The Property Trio (formerly The Property Planner, Buyer and Professor)

#91: Market update - Property values rise at the fastest rate in 17 years, which locations are outperforming, emerging trends and more


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https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's market update #19 of the Property Planner, Buyer and Professor Podcast, the team discuss "Property values rise at the fastest rate in 17 years, which locations are outperforming, emerging trends and more". Dave, Cate and Pete take you through: 1. The February results are in! Summer might be coming to an end, but the property market is getting hotter by the minute. The national market is up 2.1% just for the month of February, the highest jump in 17 years! It's a very impressive growth rate for a 28 day period. Annualised that's a whopping 25.2% growth. 2. Data skewed further by long settlement dates In an upwards moving market, we're seeing many cautious upgraders and downsizers choose to purchase first with a long settlement date, allowing them to comfortably sell after signing the purchase contract. This delay between purchase and settlement is skewing the property data even further, as many sales aren't officially recognised until they settle. 3. The perfect storm for a property run Less people taking time off to go on holiday, the highest savings and borrowing capacity on record and a seasonal stock shortage in January has created a whirlpool of demand outstripping the supply. Even though more stock is coming onto the market, it's not enough to soak up the demand. 4. What's behind the property feeding frenzy? We all know that we have the lowest interest rates on record, but what is not as well known, is the nuances behind the unemployment data. Employment is lower by 3.3% for those aged between 15 to 34. However, for people who are aged 35 plus, which is most property buyers, employment has actually increased by 1.2%. 5. The update for regional areas Regional areas are still performing at a great pace, with interest from investors, local home owners and tree/sea changers pushing prices up. Rents do not move as fast as capital growth, so the outcome is a reduction in yield. The Property Buyer shares with you how to tell if a market is heated, by looking at rental yields. 6. Capital cities v regionals - the gap is closing Rents have started stabilising in Melbourne and Sydney and even in the apartment market, which was one of the segments that were hardest hit. Combined capital city growth is catching up to the regional markets, with 2.0% recorded in February v 2.1% in regionals. 7. The story behind capital city performance Sydney and Melbourne make up close to 50% of the properties in Australia, so if these markets drag the chain, it brings down the combined capital city data with it. Other capital cities recorded strong growth for the last 12 months, whilst Melbourne and Sydney were the most impacted by Covid. You could almost have 3 data sets: Melbourne & Sydney, other capital cities and regional areas. 8. Predictions for 2021 The Property Planner and Buyer update their predictions for 2021, in light of the February data. Cate and Dave debate how and when they think regulators are likely to step in to cool the market. Watch this space. 9. Early market indicators The trio share with you how to get your hands on the critical data to inform your property purchase. 10. Painting the picture with lending data Investors could be muscling their way back into the property market, with investment lending jumping by 9.4% according to the ABS, the fastest rate of growth since 2016. Lending commitments to investors have risen every month for the last 5 months, while loans to upgraders are up by...
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The Property Trio (formerly The Property Planner, Buyer and Professor)By Cate Bakos, David Johnston and Mike Mortlock

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