Daily Buzz: Friday, 24 May
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PropertyBuzz, your daily dose of property news.
Why international interest in Australian rentals is waning, new listings record a rise, and buyer positivity rebounds
Welcome to Property Buzz! I’m Sebastian Holloman.
Today is Friday, 24th of May. PropTrack’s May 2024 report has shown a 2.3 per cent decline in overseas rental searches compared to April 2023, with the US experiencing the largest drop at -10 per cent.
– This decline has been attributed to fewer visa approvals, particularly for international students, due to stricter government policies aimed at maintaining sustainable migration levels.
– PropTrack’s senior data analyst, Karen Dellow, warns that if Australia continues to tighten immigration policies, overseas renters may shift their focus to more welcoming countries.
– Despite the decline in rental searches, buyer interest recorded a slight uptick, increasing by 0.8 per cent compared to 2023. The Gold Coast and Melbourne were the most popular destinations eyed off by prospective overseas buyers.
-Over to listing volumes now, and Australia’s real estate industry is experiencing an unusual increase in new listings during the cooler winter months, with just over 38,000 properties freshly advertised in the past four weeks.
– This increase in activity is attributed to sellers who had been holding back during the early phase of the rate hiking cycle, financial pressure in the high interest rate environment, and vendors looking to cash in after a significant growth in values.
– Melbourne and regional Victoria are leading the surge in new listings, with increases of 34.8 per cent and 39.4 per cent respectively over last year, partly due to tax changes pushing investors to sell.
– And looking at buyer habits, the Westpac-Melbourne Institute Consumer Sentiment Index showed that the ‘time to buy a dwelling index’ experienced a slight increase of 1.6 per cent to 76.5 basis points in May, indicating a positive shift in potential home buyers’ attitudes.
– Despite the increase, buyer sentiment still remains “deeply pessimistic”, with the index still well below the neutral level of 100 and the historical average of 121.
– The Mortgage Rate Expectations Index increased by 8.3 percent to 133 basis points in May, suggesting the recent federal budget has eased inflation and rate rise concerns.
– Westpac Group senior economist Matthew Hassan predicts the RBA will leave the cash rate unchanged in the upcoming June meeting, due to the continued weak consumer environment.
That’s Property Buzz for today.
See you again tomorrow, 25 May, for your daily dose of Property Buzz.
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