According to property researchers, unit values across the Australian capital are declining at a faster rate than seen during the outbreak of the Global Financial Crisis (GFC). core logic.
Units in the capital are down about 2.7%, or about $17,500 (US$13,000), since their peak in April. In August alone, capital unit values fell 0.9%, the fastest rate of decline in 40 years.
However, CoreLogic economist Caitlin Egee said the unit price was about 7.7% higher than pre-coronavirus levels, despite the current decline being the “fastest on record.”
The unit market is also much more resilient compared to the residential market, with the gap between the two annual performances narrowing dramatically.
However, pressure on the cost of living and higher interest rates have slowed demand, as well as in Sydney and Melbourne, which registered declines of 1.5% and 0.6% respectively.
Canberra saw its second monthly decline in August, while Brisbane saw its first value since October 2020.
Listings continue to be a key factor as markets with limited supply such as Adelaide showed positive growth.
“The above-average listing levels in Sydney and Melbourne contribute to distorting sales terms in favor of buyers,” said Ezzie.
Capital units account for 78.3% of the country’s unit supply.
Nationwide rental crisis continues
Meanwhile, the nationwide rental crisis has pushed unit rents above capital gains in all markets except South Australia and Tasmania.
Nationwide gross rental yields for units continue to climb to just over 4%. However, yields in Brisbane and Hobart are still below those recorded in 2021.
The national average unit rent rose 1.1% in August, up 11.3% compared to the same month last year.
Brisbane saw the biggest increase in unit rents in the three months to August, with a weekly rent increase of around $21.
The city has seen a surge in demand for rental properties of all kinds after months of interstate movement from the country’s most heavily locked-down city.
According to SQM Research, Brisbane’s vacancy rate remains a tough 0.7%.
“A recent analysis by CoreLogic, using household income estimates from the Australian National University, found that median weekly rent for national units accounted for 28.6% of average household wages in June, down from 27.6% for the same period last year. It turns out it’s been up. Years,” said Ezzie.
The surge in rental prices has had the effect of reducing demand, but Ezzy expects this to be offset by increased rental demand from international visitors as international immigration gradually returns to normal levels. said there is