Changes in Australian Property Values
29th May, 2017
Capital City Property Values
According to figures recently released by Corelogic for the 12 months ending April 2017, Australia’s property values continues to rise, by an overall total of 11.7%. The biggest increases were in Sydney and Melbourne, with Sydney recording a 16% rise, and Melbourne a 15.3% rise. Darwin and Perth were the only two capital cities to suffer property value drops:
- Perth: -6.0%
- Darwin: -2.3%
- Brisbane: 1%
- Adelaide: 2%
- Canberra: 8.4%
- Hobart: 13.6%
- Melbourne: 15.3%
- Sydney: 16%
- Combined capitals: 11.2%
With rising property values, rents also increase, which can have a huge effect on employee rental allowances. Having access to timely rental property market data is therefore vital for relocation and human resources managers—this is where Kent can help.
Mining Town Property Values
The property prices in most mining towns have dropped significantly over the recent years. With commodity prices falling and mines reducing their workforces, the demand for housing in mining towns has all but dried up.
However, more recently, many of the affected mining towns have experienced increased demand for housing. This has bolstered the property market, and put a stop to the drastic fall of house prices. Many anxious owners are starting to consider if the worst of the price falls are now in the past.
According to Corelogic, since rental yields are influenced by supply and demand, we can expect a similar trend in the rental markets for properties in these areas. In the examples below, sales have fallen significantly over the past few years and rental yields have followed. As each of the markets below shows signs of recovery, it is likely that rents will increase but it is however unlikely to increase substantial enough to drive prices as high as they were in the peak of 2010-2013.
Gladstone
- Median house price of $323,875
- Sales volumes are 68% lower than their July 2007 peak
- Median prices are 32% lower than their September 2012 peak.
Mackay
- Median house price of $335,000
- Sales volumes are 63% lower than their April 2004 peak
- Median prices are 23% lower than their June 2013 peak.
Port Hedland
- Median house price of $300,000
- Sales volumes are 49% lower than their July 2006 peak
- Median prices are 67% lower than their June 2013 peak.
Karratha
- Median house price of $285,000
- Sales volumes are 44% lower than their March 2005 peak
- Median prices are 65% lower than their October 2010 peak.
This property value snapshot has been created to assist our clients in making informed relocation decisions. We believe that accurate, actionable property data enables our clients to make informed decisions that cater to the housing requirements of their employees, whilst simultaneously ensuring financial best practice.
