By applying the right strategy to your specific circumstances, there are ways to speed up your passage to financial independence through real estate.
THE PROPERTY CYCLE
Accrue’s powerful analytical tool illustrates where our team believes the property landscape is positioned so you can make informed decisions for a better future.
PROPERTY CLOCK
Analysis shows that a window of opportunity for exceptional buying is open, but investors need to act fast if they want to maximise their returns. 12 21
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DOUBLED THEIR EQUITY
Experienced investors Melissa and Frank relied on Accrue’s data-based approach to acquisition, and it delivered enormous capital gains.
LOCATION HOTSPOTS
Four more hot locations with the right fundamentals for inventors looking to build an impressive real estate portfolio.
DATA DECK
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Australia’s major markets are at various stages of the property price cycle. Check out our clock to see where your area of interest sits.
A collation of some of the powerful data we utilise to dissect property markets and identify excellent opportunities.
At Accrue, our mission is to build a community of success while promoting positive change.
We believe this collective approach creates a win for many and a better world for all. That’s why we are proud to announce our most recent charity partnership with Drummond Street Services. Drummond Street is one of Victoria’s longest serving welfare organisations, and one of the first welfare services in Australia. Since 1887, Drummond Street has been directly assisting Victorian families and individuals. The organisation also promotes connected and inclusive communities and drives innovation and research into family support interventions.
To assist, Accrue is committed to:
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When discussing property as an investment vehicle for building financial independence, we often revert to the adage that time in the market always beats timing the market.
By adopting a long-term approach, you increase your chance of superior returns as compared to those who have a short-term “buy low and sell high” approach.
That said, I also know there are windows of opportunity that open during market cycles when you can jump start your gains –those moments when economic drivers align and make it possible to buy well and see rapid equity growth.
Well… I believe one of those buying windows is open right now.
For starters, annual inflation has just fallen within the RBA’s target band, meaning the prospect of interest rate cuts is imminent. History shows that when interest rates cuts are announced, property market activity ramps up. In addition, demand for housing is strong among both buyers and renters – particularly within select locations – while supply remains tight. Also, our economic outlook remains buoyant with positive forecasts for employment growth and business investment in certain regions next year.
In this issue of Accrue Magazine, I’ve investigated how
exploring prospects beyond big-city borders is helping certain investors at the right stage of their investment journey accelerate their portfolio’s returns.
Speaking of prime locations, we have another four hotpots for you. These places have the right numbers for exceptional long-term returns. What’s interesting is that this month’s hotspots are all in Victoria – a state that some other market advisors have been avoiding. However, we know from experience that countercyclical buying in prime locations tends to deliver fabulous outcomes for those who rely on sound analysis.
Our property clock, market cycle and data deck also illustrate compelling information about the prime investing opportunity we have at this moment in time. Our data pages in particular are full of convincing metrics and show the diverse amount of information that must be properly considered to effectively boost potential returns.
We’re thrilled to announce that we recently held our first
Accrue Rewards Club Giveaway, and it was a great success! This program is our way of giving back and showing appreciation to our valued members. Don’t miss your chance to be part of the next giveaway—keep an eye out for the next one, head to the landing page for all the details and enter for your chance to win thousands in prizes. Join the excitement and celebrate your membership with us!
You’ll find all the details in this issue, so head to the landing page and enter for your chance to win thousands in prizes.
While the chance to invest wisely and see excellent results is available during most market cycles, I believe those who choose to act now will have timed their run to perfection. Your portfolio’s performance relies on acquiring the right asset in the right location based on your personal resources, needs and goals, and this is where our teams perform at their best.
Please enjoy the Spring issue of Accrue Magazine.
JASON NEVINS CEO
Accelerating your wealth journey
JASON NEVINS CEO
When it comes to great investments, our analysis shows strategic diversification can fast-track your path to financial freedom.
Investing is a rewarding journey that, with the right approach, can deliver enormous financial benefits to those who choose to act and embrace smart planning and a long-term view on success. Opportunities across our country to buy assets with excellent upside are varied. At Accrue, we have a bespoke strategy focus where each client’s individual needs are the bedrock of our advice. Anybody who suggests a one-size-fits-all methodology to buying real estate should be treated with caution, because not all asset types will suit each investor’s needs.
One of the primary considerations when it comes to asset selection is your buying budget – a figure best set by exhaustive assessment of your resources, risk tolerance and financial limits.
