• Property Market Update June 2018

    Property Market Update June 2018

    Taking that next step on the property ladder is something many home owners think about at some stage – whether that’s moving from an apartment to a house, upsizing your current house or buying an investment property.

    It can be a daunting step, especially in a booming market where the next step is further away than you’d like it to be. But what about when markets cool off, as they have recently?

    For the first time since October 2012, we’ve just had 12 months of negative growth in the Australian property market1.

    Dwelling prices in our combined capital cities fell by 1.6% in the year to 30 June. While this was primarily driven by the poor performance of Sydney (-4.5%) and Perth (-2.1%), a weak June quarter for Melbourne (-1.4%) also contributed1.

    With our two biggest cities slowing down, this may be an opportunity to think about your next move in more ‘normal’ conditions – with less buyer competition and more reasonable prices.

    Do you need a home with more space? Is your ideal suburb now more affordable? Can you invest in your current home through renovation instead, potentially using the equity in your home to take advantage of low interest rates?

    Whatever your property goals, it’s worth remembering that property is a long-term investment. So while negative growth may not be what most home owners want to hear, it’s a natural part of the market cycle that can provide great opportunities for astute buyers.

    Median dwelling (house/unit) prices at 30 June 20181

    City Median dwelling price (house and units) Capital growth last 12 months
    Sydney $870,554 -4.5%
    Melbourne  $716,774 1.0%
    Brisbane $495,242 1.1%
    Adelaide $439,215 1.1%
    Perth $461,149 -2.1%
    Darwin $433,309 -7.7%
    Hobart $436,899 12.7%
    Canberra $587,867 2.3%
    Combined capitals $654,366 -1.6%

    1CoreLogic Home Value Index, 2 July 2018

     

     

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    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.