CORELOGIC RPDATA NAB AUSTRALIAN HOUSING MARKET REPORT JULY 2015
Rental Vacancy Rates
Figures from SQM Research show that the national vacancy rate rose to 2.4 per cent, based on 71,970 vacancies during the month of May.
This was up from the April figures of 2.3 per cent based on 69,295 vacancies.
Vacancy rates were up in all capital city markets except for Sydney, Canberra and Darwin where rates were unchanged.
Darwin’s vacancy rate of 3.5 per cent remains the highest in the country.
Perth saw the biggest month to month increase, with its vacancy rate rising from 3 per cent to 3.4 per cent.
Adelaide also saw a monthly increase, as rates went from 1.7 per cent to 1.9 per cent.
Melbourne, Brisbane and Hobart all saw their vacancy rates record a .1 per cent monthly increase.
Year-on-year figures show that Canberra, Melbourne and Hobart vacancy rates dropped in the 12 months to April, with Canberra recording the biggest fall with a decrease of 0.4 per cent.
Hobart saw its rates drop from 1.8 per cent to 1.5 per cent over the period which means it now has the lowest vacancy rate in the country.
Darwin saw the most significant increase over the 12 month period, with vacancy rates up 2.1 per cent since May 2014.
Darwin also saw the most significant changes in terms of asking rents over the 12-month period, with a 13.5 per cent decrease for houses and a 5.7 per cent drop for units.
Across all the capital cities, asking rents increased by an average of 1.3 per cent while units increased by an average of 0.5 per cent.
Balance Between Buyers and Sellers
According to the Commonwealth Bank-CoreLogic RP Data Home Buyers Index (HBI) April 2015, the three months to April saw a balancing in the market between buyers and sellers.
The HBI is based on the ratio of properties for sale compared to the number of housing loans being issued by the Commonwealth Bank, Australia’s largest mortgage lender.
In locations where the number of properties being advertised for sale outweighs the number of mortgage commitments, the market is said to be in favour of buyers.
Where the number of mortgage commitments outweighs sales advertisements, the market is said to be in favour of sellers.
According to the report “stock levels are generally in line with the number of home loans funded, suggesting that current market conditions, at least at a national level, are balanced.”
Report on Renting
A Nielsen report from Domain.com.au has revealed that the Northern Territory has the highest percentage of renters in the country (43 per cent), followed by Queensland (37 per cent).
The percentage of people renting in Sydney and Melbourne is significantly lower, with more renters in New South Wales (33 per cent) than in Victoria (28 per cent).
Tasmania has the lowest percentage of renters in the country, with just a fifth (20 per cent) of the state currently renting.
The “great Australian dream” of homeownership is seemingly distant for some states, with 62 per cent of NT residents indicating they believe that owning their own home is no longer attainable.
More than half (51 per cent) of NSW and Vic (52 per cent) residents are also negative about the attainability of property ownership.
Domain senior economist Andrew Wilson says the high number of renters in the NT reflects low homeownership rates.
“High housing costs in the NT remain a significant barrier to home ownership resulting in the highest proportion of renters to total households of all Australian states.
“Darwin house prices are behind only Sydney of all the state capitals, and although Territory incomes are among the country’s highest, local rents are clearly the highest, providing another significant barrier to home ownership for those saving for a deposit.
“That said, the number of recent new developments in the NT means we may see a shift in the future. Supply is slowly catching up to demand and we may see a gradual increase in the rate of homeownership.”
Housing Industry Association (HIA) New Home Sales Report
“New homes sales have increased in each of the first four months of 2015,” HIA chief economist Harley Dale says.
“While the rise of 0.6 per cent in April was the slowest growth pace of the four months, this is still a strong result off the back of a healthy March quarter.”
“The profile for new home sales in 2015 is consistent with a new home building cycle, where further upward momentum resides largely in the ‘multi-unit’ sector and where the eastern seaboard states are driving the further growth,” Dale says.
“The two states to post gains in detached house sales over the three months to April 2015 were NSW and Victoria,” Dale adds.
In April 2015, private detached house sales increased by 7.2 per cent in NSW, by 2.7 per cent in Victoria, and by 0.9 per cent in Western Australia. Private detached house sales dropped by 9.0 per cent in Queensland and were down by 1.9 per cent in South Australia.