We’ve helped many investors begin their investment journey via lower-cost, high-quality stock within capital cities. Well-chosen
apartments in the $400,000 to $500,000 price bracket, for example, can be exceptional foundational properties for a portfolio. And while these assets will continue to suit some investors as their portfolio grows, many look to diversify their holdings and benefit from what’s happening beyond the big-city centres.
With a budget of $600,000 or more, it’s possible to buy extraordinary real estate both on the city fringes and regionally.
For those investors who’ve built some equity and can take advantage of the market, securing high-quality assets such as detached housing in these regions can turbocharge total returns, and deliver financial freedom faster and more securely than they may imagine.
In this issue of Accrue Magazine, we wanted to explore the metrics and measures behind fringe and regional success in the investment
market, particularly for those with a buying budget above $600,000. Our analysis shows that for the right kind of investor, concentrating solely on the big cities isn’t always the best path to success, but it’s essential to choose the right locations and asset types.
BIG PICTURE REGIONAL SUCCESS
For a while there, some property investors considered the idea of taking their money out of capital cities - and only the really big capitals at that - to be a foolish suggestion. They reasoned that the growth on offer in regional hubs was too small to bother with, and so booming city areas were the prime focus. For them, the regions might do well over time, but not in a way that would rival the big smoke. Non-metro areas were destined to always be the bridesmaid and never the bride.
AUSTRALIAN DWELLING VALUES
12 month changes
CHANGE IN DWELLING VALUES
12 MONTHS TO AUGUST 2024
Source: CoureLogic
“Home values in non-capital city areas have exploded by 52.5% since the outbreak of COVID.”
That perception doesn’t match with reality, especially when looking at recent movements and casting an eye towards what’s forecast to come.
Just look at the numbers side-by-side.
According to CoreLogic data, home values in non-capital city areas have exploded by 52.5 per cent since the outbreak of COVID.
That enormous figure over the span of just four-and-ahalf years exceeds the stillexponential growth seen in the major cities, where median dwelling values have grown by 33.4 per cent since early 2020.
When looking at rental markets, the disparity isn’t quite as wide but it’s still there.
Regional rent prices have risen 39.1 per cent since the onset of the pandemic, compared to 35.4 per cent in the capital cities.
This extraordinary result wasn’t an accident. Record population growth has seen major regional centres and city fringe locations welcome hordes of new residents, who all need somewhere to live.
But being affordable doesn’t guarantee you’ll attract lots of people. There are scores of tiny towns that prove that.
What many regions have on top of achievable property prices are thriving economies that are varied and offer lots of employment opportunities, a good level of amenity and convenient access to services, and some infrastructure investment.
It’s a perfect recipe for growth.
"When looking at the states where regional property markets have been really firing this year, a few common trends are
evident", CoreLogic economist Kaytlin Ezzy said.
For example, Queensland and Western Australia have a number of the top-performing non-capital city locations - and for good reason.
“The diversity in economic activity, including agriculture, tourism, ports and mining, would be contributing to the strength of these markets, along with their higher levels of interstate migration, relative affordability, and low supply levels,” Ms Ezzy said.
If you want an indication of the regions where home price growth is likely, follow the money. Where are big companies setting up shop? Where are local economies firing on all cylinders? Where is there a good mix of government and private investment across several different industries?
HIGHEST GROWTH RATES
YEAR TO AUGUST 2024, ALL DWELLINGS
Even secondary capital cities once avoided by those who focused only on Sydney and Melbourne are having their time in the spotlight.
Just take a look at home prices across the country, which saw their 20th consecutive month of growth in August to hit a new record high. At a combined capital city level, there was a year-on-year home price lift of 6.49 per cent, but drilling down, the star locations are places once derided by some narrow-minded city slickers.
Perth and Adelaide topped the list of best-performing capitals, at 23.2 per cent and 15.1 per cent respectively, with Brisbane ranking third on 14 per cent, according to PropTrack data.
Compared to the biggest cities in the country, home prices there have been much more affordable for years, meaning that as the population surged, the ability to buy a dream home for a fraction of Sydney and Melbourne’s prices was an attractive drawcard.
But more than that, there were great employment, lifestyle and economic lures. These kinds of drivers are in play elsewhere in the top performers list.
Outside Perth and Brisbane, regional Western Australia and regional Queensland have seen huge growth over the past 12 months, up 14.9 per cent and 11.3 per cent respectively.
