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November Property Outlook

The traditionally hot spring selling season got off to a fairly subdued start in September. Find out how your capital city is looking for the final months of the year.


The traditionally hot spring selling season got off to a fairly subdued start in September – with property values climbing just 0.1 per cent across the combined capital cities.

But while dwelling growth was sluggish in September, auction clearance rates remain as strong as ever, with research conducted by Domain showing the national auction clearance rate throughout September was 73 per cent.

Moving forward, it is likely that while auction activity will remain strong, dwelling value growth will remain relatively flat.

If property value growth slows slightly, it may help more owner-occupied buyers to get their foot onto the property ladder.

Further owner occupiers are being helped by the fact that interest rates continue to hover around historically low levels.   

But while now is still a good time to buy – with lenders competing aggressively for business and interest rates hovering around 50 years lows – it is important for potential buyers to do their due diligence and make sure purchasing property is the best financial move for them before they dive into the market with both feet.

Regardless of whether you are in the market for a home or an investment property, ask yourself:

  • Do you know where you want to buy? Do you have an area or suburb in mind that you would like to purchase in and do you know how that area is performing at present in terms of property value growth, rental yields and total gross returns? If the answer is no, speak to your local mortgage broker, they will be able to provide you with a statistical snapshot of the area where you are looking to buy.
  • Do you know how you are going to fund the property? Will you be using equity from another property, or have you saved a sizeable deposit? Perhaps your parents are going to go guarantor on your loan? If you are not quite sure how to fund your property purchase and structure your loan, it is a good idea to speak to a professional.
  • What do you plan to do with your property? Will you live in your property or rent it out? Perhaps you will look to live in it for a few years and then turn it into an investment property? Knowing exactly what you want to do with your property, will help you determine which loan and loan structure will be most suitable.
  • Do you know what the property market is like at the moment? When buying property, it is good to know a little bit about the entire property market and what is happening in each of the capital cities. Having this information, will help to show you whether or not now is a good time to buy and whether or not you should be purchasing in one area over another.

Here is a snapshot of what is happening in each of the major capital cities at the moment:

Sydney:

  • Median dwelling price: $655,000
  • Gross rental yield houses: 3.6%
  • Gross rental yields units: 4.5%
  • Dwelling value growth YOY: 14.3%

Melbourne:

  • Median dwelling price: $535,000
  • Gross rental yield houses: 3.3%
  • Gross rental yields units: 4.2%
  • Dwelling value growth YOY: 8.1%

Brisbane:

  • Median dwelling price: $440,000
  • Gross rental yield houses: 4.5%
  • Gross rental yields units: 5.4%
  • Dwelling value growth YOY: 6.4%

Adelaide:

  • Median dwelling price: $390,000
  • Gross rental yield houses: 4.2%
  • Gross rental yields units: 4.7%
  • Dwelling value growth YOY: 5.8%

Perth:

  • Median dwelling price: $515,000
  • Gross rental yield houses: 4.1%
  • Gross rental yields units: 4.6%
  • Dwelling value growth YOY: 3.2%

Hobart:

  • Median dwelling price: $300,000
  • Gross rental yield houses: 5.2%
  • Gross rental yields units: 5.1%
  • Dwelling value growth YOY: 4.6%

Darwin:

  • Median dwelling price: $545,000
  • Gross rental yield houses: 5.9%
  • Gross rental yields units: 6.0%
  • Dwelling value growth YOY: 7.1%
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