Australia’s housing market momentum accelerated in August as demand from a growing population swamped new supply and outweighed the impact of the Reserve Bank of Australia’s (RBA) aggressive policy tightening campaign.
Australian capital-city house prices rose +1.0% in August 2023, marking a marginal acceleration relative to the month prior. In levels terms, capital-city prices are now 6.0% above their recent trough and only -4.3% below their peak in early 2022. That said, rental growth looks to be decelerating. Key numbers: CoreLogic Capital City Dwelling Prices (8-city), August: +1.0% month on month (mom), +3.1% quarter on quarter, -0.1% year on year (yoy).
Regionally, price growth accelerated in Sydney (+1.1% mom), Brisbane (+1.5% mom) and Melbourne (+0.5% mom), but eased in Perth and Adelaide.
On sales activity, CoreLogic highlighted that “lower than average advertised supply levels remain a key factor supporting upward pressure on home values. Although the flow of new listings has lifted through winter, total advertised supply levels remain 15.5% lower than a year ago across the combined capitals.”
On the rental market, CoreLogic noted national rental growth eased to +0.5% mom in August from +0.6% mom in July, marking the smallest increase since November 2020. That said, annual rent growth remained elevated at +9.0% yoy.
Source: CoreLogic, Goldman Sachs
Disclaimer: Clime Asset Management Pty Limited | AFSL 221146 | ABN 72 098 420 770. The information provided in this post is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information contained therein. Please consider the relevant disclosure document/s before investing in one of our products. Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Investors risk losing some or all of their capital invested. Past performance of financial products is not a reliable indicator of future performance or returns.