And South Australia’s regional market has jumped 9.3 per cent
year-on-year while regional New South Wales saw a 3.9 per cent lift over the course of the year.
Broadly speaking, rent markets outside of the capital cities continue to perform well thanks to persistently strong demand and a shortage of available homes.
While growth seems to be slowing in some major cities, conditions on the fringe and
ROLLING ANNUAL CHANGE IN DWELLING VALUES
Source: CoreLogic
also in regional hotspots are still favourable to investors.
CoreLogic’s latest Regional Rental Index showed a 1.3 per cent increase in prices over the three months to June 30. That followed a 2.8 per cent increase in the March quarter.
In fact, across Australia’s 50 biggest non-capital city rental markets, just six recorded a decline in rent prices in the June quarter.
When zooming out and looking at the past year, all 50 of those major regional markets saw increases in values.
ROSIEST REGIONAL HOTSPOTS
One of the big misconceptions rookie property investors have is thinking of real estate as a single market.
Australian home prices. Sydney home prices. Even home prices out in the back of Bourke. You hear it all the time but it overshadows the reality that there are countless micro markets.
Think of it this way the next time you hear talk about Melbourne’s housing market. Which Melbourne? Inner-city? Northern suburbs? The west? The Mornington Peninsula? They’re all vastly different markets.
And the same way of thinking should apply to regional markets too.
The descriptors of "regional Queensland" or "regional Western Australia" cover a mammoth amount of area
and hundreds of towns, big and small, each driven by very different factors.
One town might be fuelled by mining, logistics and professional services while another is all about tourism and leisure. You’ll find hotspots where everything from agriculture to viticulture reign supreme.
And you’ll find plenty of towns that aren’t driven by much, where real estate prices probably haven’t budged in the past decade - or longer.
That’s why it’s important to avoid the temptation to look at the regions with a risky simplicity. Merely turning your attention to a city or town and going all-in based on its broad appeal is a surefire way to get in trouble.
You need to ensure you understand a location’s dynamics, demographics, demand-versus-supply mix, and its diversity of economic drivers.
There are a number of regional hubs we’re keeping a close eye on at the moment. To illustrate, here are two excellent examples of noncapital opportunity.
► Toowoomba Queensland
Over the past few years, Toowoomba’s housing market has been a stand-out in Queensland and investors from across the country are eager to check out what’s happening.
Last year, it was one of the top spots for migration across the Sunshine State, which is pretty impressive given it’s a few hours inland from the famous coastline.
But Toowoomba is the main hub of the Darling Downs region and "the big smoke" for many further flung rural townships to the north and west.
Aside from being a pleasant place to live and grow a family, with fantastic services and a high level of amenity, Toowoomba’s economy is strong. Its major drivers are healthcare, education, construction, manufacturing, agriculture and industry professional services.
Its current population of 180,000 is set to surge to 235,000 by 2050.
The median house price in Toowoomba is currently sitting at about $618,000 although values vary depending on the suburb and property type.
It’s not just us impressed by the prospects on offer in The Garden City. Toowoomba, and specifically the suburb of East Toowoomba in the city’s heart, recently featured on Canstar’s annual list of ‘rising star’ real estate investment locations.
► Shepparton Victoria
While it’s only about 180 kilometres from Melbourne’s CBD, you could be a million miles away thanks to the rural charm pouring out of the place.
Home prices are pretty affordable, with a median home price sitting at about $450,000, although where you’re looking in the city and the dwelling type on offer can see that number shift up or down. Often increasing this budget just a little more can land you an exponentially better asset.
Investors have been turning their attention here thanks to exceptional average annual growth rates, high rents and strong yields.
But it’s Shepparton’s status as a thriving city with a robust economy that’s especially attractive.
The city reaps the benefits from strong agriculture and food processing industries, but it’s also the place for nearby communities to come to.
Aside from agriculture, its other major industries are healthcare, forestry and manufacturing.Several other regional areas are on our radar too.
One of them is Geraldton in Western Australia, thanks to its strong projected population growth and its economic mix of port services, mining, fishing and agriculture.
Another is McCracken in South Australia, which has seen a huge influx of young people since COVID given it’s an hour from Adelaide, close to the McLaren Vale wine region, has a high socio-economic profile, and fantastic but comparatively affordable real estate.
And then there’s Wagga Wagga in New South Wales, which will see billions of dollars in infrastructure investment in coming years on everything from Snowy 2 to energy network expansions. It has major Defence Force facilities, on top of key economic industries from agriculture to construction, manufacturing and public service.
