#17

Is The Rental Boom Fizzling Out?

Property investors are still seeing gains in rental income, but the pace of growth is beginning to slow, according to CoreLogic .

In July, the national median rent increased by just 0.1%—the smallest rise since August 2020. This slowdown is evident in both house and unit markets, with a particularly noticeable impact on units.

“The slowdown aligns with the peak in net overseas migration earlier this year, with most migrants driving demand in inner-city unit rentals,” says CoreLogic's Tim Lawless .

Auction Report Aug 10th, 2024 | Steady Late Winter Auction Results

This past weekend saw steady auction results, with a late winter surge in listings across some markets. The national auction clearance rate rose to 68.3%, slightly up from last week's 66.1%, but still lower than the 74.4% recorded this time last year.

National Overview

• Listings: 1,811 auctions were held, up from 1,657 the previous weekend.
• Clearance Rate: 68.3%, compared to 74.4% this time last year.

Sydney

• Clearance Rate: 67.1%, down from 69.7% last weekend.
• Listings: 686, a jump from last week’s 596.
• Top Sale: A 6-bedroom house at 7 Newton Rd, Strathfield, sold for $12,250,000.
• Most Affordable: A 1-bedroom unit at 113/54 High St, North Sydney, sold for $492,000.

Melbourne

• Clearance Rate: 66.9%, up from 64.5% last weekend.
• Listings: 882 homes, an increase from 791 last weekend.
• Top Sale: A 5-bedroom house at 50 Anderson Rd, Hawthorn East, sold for $5,811,000.
• Most Affordable: A 3-bedroom house at 1/11 Arnold St, Sunshine West, sold for $411,000.

Looking Ahead

With the spring market on the horizon, expect to see solid results continue throughout August.

SA Dominates the Economy Once Again!

For the third quarter in a row, South Australia has taken the top spot in CommSec ’s State of the States ranking.

Here’s how the states stack up:

• South Australia: Leads in unemployment, home building starts, and construction work.
• Western Australia: Secures 2nd place, excelling in home lending and population growth.
• ACT: Ranks 4th, leading in economic growth, retail spending, and equipment investment.

With strong employment and population growth driving economic performance across Australia, it will be interesting to see how the competition unfolds in the coming months.