Arnold
Tash Jayasinghe
CibbuanoAustralia’s Major Cities Property Statistics - First Quarter 2006
July 20th 2006 00:53
Over the next few days I’m going to present a summary of the main real estate market data for all the major cities in Australia and do a bit of a market battle off by hedging different cities against eachother. I’ll compare the market results for the last quarter and also year to help readers see where the latest trends and surges in the Australian property market have been based. The data is all based on a quarterly report released by the Real Estate Institute of Australia. The figures are for the last full quarter’s analysis covering December 2005 to March 2006.
Today the booming Western capital of Perth is going to square off against the party North Eastern capital of Brisbane. Brisbane had a bit of a property boom during the 90s with many city slickers from the southern eastern capitals investing in holiday housing and major developments that were sprouting up throughout Queensland. Unfortunately, many of these sea change developments were fraught with con men and inflated pricing. Many investors lost money with the 90s property boom in Queensland. Has the northern state recovered from the sting or is it still licking its wounds. Perth on the other hand is the new kid on the block. It has become the new boom area of the Australian real estate market.
| % Change | Mar Quarter Median | ||
|---|---|---|---|
| Dec 05 – Mar 06 | Mar 05 – Mar 06 | ||
| House Price | 5.1 | 23.9 | $353,000 |
| House Rent | 6.7 | 20.0 | $240 pw |
| Unit Price | 3.8 | 22.2 | $275,000 |
| Unit Rent | 10.0 | 29.4 | $220 pw |
| Vacancy Rate | 1.4 | -0.2 | -1.2 |
| % Change | Mar Quarter Median | ||
|---|---|---|---|
| Dec 05 – Mar 06 | Mar 05 – Mar 06 | ||
| House Price | 0.5 | 3.0 | $324,000 |
| House Rent | 2.0 | 6.3 | $255 pw |
| Unit Price | -1.4 | 7.5 | $265,500 |
| Unit Rent | 8.7 | 11.1 | $250 pw |
| Vacancy Rate | -0.6 | 0.1 | 1.5 |
Housing prices in Brisbane are cheaper yet are picking up better rental returns than Perth properties. On the growth front, it is clear that Perth is streaks ahead and shining as the new hot market in the Australian property scene. Brisbane residential properties have barely managed to maintain their value over the course of the past quarter and better return can be obtained from sticking your money in an ING account for the period of a year. Now that is really saying something about a slowing market. Rentals in Brisbane are remaining steady compared to Perth where landlords are on average pulling in an additional on fifth profit from the weekly rental payments compared those nabbed 12 months ago.
Unit prices display a similar trend with Brisbane unit values actually losing value over the last quarter. Unit rental returns are a little healthier in Brisbane with weekly rental values increasing over 10 percent over the course of the year. Of course, Perth is still far out performing increase in value by almost one third. It also seems like Perth landlords are having an easier job of tenanting their properties with vacancy rates in the negative figures. Brisbane has relatively low vacancies too.
When comparing values, Perth prices are fetching $30,000 more for houses and $10,000 for units. Yet, weekly rentals are down in Perth compared to Brisbane. This indicates that the rentals for the Western capital are disproportionate compared to Brisbane. In this sense, it is reasonable that Perth’s rental prices are accelerating at a greater rate than the purchase price for a house or unit.
The figures suggest that the market in Brisbane has certainly cooled and is holding at an equilibrium point. Perth on the other hand is showing rapid growth over the last 12 months with a dramatic correction occurring during last quarter’s results. Growth rates have halved during the final 3 months of the past 12 month’s data.
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