Talk to us about the regional hotspots with the strongest prospects for growth and ongoing returns.
YOU DON’T HAVE TO VENTURE FAR
Finding opportunities outside metropolitan areas doesn’t mean you necessarily have to go that far away from the CBD. There are some very interesting prospects on the fringes of big cities.
Over the past decade, some exciting things have been happening on the outer edges of capitals, with whole new communities developing.
And they’re much more than stock-standard housing estates you might’ve expected to find once upon a time. They’re thriving neighbourhoods with quality homes on peaceful streets beloved by young families, professionals and upgraders.
Many offer exceptional value, both in terms of the comparatively lower home prices but also the bang you get for that buck. Quality homes, room for families to
grow, convenient access to everything locals could need or want, and bright futures on the horizon.
Thanks to the space they have to play with, these regions are a key part of the solution to Australia’s housing crisis.
Many are also beneficiaries of major infrastructure investments, where governments are spending big on transport, healthcare and education, and industry expansion.
Think Melbourne’s rapidly expanding fringes, Brisbane’s outer suburbs, Sydney’s far west and Perth’s north and south.
Talk to us about the exciting outer-city locales that have excellent prospects for exceptional returns.
THE 15-MINUTE CITY
Right across Australia, both state governments and individual councils are adopting the principle of a "15-minute city" or a "15-minute neighbourhood". It’s a notion that drives a grand vision of liveability - making suburbs the very best places they can be for people to live, work, play and grow.
In a nutshell, the idea is that you should be able to travel no further than 15 minutes from your house and find everything you could need or want to live your daily life. And that’s whether you’re driving, catching public transport, riding a bike or walking. Within easy reach
of your home should be shops, community and recreation facilities, essential services and good transport links.
As well as convenient, these spaces should be attractive and promote good health via sufficient greenery and canopy cover, properly designed roads and pathways, opportunities to play and gather outdoors, and plenty of parks and outdoor spaces.
Governments, developers and planners in virtually every city are collaborating to make the idea of a 15-minute city or neighbourhood a reality. Huge investments are being made from Sydney to Darwin to ensure the suburbs we live in aren’t just places to plop housing but thriving communities with revitalised local centres.
In tandem with this philosophy is the recognised need to drastically increase Australia’s housing supply.
More housing means the country can accommodate its exploding population, but on top of that, bigger resident
bases can support a higher level of service and amenity, The need for more development is definitely there.
As PropTrack economist Anne Flaherty explained, there are simply not enough homes for Australia’s surging population.
“The number of people living in Australia increased by 651,300 in 2023,” Ms Flaherty explained.
“Based on the current average household size of 2.5 people, this implies the need for an additional 260,500 homes. Last year, just 172,900 homes were built.”
That represents a national shortage of 87,600 in a single year - at a time when the running number of homes needed to comfortably house our existing resident base was sitting at about 170,000.
“But this shortfall has been more pronounced in certain markets,” Ms Flaherty added.
“Across New South Wales, just 63 per cent of the new homes needed to match population growth saw construction completed in 2023. The figure
MONTHLY HOUSE VS. UNIT APPROVAL
was similar in Queensland, where 60 per cent of the new homes required were delivered.
“Victoria and South Australia fared better, with 75 per cent and 86 per cent of the new homes needed delivered.
“This is in stark contrast to Western Australia, where just 47 per cent of the homes required to match population growth were completed.
“This has resulted in a significant undersupply of homes... ”
“This has resulted in a significant undersupply of homes, which has caused both rents and home prices to surge above the levels seen in any other capital city or regional market.”
PERCENTAGE SHORTFALL IN NEW HOMES COMPLETED
The Federal Government has announced measures to ease the record-high rate of population growth, but even so, it’s expected to well exceed the number of new homes built each year for some time.
“New dwelling approvals and construction starts are sitting at a decade low,” Ms Flaherty pointed out. “This is expected to intensify competition among buyers and renters looking for a home.”
TIME TO BUY INDEX
MOST BUYERS STILL CONFIDENT
There’s been a bit of uncertainty in media headlines of late.
They’ve screeched about everything from interest rates and when they’ll eventually start to come down and the local economy and what’s happening globally to the constant brawling in parliament house over key housing measures, and more.
You might’ve seen some reporting recently on the results of the latest Residential Audience Pulse survey conducted by realestate. com.au, showing a rise in the number of buyers who are worried now is not a good time to purchase property.
