National Housing Values Approached $11 Trillion
National Housing Values
Australian property value is estimated at $10,911 billion in June Quarter 2024, up $225.9 billion from $10,685.9 billion in the March quarter 2024. The number of residential dwellings in Australia increased by 52,900 to 11,211,000, and the mean price of residential dwellings rose by $15,600 to $973,300, over the June quarter 2024.
In the same period, the total value of residential dwellings rose in all states and territories excluding Victoria, with the largest increase was recorded in the mid – sized cities including Adelaide (+ 14.8%), Perth (+ 24%) and Brisbane (+14.5%).
The value of dwelling stock has a proven track record of strong growth at 7% – 8% over the past decade, which is a strong driver for the growth of households’ wealth in Australia.
Prices
The national property market landscape has changed significantly since the pandemic, with dwelling prices surging due to population increase and limited supply.
According to PropTrack data, national home values have risen by 44.5% from March 2020 to October 2024. Affordability has played a key role in this trend, with more affordable regions recording stronger growth. Notably, Brisbane, Adelaide, and Perth have topped the list of high-performing cities, with dwelling prices increasing by 75%, 76%, and 78%, respectively.
Rapid population increase driven by overseas migration has been a major factor driving housing demand, with a net increase of 518,000 people to Australia’s population by June 2023, marking the largest net overseas migration on record.
On the supply side, there has been a significant decline in property listings nationally since 2020. Total listings dropped from approximately 300,000 before 2020 to around 230,000 since 2021, representing a 23% decrease.
The demand and supply conditions have intensified the ongoing housing shortage and price pressures, especially in mid-sized cities and affordable segments of the market.
The difference in growth rates between capital cities can be broadly explained by the affordability factor. While household income is similar across capital cities, house prices in Perth, Adelaide, and Brisbane are 50% lower than in Sydney. This significant affordability gap is one of the main factors driving up demand from both local and interstate investors.
Rental Yields
National rent values increased by 8.5% over the past 12 months, which is 2-3 times higher than the long-term trends. This happens on the backdrop of housing shortage and a surge of population growth; the vacancy rate has been trending toward a critically low level at 0.6% in Adelaide, 1% in Brisbane, 0,6% in Perth, 0.9% in Darwin, 1.4% in Sydney, 1.3% in Melbourne, 2.1% in Canberra and 1.4% in Hobart.
As housing prices increased at a faster rate than rent prices, the rental yields have declined to a lower level than in the pre-pandemic period, with the lowest rental yields are recorded at the most expensive cities, such as Sydney (2.7%) and Melbourne (3.2%).
In a higher interest rate, investors and owner occupiers are chasing the affordable cities and affordable segments of the market, which provides stronger pressure for capital growth.
New Housing Policies
The Home Guarantee Scheme (HGS), administred by the federal government
The Home Guarantee Scheme (HGS) is an Australian Government initiative designed to help eligible home buyers purchase a home sooner. The Scheme is administered by Housing Australia on behalf of the Australian Government.
It is estimated that up to 55,000 home buyers may take advantage of these grants, potentially adding further pressure to property prices, especially in the affordable segments of the market that are of interest to first-home buyers.
The Scheme offers three types of Guarantees:
- First Home Guarantee (FHBG) – Supports eligible home buyers in purchasing a home sooner, with a deposit as low as 5%. For FY2024-25, 35,000 places are available.
- Regional First Home Buyer Guarantee (RFHBG) – Assists eligible regional home buyers in purchasing a home sooner, within a regional area, with a deposit as low as 5%. For FY2024-25, 10,000 places are available.
- Family Home Guarantee (FHG) – Helps eligible single parents and single legal guardians with at least one dependent to purchase a home sooner, with a deposit as low as 2%. For FY2024-25, 5,000 places are available.
Stamp Duty Exemption in Victoria
The Victorian Government has announced 100% cuts to stamp duty on off-the-plan properties over the next 12 months as part of a broader initiative to boost housing supply.
In an effort to encourage development, the Allan Government is slashing stamp duty on off-the-plan apartments, units, and townhouses across Victoria. This move aims to lower upfront costs, accelerate construction, and make purchasing off the plan more affordable for all buyers.
This one-year stimulus is designed to support the housing industry in delivering more homes for both buyers and renters statewide.
Effective immediately from Monday, October 21, the temporary stamp duty concession has no price cap or first-home buyer restrictions—providing full stamp duty exemptions to owner-occupiers and investors for strata properties at any price point.
New Home Grants in Northern Territory
The Northern Territory government’s new HomeGrown and Fresh Start New Home programs offer three grants, ranging from $10,000 to $50,000, for both first-time homebuyers and existing homeowners.
Aimed at boosting the NT property market and the broader economy, this initiative was a key commitment of the Country Liberal Party (CLP) in the lead-up to the NT election in August.
Under the program, first-time homebuyers can receive a $50,000 grant for building or purchasing a new home in the NT, or a $10,000 grant for buying an existing property.
Existing homeowners can access a $30,000 grant, provided they construct or buy a new home within the Territory.
Once purchased or built, homeowners must reside in the property for at least 12 months. Estimated to cost the government $20 million, these new programs are anticipated to provide a boost to Darwin’s struggling property market.