Brett Warren , National Director – Metropole Group
Australia’s property market has seen a remarkable turnaround recently, with values climbing steadily after a brief dip.
According to CoreLogic’s Home Value Index, national property values rose by 0.4% in March, marking the second consecutive month of growth.
Add SQM Research data to the mix, and the signs are clear – there’s new momentum in the market. For homebuyers and investors, this is a promising time to explore opportunities.
So, what’s behind this upward shift? Analysts point to improved buyer sentiment, spurred by February’s rate cut, as a major factor.
Better borrowing capacity and mortgage serviceability have created a more favourable landscape for those ready to make their move.
Additionally, easing monetary policy and income growth hint at a sustained period of stability – perhaps even more growth – in the months ahead.
Opportunities for homebuyers
For those looking to step onto the property ladder, this renewed market strength brings exciting prospects. Sydney and Melbourne, two of Australia’s most dynamic cities, have rebounded with consistent monthly growth rates.
Sydney values are now just 1.4% below their record highs, while Melbourne values have risen 0.9% over two months. While affordability remains a challenge for some, the recent trends suggest that now could be an ideal time to buy before prices climb even further.
Regional hotspots continue to shine, particularly in WA and Queensland, where Townsville, Mackay, and Geraldton boast stellar annual growth rates
Opportunities for investors
For property investors, rental returns are a standout feature of the current market. National rental values hit record highs in March, rising by 0.6% from February, according to CoreLogic.
Although the pace of rental growth has slowed in recent months, the annual rate remains above pre-COVID averages. Combined with record-low vacancy rates of 1.5%, this makes for attractive conditions for rental income.
Gross rental yields have also reached their highest levels since 2019, with consistent increases across capital cities and regional areas over the past six months.
Investors looking for steady returns in a stable market will find plenty of opportunities – especially in cities like Brisbane, where asking prices for houses and units continue to rise steadily.
Constrained housing supply should further support property values, creating opportunities for capital growth.
The big picture
As experts remain cautious about predicting rapid growth, the fundamentals point to stability and possibility.
For homebuyers, the narrowing gap between lower and upper market segments offers greater choice, whether you’re seeking entry-level homes or premium properties. Investors, meanwhile, can capitalise on rising yields and a robust rental market.
Whether you’re buying your first home, upgrading, or investing in rental properties, the current market conditions certainly suggest that now is the time to act.
