Property prices stabilising after another boom, with rents still going up
House prices have risen for the tenth consecutive month, but the boom appears to be softening. While values are still accelerating in some capital cities they’re falling in others. Property analysts say higher interest rates are making it harder for would-be buyers to get home loans.
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TVTranscript
00:00 Yeah, just a normal drive. More properties are coming onto the market in some of our
00:05 biggest cities. Investors and apartments are selling at the moment, obviously because of
00:10 the pressure of the interest rates. Prices went up by less than a percent nationally
00:15 in November, totaling seven percent for the year. Darwin, Melbourne and Hobart saw declines,
00:22 while Sydney home values have been slowing. And prices continue to soar in Adelaide, Brisbane
00:28 and Perth. The property boom is easing off as interest rates keep rising. Demand is now
00:34 being deflected away from those higher price points towards the more middle to lower end
00:40 of the marketplace. While rents are rising even faster than property values. The property
00:45 is literally getting the tenant vacating and then within less than a day it's having a
00:49 new tenant sign on. The rent on this unit is $630 a week and with an asking price of
00:56 around $500,000, it's an example of one place that's now better to buy than rent. And it
01:03 isn't just this apartment. Data from PropTrack shows that around half of the apartments in
01:10 the Australian market, you'd be better off buying them than paying that same money to
01:15 rent them for 10 years. It's a numbers game that first home buyers like Erica are contemplating.
01:21 Currently I'm renting, but with the rents going up, it's just, it will be smarter to
01:27 get my own place. But saving up a deposit is taking most Australians at least five years.
01:34 Affordability is becoming much more challenging across all markets. Coming into 2024, the
01:41 market's going to be different to what it was in 2023. The Reserve Bank meets again
01:47 next Tuesday where it's expected to leave rates on hold.
01:51 [BLANK_AUDIO]