The growth in the Australian Property Market just keeps on going as Australian housing values increased a further 1.6% in July and now sit at 14.1% higher over the first seven months of the year and a whopping 16.1% higher over the past 12 months and is the fastest pace of annual growth since February 2004.
Demand is being stocked by record low mortgage rates and the fact that those will remain low for an extended period of time.
There is a significant mismatch between supply and demand, with dwelling sales about 40 percent above the five-year average while active listings remain at 26 percent below the five-year average. As a result the expectation is that the upward trend of housing values will continue to happen.
With Melbourne’s 1.3 percent growth in July, now all Australian capital cities are in double digit growth over the past 12 months with Darwin leading the pack with a growth of 23.4 percent.
If we were to look at house values only there are 3 capital cities with a growth rate of in the 23 percent: Darwin, Canberra and Sydney.
The rental markets remain tight, with the annual pace of growth in national rents lifting to 7.7 percent, which is the fastest rental appreciation since 2008. It was again Darwin taking home Gold with an annual increase in rents of 22.7 percent for houses and 20.3 percent for units.
Looking ahead, all indicators are pointing towards a very healthy continuous growth in the property market.
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