The Avanti Group

Supply and Demand Imbalance Continues to Push Property Values Higher

Despite the continued rate rises over the last twelve months, the property market is on a trajectory of growth.

CoreLogic’s most recent report marks eight months of consecutive expansion, with properties in key cities around Australia seeing exceptional growth.

For those looking to invest or add to their portfolio, it’s exceptional news as it signals that further growth in the property market could be possible.

Let’s take a look at CoreLogic’s latest Home Value Index results.

National Home Value Index Records Growth
CoreLogic’s National Home Value Index (HVI) recorded a growth of 0.8% in September, indicating a sustained recovery trend for the eighth consecutive month. While the pace of growth has been slower than the June quarter due to a rise in advertised stock levels, it’s positive to see the market continuing to see growth across the country.

The top performers for the quarter were Adelaide, Brisbane and Perth, experiencing increases of 4.3%, 3.9% and 3.6% respectively. Hobart experienced a dip of -0.2% over the quarter, marking a new cyclical low for the quarter.

CoreLogic’s research director, Tim Lawless, noted the performance of the housing market in each city reflected the underlying supply dynamic.

“The three capitals recording the highest capital gain each have advertised supply levels that are around 40% below their previous five-year average. Advertised supply levels across Hobart, where values are still trending lower, have been holding at above average levels since June last year and were almost 40% above its five-year average.”

While the national index has recovered by 6.6% since January, home values remain 1.3% below the record highs recorded at the property markets peak in April last year.

“We have already seen dwelling values reach new record highs in Perth and Adelaide. Brisbane looks set to reach a new record high in October, with home values currently only 0.6% below their previous peak. Hobart and Canberra have the furthest to go before staging a nominal recovery, with dwelling values remaining 12.4% and 7.0% below their cyclical highs from last year.”

This is positive news for those purchasing in the Queen’s Wharf development, which is currently under construction with limited apartments available for sale – Learn more about the Queen’s Wharf development here.

Interestingly to note, the premium housing sector, which led the recovery cycle initially, is witnessing a slowdown with a quarterly growth rate of 2.3%.

“This shift is partly attributable to the lower value capitals such as Perth and Adelaide recording a faster rate of growth, however even in these cities it is the lower quartile that has outperformed,” Mr Lawless said.

In Sydney and Melbourne, traditionally expensive markets, the broad middle of the market is now leading the growth, possibly due to renewed affordability challenges driving demand towards the mid-market segment where entry barriers are lower.

Regional markets continue to lag behind their capital city counterparts in comparison, recording a modest 1.1% rise in dwelling values over the September quarter. The softer housing conditions in regional Australia are primarily demand-driven with an estimated home sales number 6.5% lower than a year ago and 9.2% lower relative to the previous five-year average.

Impact on Investors in 2024
The ongoing growth trend indicated by CoreLogic’s Home Value Index bodes well for investors eyeing opportunities in 2024. The substantial capital gains in key cities hint at a favourable environment for those looking to increase their property portfolio, with increased affordability in certain market segments setting the stage for smart investment growth.

Here at The Avanti Group we have over two decades of experience in the Real Estate market, with a range of properties in key investment areas currently available.

If you want to know more about our current Real Estate offerings, get in touch with our team.