Industry Update – 23 January 2025

Wishing everyone a Happy New Year!

 

Currently in Australia, a growing number of investors are selling their properties, new home demand continues to moderate, there has been a share of sales lifts in the Northern corridor and Melbourne’s median lot price surpasses $400,000.

New research from the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA) has shown that a growing number of investors are selling their properties.

The research suggests that Australia has fallen short by 35,000 investors needed to meet rising tenant demand. Between March 2019 and March 2024, Australia’s population grew by 1.8 million people, requiring an additional 212,000 rental properties to house them. However, only 110,000 new investors entered the market during this period.

The ABC reported that investors have sold off heavily in Victoria, with renal bond data showing that the State lost 24,726 rentals (3.6% of its stock) in the year to September 2024. The investor sell off was more severe in Melbourne which lost 23,108 rentals (4.2% of its stock) in the year to September 2024. 

The rental and price data shows that the investor sell-off has market, positive for Victorian tenants and first home buyers.

 

  • Melbourne rents were down by 0.4% through the second half of 2024 mostly due to a 1.1% fall in unit rents, whilst house rents are unchanged over the past 6 months

 

  • Melbourne home values declines by 2.7% in 2024, making housing cheaper for first home buyers.

 

A fall in investor confidence in Victoria could see first home buyers (FHBs) returning to the market. If interest rates fall in 2025 and the jobs market remains string, the signs are FHBs purchaser sentiment will rebound.

Australia needs fewer property investors – MacroBusiness

 

 

Northern corridor sales growth

The Northern growth corridor had the most notable jump in sales activity with its proportion lifting to 27%. Whereas growth corrdiors in the Southeast, West and Geelong all recorded double digit percentage declines in monthly lost sales. The western growth corrdior maintained its position as the top selling region with 29% of total sales. 

new home demand continues to moderate

Gross lot sales recorded across metropolitan and regional growth areas declined in November by 10% from that in October. However, purchaser sentiment in the new home market was more resilient in 2024 with a 25.1% annual growth in monthly lot sales compared to the same period in 2023.

Melbourne’s median lot prices surpassed the $400,000 mark, 3 years after reaching the $350,000 mark.

November 2024 Victoria Greenfield Market Update – RPM Group

INDUSTRY UPDATE - 16 JANUARY 2025

Share Article

INDUSTRY NEWS

SHARING
KNOWLEDGE & INDUSTRY INSIGHTS