Housing Value Hits New High
The total value of Australia’s housing has grown by more than $200 billion in the past three months to reach $11.6 trillion.
The latest increase means that over the past five years, the total value of property has increased by 60%, according to Australian Bureau of Statistics data. It is now worth more than four times the value of the Australian Stock Exchange.
ABS head of finance statistics, Mish Tan, says property prices are continuing to rise throughout Australia, but despite the quarterly rise in national dwelling values, the pace of growth has slowed.
According to Tan, sentiment in the Australian housing market remains “increasingly upbeat”.
“Average house prices rose 1.4% over the (June) quarter, reaching record highs in NSW, Queensland, South Australia, and Western Australia,” she says.
Tan says of the total value of residential housing, the vast majority ($11.1 trillion) is owned by households.
During the quarter, the number of residential dwellings rose by 53,600 to 11.4 million.
Big Move Is On
More than a quarter of Australians are planning to move within the next 12 months.
The 2025 Muval Index, which analysed over 400,000 moving enquiries and surveyed 2,000 Australians, shows 28% are considering relocating in the coming year.
More than a third are upgrading to a better home, while a similar number are looking to reduce their costs of living.
The data shows the exodus to lifestyle locations also continues, with about a fifth of respondents seeking out a better lifestyle, such as coastal living or a quieter location.
But while coastal towns may be popular, it is the ACT which is the most popular destination for relocators, with 120 moving in for every 100 who leave. Next most popular is Victoria and then Western Australia.
About 16% of respondents say they are moving to find more affordable housing, almost 18% are downsizing and 11% are moving so the family can be closer to better schools.
Spring Auction Action
Spring selling fever has hit the auction market with an almost 15% increase in properties going under the hammer last weekend and an even higher number already scheduled for next week.
According to Cotality figures, there were 2436 properties taken to auction last weekend and 2600 are already scheduled for next week across the combined capital cities.
Despite the higher number of properties on offer, preliminary clearance rates were slightly lower during the first two weeks of spring, although still above 70%.
The clearance rate across the combined capital cities last weekend was 74.8% Cotality economist, Kaytlin Ezzy, says despite that “subtle easing”, the clearance rate is a strong result and higher than the winter average.
Melbourne has had more than 1000 properties offered for auction each week for the past three weeks. It had a clearance rate of 75.2% last week. Adelaide was 75.4%, Sydney, 74.7%, Brisbane, 74% and the ACT was 73.3%.
Parking Spaces Add Value
Properties with a dedicated parking space are achieving top dollar, according to an analysis of how much value parking adds to a home.
According to the Luxo Living analysis, properties in high-traffic suburbs close to capital cities or tourist hotspots with dedicated parking can attract a massive premium.
It analysed property sales in the same location and with similar features, except some had dedicated parking spaces and others did not.
Of the top ten locations where private parking is most coveted, it equated to a difference of between $149,000 and $156,000 in the sale price.
New South Wales has five suburbs in the top ten list of locations where buyers are prepared to pay more to secure a property with a dedicated parking spot.
Newtown, in Sydney’s inner west, topped the list, with the analysis showing it could add up to $156,000 to the price tag.
Luxo Living CEO Winston Tu says parking was once considered a standard feature of a home, but in some locations where land is at a premium, it is now being treated as an upgrade.
“Having a dedicated parking space has moved beyond a convenience and has become a luxury that only those who can afford to pay the extra cost can secure,” he says.
QUOTE OF THE WEEK
REA Group senior economist Angus Moore “Regional areas often carry higher rental yields. And those areas have also seen stronger price growth over the past 12 months, but you could even extend that back to the past five years."
Top Investment Suburbs
Queensland and Western Australia have come out on top in a new report highlighting Australia’s best 200 property investment locations.
Queensland accounts for nearly half of the suburbs on the list (98) while Western Australia has 72. South Australia has 17, New South Wales, 7, Northern Territory, 4, and Victoria, two.
The analysis by REA Group is based on rental yield, 12-month value growth and the number of days on average it takes to tenant a vacant rental property.
REA Group senior economist Angus Moore says regional, or outer suburban, locations are prominent on the list.
“Regional areas often carry higher rental yields. And those areas have also seen stronger price growth over the past 12 months, but you could even extend that back to the past five years,” he says.
He warns investors, though, not to just look at the data, as that can often serve up resource-heavy locations or remote towns. Moore says investors need to factor in the local economy and issues when deciding where to invest.
