Capital City Dwelling Values Shift Higher (Yet Again!)

According to CoreLogic research director Tim Lawless, capital gains remained positive across Australia’s combined capital city housing markets, however, the pace of growth has reduced when compared with previous months, with October dwelling values rising by 0.5%, compared with a 1.0% lift in September and 1.1% rise in August. The latest monthly housing market data takes the quarterly change in capital city dwelling values to 2.7% and 7.5% higher over the past twelve months.

While dwelling values have broadly risen during October, rental yields in Sydney and Melbourne remain depressed, with gross yields are at record lows. The typical Sydney and Melbourne house is now providing a gross rental return of just 2.8%. Taking into consideration holdings costs, expenses and vacancy, the net rental yield for houses is likely to be closer to 2% in these markets. Markets where value growth hasn’t been as strong are seeing healthier yield profiles, with Hobart demonstrating the highest gross rental yields of any capital city.

Mr Lawless said, “High values, low yields and a mature growth cycle haven’t been enough to deter investors from the market. Housing credit data released by the RBA earlier this week provides some insight into increased demand from the investor segment. Over March 2016, investor housing credit grew by just 0.29% and this has consistently increased to 0.62% over September. At the same time, credit growth for owner occupier housing has slowed. After peaking at 0.79% growth in November 2015, owner occupier housing credit growth slowed to 0.49%.”

“While home values are still rising, the rate of growth is slower than it was 12 months ago, however, annual growth remains somewhat heightened, particularly considering this growth phase has now been running for almost four and a half years.

“With ongoing strong value growth and high clearance rates in Sydney and Melbourne, as well debate around affordability gathering some momentum, there is likely to be further caution by the Reserve Bank around future interest rate cuts, which, if it were to occur, may  provide additional stimulus for housing markets around Australia.

Increasing life expectancy for all Australians!

(Pleasingly) life expectancy estimates continue to improve for both males and females!

There are only five other countries worldwide where both males and females have a life expectancy over 80 years. These countries are Iceland, Israel, Italy, Sweden and Switzerland. Australia's life expectancy, for both males and females, is also higher than many similar countries such as Canada, New Zealand, the United Kingdom and the United States of America.

Are Property Club member more successful than the rest?. . . yes!!

Property Club members have continued to benefit from our extensive Research and more, with 5,000+ members in our Millionaires Club!

Property Club members are having a lot of success with Club research assisting them to acquire a residential property portfolio, that will give them more choices in retirement!

Make sure you contact your Property Mentor to assist you to catch the wave as well!

Have a great weekend and catch you next week!

Warm Regards,

Troy Gunasekera National Manager