That report made for some really scary headlines - but almost all of those news outlets missed some important context.
While there was a lift in the number of less confident homebuyers, there was also a pretty healthy jump in those who think now is a good time to make a move.
And the proportion of confident buyers is up in every single state and territory compared to this time last year. Pretty convenient that the good news was buried, isn’t it?
Even the data on reduced confidence is worth examining a little closer, as the report’s author Karen Dellows explained.
“There was a 46 per cent increase in the number of
HOUSE PRICE EXPECTATIONS INDEX
potential buyers who think that prices will continue to rise in the next six months, and as a result may be concerned about being able to afford to buy,” Ms Dellows said.
“In Western Australia and Queensland, which have both experienced double-digit price growth, the majority of survey respondents believe that prices will continue to rise.
“In both states this was a double-digit increase compared to last year. This sentiment was similar in New South Wales and Victoria.”
WHEN WILL RATES FALL?
One thing that’s weighing on the minds of wouldbe homebuyers is what’s happening with interest rates, and bizarrely, 45 per cent fear a rate hike by year’s end. That’s more than double the number in last year’s report, when the actual prospect of an upward move was much greater.
Even with inflation lowering at a slower pace than the Reserve Bank would like, virtually all economists and pundits believe
the likelihood of an interest rate increase is extremely low.
So much so, money markets are now pricing in four - yes, four! - rate cuts over the course of 2025.
The Australian Stock Exchange keeps a running tracker of how financial markets view the outlook for interest rates, and in mid-October, a stunning revelation emerged.
Markets expect the first rate cut in February and then three more over the coming months to August, which would deliver significant relief to property owners and a shot of confidence for would-be buyers and investors.
Even before the Reserve Bank moves, some lenders cut their interest rates in September for fixed-rate mortgages as well as loans for investors. Experts say banks giving out discounts like those isn’t a sign of their charitable mood, but rather an indication they expect the official cash rate to fall sooner rather than later.
But, once again, negative sentiments echoed by the media are clearly having an effect on how the average Australian views the rates landscape right now. The good news is that less confidence means more opportunity for those long-term investors who buy now in the right locations and buy assets based on sound planning and strategy.
CONSUMER PRICE INFLATION
Australian Property Cycle
We believe that the market is in the seven to eleven o’clock range where it's currently experiencing growing confidence, price rises, undersupply and rising valuations.
At Accrue, we recognise the importance of understanding the current stage of the property market cycle to provide our clients with the most relevant and accurate advice. The property cycle, which comprises 12 segments representing different cycle stages, is a valuable tool for assessing market conditions.
Based on our analysis, we believe that the market is in the
seven to eleven o’clock range where it's currently experiencing increased confidence, rising prices, undersupply of stock and rising valuations.
This signifies a prime time to invest in property as it suggests we are in a growth period. Predictions are that mortgage rates will drop in the near future.
If this is the case, then we are set to see a rise in property
prices. If you are considering investing, now is the time before the surge.
As a trusted partner, Accrue is committed to helping our clients find the perfect investment property to suit their needs and goals. Our team of experts has a deep understanding of the property market and can provide tailored advice and solutions to meet our clients' unique requirements.
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We’re thrilled to announce a fantastic initiative set to deliver incredible prizes to you, the committed members of the Accrue family.
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From dance-floor romance to doubled equity
When they saw each other across a nightclub dancefloor 34 years ago, little did Melissa and Frank realise the fabulous life they would build together, including financial freedom for them and their kids.
Well… when we say “saw each other”, things were actually a little less clear for Melissa than Frank as it turned out.
“It was in 1993 at Manhattan disco in Ringwood. It had a revolving dance floor,” Melissa said.
“I wasn’t wearing my glasses when Frank waved to me across the room at the club. Thinking he was a friend I walked up to him to say hi , quickly realising I didn’t know him at all” she laughed.
Well, that very smooth move by Frank worked. Five-years
later and the two tied the knot. Fast forward to today, and they have three beautiful kids ages 22, 19 and 16, and more recently a grandson.
The couple also have thriving careers – Frank’s is in the technology sector, while Melissa has been making her mark in the tax arena.
“Frank moved to IT after coming from a farming family –but both he and his dad knew he wasn’t going to be staying on the land.”
The couple were well placed to be thinking about their long-
term future too. They started their real estate journey like most couples via a first home.
