increased by 1.5% to $611 per week. Brisbane, Adelaide, and Perth saw the highest quarterly increases, while Melbourne and Hobart experienced declines. In terms of other dwellings, median rents for two-bedroom units decreased by 0.5%, with declines in cities like Melbourne and Canberra.
Vacancy rates remained tight, with most capital cities recording rates well below the industry benchmark of 3.0%. Perth had the tightest rental market with a vacancy rate of 0.5%, while Darwin had the highest at 3.7%. The national weighted average vacancy rate was 1.6%, reflecting strong demand for rental accommodation.
Investment Market
Investment in residential properties remained robust, with lending to investors comprising 37.9% of all finance for household property purchases. Investor activity was particularly strong in cities like Perth and Brisbane, where high annual returns and rental yields were reported. Sydney had the lowest annual rental yield at 1.8%, while Darwin had the highest at 4.7%.
Market Outlook
The report underscores that the current trends in property price growth and tight rental markets are unlikely to reverse without significant changes in housing supply and regulatory interventions. With the upcoming federal election in mind, the REIA stresses the importance of addressing housing affordability and availability as critical issues.
In summary, the Australian real estate market in the June quarter of 2024 saw continued upward pressure on property prices and rents, driven by strong investor activity and limited housing supply, particularly in major cities like Perth and Brisbane.
Reference: The information in this report is based on data from the Real Estate Market Facts Report for the June Quarter 2024 by the Real Estate Institute of Australia (REIA)