Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

Deterioration in Australian market conditions, says new research

By Eliot Hastie
10 May 2018 | 1 minute read
australia850

Leading indicators in the Australian property market have forced a downgrade in the property forecast for 2018, says new data.

SQM Research has revised its forecast due to falling prices in Sydney and Melbourne as well as auction clearance rates, total property listings and asking prices in all five capital cities.

The revision affects five of the capital cities in Australia and has therefore affected the national forecast, which now sits at -2 per cent to +2 per cent.

Advertisement
Advertisement

Recent auction results suggest that the Sydney market activity has deteriorated during April, recent rates have ranged from low to mid 50 per cent, which historically have translated into price falls.

However, Sydney’s Inner West, Lower North Shore and eastern suburb markets are recording higher clearance rates of above 60 per cent, which suggests the top end of the residential market is holding.

Regardless, SQM Research believes that Sydney will now record a decline or at best small gains, changing the forecast from up to +8 per cent to sitting between -4 per cent to 0 per cent.

Melbourne went from an optimistic forecast of up to +12 per cent growth, but that has been revised to hover between -3 per cent and +1 per cent.

Like Sydney, lower auction rates of between 50 per cent and 60 per cent have been recorded in Melbourne, which signals a weaker condition for the city.

Of the downgraded cities, Canberra and Brisbane are the most optimistic, with both anticipating growth of up to +4 per cent and +3 per cent, respectively.

Brisbane has experienced a surplus in apartment stock, but with building approvals falling, it is expected to reach equilibrium within the year.

Canberra had very strong market conditions in 2017, but so far this year, asking prices have not risen and the growth of the city is predicted to slow down now.

Due to rises in vacancy rates, which was unexpected by SQM, Darwin has been downgraded to -5 per cent to 0 per cent, with fears that the housing market in the city has not yet bottomed out.

Perth, Adelaide and Hobart all remained unchanged.

Despite the downgrades for the country, SQM Research does not expect a general housing price crash to occur this year.

The conditions required for a downturn are not in the market due to a healthy economy, relatively low unemployment, population growth and only isolated oversupply of new real estate.

Deterioration in Australian market conditions, says new research
australia850
lawyersweekly logo
Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.