PropertyBuzz, your daily dose of property news.
Unveiling Australia’s hottest rental suburbs; a super Saturday on the cards for auctions; and which unstoppable property price driver is dominating in 2023.
Welcome to Property Buzz, I’m Grace Ormsby. Today is Tuesday the 24th of October, and our biggest headline is Australia’s hottest rental suburbs. Perth WA is dominating PropTracks ranking of the most sought-after suburbs by tenants, with 90% of the top 10 located in the city. Bentley, a suburb in Perth’s south, is leading the list with 160 rental enquiries per listing, with other popular suburbs including Tuat Hill, Lath Lane and Bolga. The high demand is coming amid a national rental crisis, where Australia’s residential vacancy rate is sitting at a record low of 1.1% in the three months to September 2023. Perth’s vacancy rate sat at the lowest at 0.5%. Conversely, demand is falling in some Australian suburbs, notably Cold Falls in Queensland, Melbourne in the ACT and Chain Valley Bay in Greater Sydney, each experiencing a 77% drop in demand.
In other news, Australia’s property market is gearing up for a super Saturday. Nearly 3,000 homes are set for auction this weekend, making it the busiest week for auctions in more than 18 months. Looking back at the week that was, the national average clearance rate increased to 70.8%, a jump from the 60% success rate seen just one year ago. Melbourne had the most active market with 1,100 auctions, but vendor success was lukewarm, reporting a 62% clearance rate over the weekend. Nearly 900 auctions took place in Sydney, reporting a strong 74% clearance rate, and increased activity was also seen across places such as Adelaide.
In other news, Dr Peng-Yu Wong, a senior lecturer at RMIT, states supply shortages are the main driver of Australia’s strong property prices in 2023. Despite a downturn between April 2022 and February 2023 due to rising interest rates, property prices have recovered around half of their lost value, and defying expectations of a downturn. While various factors have influenced property prices, the key driver at the moment is the shortage in supply, with more than 106,000 dwellings needing to be built over the next five years that will not be built. To overcome this, the professor says we need to get rid of those long-term planning delays and reduce non-productive bureaucracy delays. That is all we have time for today. See you again tomorrow, 25th of October, for your Daily Dose of Property Buzz.