Daily Buzz: Wednesday, 4 July
By
PropertyBuzz, your daily dose of property news.
What will happen to home prices under another cash rate rise; NSW’s homebuilding pattern book takes an exciting step forward; and capital city rents trend in a promising direction for renters.
Welcome to Property Buzz! I’m Juliet Helmke. Today is Thursday, 4 July.
.- Home prices reached new highs in 2024 despite 13 rate rises since May 2022, but high inflation of 4.4 pre cent in May 2024 has sparked speculation that another might be on the cards.
– CoreLogic’s head of research, Eliza Owen, noted that while another rate increase was far from certain, the RBA had not ruled out the possibility, and the result would be felt in the market with demand already starting to wane thanks to household financial pressures
– The firm reported that Another 25 basis point rise in the cash rate in August would take monthly repayments on the current median dwelling value to over $4,000 per month, putting the prospect of buying out of reach for some who were currently active in the market.
– And even without another rate rise, Owen said that vendors and the real estate industry should prepare for changing market conditions ahead as economic conditions become weaker and affordability constraints play out.
– In New South Wales, the government has taken the next step in creating a pattern book for homebuilding in Sydney, which would provide accessible designs pre-approved for development in the city.
-In this latest development, a global competition is sourcing designs from architects to contribute to the pattern book, with the government stating its looking for plans that are liveable, buildable, replicable, cost-effective, sustainable, and meet the needs of the industry and local communities
– Submissions are now open, with the winners to be announced in November.
– And for the first time in years, quarterly rent prices have fallen, stalled or substantially weakened in growth in several Australian capital cities, including Sydney, Melbourne, Brisbane, Adelaide, Canberra, and Perth, according to data from Domain.
– The slowdown in rental price growth is due to a number of factors, including a reduction in demand with renters transitioning into homeownership thanks to support from first-home buyer schemes.
– Declining overseas migration is also easing rental demand, leading to increased rental availability and a rebalancing of supply and demand pressures.
That’s Property Buzz for today.
See you again tomorrow, 05 July, for your daily dose of Property Buzz.
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