Herron Todd White Property Clock May 2024

Herron Todd White Property Clock May 2024

• Posted By Chris Nicholson

Herron Todd White (HTW) is the leading property valuers in the country. Each month they release a monthly update and property clock. This gives a fair idea as to what to expect from the property market in the coming months.

When looking for a reliable insight into the property market, HTW gives an unbiased review of the current state of the market and what to expect in the coming months. After all they are the finance valuers that determine if people get finance or not.

Here is the latest property clock and the Meridien view on what is happening in Australia’s property market. It has been long expected that some markets will decline but no one knew just how long this property boom would last, but as evident below it is clear that some markets are beginning to slow.

Victoria

In Melbourne’s CBD, the median unit price is $526,000 according to the REIV. Despite the excellent public transport accessibility, living more centrally comes at a premium. Units around this price are typically two bedrooms, one bathroom, and possibly one car spot, often located towards the northern end of the city, near Carlton.

For instance, a property listed for $535,000 features two bedrooms and one bathroom with modern finishes. It includes premium amenities such as a gym and courtyard. A key advantage for Melbourne CBD property owners is the high rental income. The median rent is $600 per week, a 20 percent premium compared to the metropolitan Melbourne average of $500 per week.

However, for those seeking property price growth while occupying, purchasing in the CBD might not be the best investment, as apartments and units typically do not appreciate as much as properties with land. REIV data indicates that most buyers in Melbourne’s CBD are investors. Therefore, purchasing in this area may be more beneficial for investment purposes, given the attractive rental yields.

 

Queensland

Our city is certainly thriving on the property front as the year progresses, with robust demand and tight listings. For properties with strong fundamentals, we've seen spirited sales results. Brisbane ranks among the top three locations for growth across all capital cities.

However, this growth presents challenges for buyers. Rapidly rising markets necessitate larger deposits and quick action when finding a suitable home. CoreLogic’s Hedonic Home Value Index indicates Brisbane’s median price is currently $827,822. This places it below Sydney and Canberra, but above Melbourne—a notable shift as Melbourne historically had a higher median.

This median value covers all dwelling types, with houses generally above and units below this figure. It also encompasses a range of property qualities, sizes, and conditions. Therefore, properties are available both below and above the median, depending on the compromises a buyer is willing to make.

 

Western Australia

The Perth residential property market continued to demonstrate strength and resilience. Demand remained robust, with active listings at near-record lows, indicating a highly competitive environment. The median house price stood at $600,000, reflecting steady growth, while the median unit price, though increasing more modestly, showed signs of upward pressure due to heightened activity and reduced time on the market. The rental market was notably tight, with vacancy rates in the metro area at just 0.7 percent. This scarcity allowed landlords to raise rents, enhancing the attractiveness of investment properties.

Interest from buyers in the eastern states was significant, particularly in Perth’s more affordable outer suburbs, where strong rental yields were reported. High net migration continued to drive demand, exacerbating the housing shortfall. Despite an uptick in building approvals, the number of new homes being constructed remained insufficient to meet the growing demand. Overall, the Perth property market is characterised by competitive buying conditions, rising prices, low vacancy rates, and strong investment interest, underpinned by ongoing migration and a shortfall in housing supply.