Herron Todd White Property Clock July 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

Melbourne home values have decreased by 0.3 percent since the beginning of the year, according to Domain and The Age. Higher interest rates and increased property taxes have negatively impacted some suburbs, although more desirable and prestigious areas continue to perform well. Many borrowers and investors were anticipating cash rate cuts in the first half of 2024 to ease repayment burdens. However, with no rate cuts materializing, some homeowners struggling to manage their debts have opted to put their properties up for sale.

Queensland

Overall, most Brisbane and South-East Queensland property owners have been pleased with the performance of their real estate in 2024. CoreLogic data reveals that Brisbane's property prices have experienced some of the nation's strongest growth over the past 12 months, rising by 15.8 percent. In the most recent quarter ending June 30, the city saw a 3.7 percent gain, placing it third among Australia's capital cities. This growth rate is more than triple that of Sydney, which saw a 1.1 percent increase.

Despite national challenges like rising interest rates, cost of living, and financing issues, Brisbane's property market benefits from several positive factors driving demand. Notably, Brisbane's median house price recently surpassed Melbourne's, making it the second-most expensive capital in the country. Additionally, new legislation and taxes in Victoria that are unfavourable to property investors have likely contributed to Brisbane's improving prospects.

The city is also experiencing a surge in infrastructure development, boosting employment and positioning it well for the next decade, particularly with the 2032 Olympic Games on the horizon. However, it's important to note that "Brisbane property" encompasses a diverse range of sub-markets, each performing at varying rates.

Western Australia

In the Perth metro area, the Real Estate Institute of Western Australia (REIWA) reports that the median house price has surged by $95,000 over the past year, reaching $650,000. Growth expectations for 2024 have already been surpassed, particularly in the lower end of the market, with the median house price increasing by $50,000 between January and June alone. Rental prices continue to rise, and the number of suburbs with a median house price exceeding $1 million is rapidly growing.

In June 2023, REIWA reported 3,959 listings with a median selling period of 12 days. By June 2024, listings had dropped to just 2,781, with a median selling period of only eight days. This reduction highlights the intense demand and swift turnover in the market. Agents report high attendance at home openings and instances of multiple offers being made even before official home opens. In some suburbs, selling agents no longer provide price guidance, leaving buyers to determine the value of securing their desired home. This positive market sentiment has also impacted the vacant land market, with increasing pressure on land values.