Cooling measures do little to stem property demand as price increases: Realestate.com.au

Cooling measures do little to stem property demand as price increases: Realestate.com.au
Cooling measures do little to stem property demand as price increases: Realestate.com.au

Melbourne and Sydney house prices are forecast to continue rising, despite financial regulators’ attempts to rein in the hot markets.

REA Group has reported buyer demand through realestate.com.au searches was up 26 percent on the same time last year, with increased buyer visits of 37 percent in NSW and 36 percent in Victoria.

REA Group chief economist Nerida Conisbee said APRA’s cooling measures had failed to “stem the skyrocketing prices’’ in Sydney and Melbourne.

She noted buyer demand continues to accelerate across the country.

New South Wales

Continuing to attract high levels of interest. Given the relatively low development of apartments in NSW, it was surprising to see that unit demand weakened in March.

It’s likely that affordability issues are beginning to impact demand in the state.

Victoria

The measures to encourage more first home buyer activity have led to renewed confidence in the market, further accelerating demand.

After Northern Territory, Victoria saw the strongest level of growth in demand over the month of March.

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Cooling measures do little to stem property demand as price increases: Realestate.com.au

In Melbourne, despite concerns about oversupply of apartments, buyer demand remains elevated.

Queensland

A drop in demand for units suggests that high levels of supply, particularly in Brisbane, are having a more negative impact.

On the positive side, the pipeline of new apartments in Brisbane remains low, which will give the market time to absorb current stock.

South Australia

Demand from buyers remains stable in South Australia with apartment demand seeing higher rates of growth than houses.

This perhaps reflects a slowing new development market in Adelaide where a large number of new apartments have now been completed.

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Cooling measures do little to stem property demand as price increases: Realestate.com.au

Tasmania

Continues to be the strongest market in Australia, attracting interest from local buyers, interstate and overseas.

Western Australia

Demand levels continue to decline in Western Australia, however the number of people looking to buy on realestate.com.au is as its highest level since May 2016, with this demand o set by an increase in listings on the index.

Confidence in the market from sellers and buyers appears to be improving, although it is difficult to predict if this will be sustained.

Australian Capital Territory

There was a small decrease in demand in the month of March in Australian Capital Territory, but overall it remains strong with the index seeing a 50% increase year-on-year.

Northern Territory

The market is now showing sustained increases in demand, suggesting that the Northern Territory is on the way back up.

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Cooling measures do little to stem property demand as price increases: Realestate.com.au

Rental demand remains strong, but over-supply is a concern in Queensland.

Demand for rental properties on realestate.com.au hit a record high in March 2017 as rental properties available for lease failed to keep track with the growth in people looking to rent.

New South Wales

Sydney is now the least affordable city for renters in Australia.

Despite high costs, demand from renters remains high and continues to accelerate.

This may be partly to do with buyer unaffordability, but it’s also likely that jobs growth is a factor.

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Cooling measures do little to stem property demand as price increases: Realestate.com.au

Victoria

Surprisingly given the high levels of development in Melbourne, Victoria saw the strongest growth in demand after Australian Capital Territory.

Demand continues to increase for both apartments and houses suggesting that the level of development taking place in this state is being absorbed by the market.

This has been supported by recently released jobs and population growth numbers.

Queensland

Queensland is the country’s most concerning market.

Buyer demand declined slightly over the month, but there was a larger drop in rental demand on realestate.com.au.

Brisbane in particular is seeing high levels of development and dropping rental demand suggests that the market in Queensland will continue to take some time to absorb the supply.

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Cooling measures do little to stem property demand as price increases: Realestate.com.au

South Australia

Rental demand softened slightly in March, likely reflecting a recent high number of new apartment completions.

Given that the pipeline of new development has now slowed, it is likely that this will be a short- term decline.

Tasmania

This state has seen very little development for some time and high rental demand combined with high buyer demand suggests that more new housing could be developed.

Western Australia

Conditions in Western Australian remain challenged with a slight decrease in renter demand in the month of March.

Australian Capital Territory

There was a small decrease in demand in the month of March in Australian Capital Territory, but overall it remains strong with the index seeing a 50% increase year-on-year.

Northern Territory

Demand from renters in Northern Territory is now also seeing sustained demand.

Like the buy market, it’s likely the rental market is on the way up.

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Cooling measures do little to stem property demand as price increases: Realestate.com.au

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