Weekly Real Estate Insights
Weekly Real Estate Insights
Among the key highlights this week is a lead article from Ray White's own Chief Economist, Nerida Conisbee. Her report provides an in-depth look at changing market conditions across Australia, focusing on the latest annualised growth rates for each capital city. This, combined with other valuable insights, makes for an informative roundup of current market trends.
House Price Growth Slowing
Nerida Conisbee’s report, titled “House Price Growth Slowing,” highlights a two-speed housing market across Australia as we approach the end of 2024. While housing price growth is slowing nationwide, different cities are experiencing vastly different conditions.
Cooling Markets: Sydney, Canberra, Melbourne, and Hobart have seen growth slow to an average of 2.9% over the past 12 months, significantly lower than the 6.7% peak in early 2024.
Sydney: Interest rate hikes are impacting the premium market, while more affordable properties still show moderate growth.
Canberra: A robust housing supply is stabilising prices, reflecting the ACT Government’s efforts to maintain affordability.
Melbourne: Economic challenges and high property taxes are suppressing growth despite strong migration.
Hobart: Limited population growth and declining interstate migration weigh heavily on the market.
Resilient Markets: Perth, Adelaide, and Brisbane continue to outperform with annual growth rates averaging 13.2%, albeit lower than the 18.9% peak in May 2024.
Brisbane and South-East Queensland: Strong migration and limited housing supply are driving demand.
Perth: Rising construction costs and population growth are maintaining market strength despite softening in the mining sector.
Adelaide: Benefits from strong government leadership, mining sector growth, and affordability are attracting buyers and investors.
Looking ahead to 2025, these regional differences will remain crucial as the market transitions into a lower interest rate environment.
Tom Panos Market Wrap
One of Australia’s most influential real estate voices, Tom Panos, shared his latest market insights this week. His message is clear: buyer interest is cooling, and many sellers are holding out for higher offers in the new year. Tom’s Saturday Market Wrap is essential viewing for anyone navigating the current property market. Watch it here.
The Costs of Buying Property on the Gold Coast
Buying a property involves more than just the purchase price and interest rate. Here’s a breakdown of additional costs Gold Coast buyers should consider:
Pre-Purchase Costs:
Building and Pest Inspections: Essential for detecting termites and moisture issues, costing $400-700.
Conveyancing Fees: Range from $800-2,000, depending on the property’s complexity.
Loan Application Fees: Often hidden, these can total $600-1,000.
Settlement Period Expenses:
Transfer Duty (Stamp Duty): On a $750,000 property, expect around $20,000, though concessions exist for first-home buyers.
Council and Water Rates: These are adjusted at settlement and vary across suburbs.
Body Corporate Fees: Significant for apartments, ranging from $2,000 to over $10,000 annually.
Post-Settlement Costs:
Property Insurance: Crucial, especially for coastal properties, which carry higher premiums.
Moving Costs: Local moves cost $500-1,500, while interstate relocations can exceed $3,000.
Immediate Repairs or Updates: Budget at least 1% of the property’s purchase price for initial improvements.
Key Takeaways
This week’s updates underscore the importance of understanding regional market trends and budgeting for hidden costs when buying or selling property. Whether you’re a buyer, seller, or investor, these insights provide a roadmap to navigate the current real estate landscape effectively.