Australian Market Update – December 2021

Housing values 1.3% higher in November marking the 14th consecutive month of positive growth. The housing values have increased 22.2% for the year to date, adding an approximate $126,500 to the median value of an Australian home.

Despite the continuation in the rise in values, November has provided an indication a softening of the market since January when values rose 0.9%. It is noted that this is in part due to rising mortgage rates, higher listings, lack of affordability and a tightening of lending restrictions.

As at December 2021, Brisbane and Adelaide are now recording the fastest pace of growth, while in Sydney and Melbourne, there is a noticeable drop-off in its growth. Brisbane values were up 2.9% in November- which is its highest rate since October 2003, while the values in Adelaide rose 2.5%- its highest since February 1993. The stock levels available may also attribute to the rise in values with Adelaide experiencing -32% and Brisbane recording -33.9% growth which is lower than the five year average. Melbourne and Sydney have experienced more normalised stock in recent weeks with Sydney total listings recording -2.6% and Melbourne 7.9% above the five year average.

It is noted that housing overall has continued to outperform units with capital city values increasing 1.2% and 0.7% respectively over the month of November. The difference in values in capital cities are now at an all time high with 37.9% more than capital city units. This is represented in dollar value terms where the average house is worth $240,500 more than a capital city unit. In Sydney, this gap is $523,000.

Regional areas have experienced an accelerated rate of values over the past 3 months with housing values up 2.2% in November with double the monthly rate of capital cities at 1.1%. Regional Tasmania at 2.5% and Regional NSW at 2.4% representing the highest rate of growth in values. Looking further into the regions, Shoalhaven and the Southern Highlands have recorded the highest quarterly growth at 9.7% followed by the Hunter Valley (excluding Newcastle) at 8.9%. Tasmania’s Launceston and North East region is at 7.7%

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