Welcome to the July 2021 property market update. Outlined below is a compilation of data sets which provide insight into how the market has performed to date, and also indicators for where the market is heading.
REA Buyer Demand – 30 June 2021
The level of buyer demand is now just 8% below the historic-peak recorded in mid-February this year.
Buyer demand increased the most in Tasmania and New South Wales, despite ongoing lockdowns, with falls in Victoria following strong increases over past weeks.
Demand for units has increased the most in the past year, by almost 10%, with demand for houses broadly flat.
REA Rental Demand – 30 June 2021
COVID-19 restrictions in New South Wales appeared to have little effect on rental demand, which increased 1.1% in the week. Rental demand fell elsewhere, notably by 2.5% in Victoria, but follows strong gains in recent weeks.
Aggregate rental demand is almost 10% below levels a year ago, when rental demand boomed as the country emerged from national lockdowns and Australians returned from overseas.
While rental demand remains around 20% below the peak recorded in January this year, the level of demand remains more than 25% higher than the average over 2019, before the pandemic.
This is surprising given that foreign students – traditionally a strong source of rental demand in inner-cities – remain unable to enter the country.
It shows many Australians are still reassessing where, and what size, home to live in following the ongoing pandemic.
Reserve Bank Market Tracking
Included below is information tracked by the RBA and used for the monthly meetings where interest rates / cash rates are decided.
For the month ending 30 June :
• Nationally dwelling prices are trending up and 7% off the past peak of 2010.
• Home lending still outstripping investors by 20%.
SQM Research – Asking Prices
RP Data / Core Logic Monthly Update
This information is also used by the RBA for further property market insights. Note that the data is approximately six weeks old – for example, the 1 July report, charts market performance ruled off at 31 May.
Data compiled by The Property Frontline.