February recorded the strongest rise since October 2023 across the national housing market with an increase of 0.6%. With the exception of Hobart at fall of 0.3%, the rest of the country recorded an uplift in values. It has been noted that the robust housing market is buoyed by an imbalance between supply and demand across the country.
Source: Corelogic
The capital which has recorded the highest growth is that of Perth with a rise of 1.8% over the month of February. Adelaide and Brisbane recorded an increase of 1.1% and 0.9% respectfully with Regional SA, QLD and WA recording a consistent high rate of capital growth.
On the other hand, the markets of both Sydney and Melbourne have recorded modest increases of 0.1% over the month with a positive trend in consumer confidence. This is supplemented by the fact that the auction clearance rates averaged nearly 70%. The overall shortage of housing stock has put upward pressure on values.
When it comes to rental values, there has been a continuation of the growth seen throughout that of 2023 with a rise of 0.9% over the month of February. However, it must be noted that this is possibly a result of a seasonal trend as rentals generally pick-up over the course of the first three months of the year.
Since October 2023, the rise in rentals in the housing market has trended higher when compared with the units market. The unit market reached a peak within the first quarter of last year and has since declined slightly possible due to issues relating to affordability. However, in opposition to the aforementioned affordability issues, there is still an issue with supply which continues to put pressure on rental prices increasing.