The pair bought their place in Ferntree Gully, Victoria in 1998 and moved in straight after their wedding in May 1999.
Showing they had the fiscal discipline to go further, they chipped away at the home loan until it was paid out.
Then in 2000, they had the opportunity to invest in an off-the-plan property through Frank’s cousin in the growing area of Berwick. It turned out to be a great move with Melisa
saying they’d only recently sold the asset.
“After 24 years, we certainly made some good capital gains.”
With a taste for investing, Frank and Melissa even dabbled in the commercial sector. They dealt with a large investment group who helped them put money into an office suite in Melbourne in 2005.
“It wasn’t for capital growth, it was for positive cashflow. We still have it and its just maintained that cashflow for us.”
There’s been one other real estate move in very recent years too. The couple sold their Ferntree Gully home in 2008 and moved to Rowville.
“It was a big jump in our budget for a home. This was after we had our third child – we just didn’t have enough room in our first home for the growing family, so the move was needed.”
But let’s rewind a little. Here they are – it’s 2013, and they’re professional people with three kids, savvy in the world of property with some excellent equity and diversified holdings. It was time for next steps in their investment journey.
“Frank in particular is a ‘future thinker’, and my mum is heavily into investments too. She took Frank to an investment group, and they did a course. That stirred his interest a bit more and he was keen to explore more properties.”
Melissa said they came across Accrue during this time and decided to meet with the team and see what they were all about.
“We met with Andrew from Accrue, and he thought it was pretty fantastic that we were all organised and came prepared to talk finance and other things with him. We quickly knew we wanted to push go and walked away from that meeting signed up to buy three properties and established a SMSF (SelfManaged Superannuation Fund).”
Melissa said she likes Accrues no-nonsense approach.
“Both Frank and I are straight shooters. Being upfront and honest and not beating around the bush is important to us. Andrew was just that. He said, ‘We’re going to work out what you can and can’t afford and go from there,’ and that really clicked with our personalities.”
From there, they arranged finance via their own broker. They also worked with an Accrue recommended accountant to help establish and manage the SMSF arrangements.
Their first was purchased in 2013 for $510,000 and was an established, two-bedroom townhouse in Pascoe Vale that was being rented out under an NRAS agreement. NRAS is the National Rental Affordability Scheme which was established to help low-income households lease a home at below market rent. In return for participating
in the scheme, landlords received financial incentives which help generate a positive cashflow from the asset
Their second acquisition was an off-the-plan detached house in Heidelberg for $565,000. They signed a contract to purchase this one in 2013, and finally settled on the newly built home in 2015. Accrue assessed the market rent for that property at $450 per week.
“We prefer investing in standalone homes and this property really appealed to us in that it’s comfortable enough for a young family. It’s something Frank and I would’ve happily moved into when we were starting out, and that’s a good benchmark to us.”
Their third acquisition was through their SMSF. It was $350,000 off-the-plan home on a corner block in Craigieburn that has a market rental of $398 per week.
“Because you’re borrowing capacity under the SMSF is more limited, we had a lower budget for this one.
“We signed up for it in 2013 also, but it didn’t finalise and settle until 2018 because the original builder went under and then another builder had to finish the work.”
Being an accountant, Melissa loves numbers, so she regularly checks in on her portfolio and its returns.
“I know that based on just average market confidence online value estimates, we’ve already doubled our equity across these assets.”
Of course, this very active couple haven’t been resting on then financial laurels. They signed up for another property in Western Australia last year.
“It’s our first one outside of Victoria. It’s an off-the-plan located in Dandaragan and it’s a detached house close to the wetlands where there’s a lot of fishing. There’s a lot of working opportunities in that area as well, so that bodes well for population growth and demand for housing.”
Now you might expect this well-established couple to have set some defined goals for their future, but that’s not how they work best.
“We were asked about our goals at that first Accrue meeting. Franks said he wanted to retire at the age of 50, but I knew that was ambitious even back then, because we were already in our 30s. But we love staying active. In fact, I don’t think Franks will every fully retire – he just isn’t someone for sitting around and doing nothing.
“His ambition is about being financially stable enough to have the ability to choose to retire and be comfortable if he wishes.
“For me, I feel like I’m already semi-retired because I only work three days a week. My boss would like me to do more, but there are too many other things I want to do in this life.
“I enjoy walking with a group and doing walks like around the Dandenongs and I’m looking forward to a four-day hike in New Zealand in January with some high school friends.
Melissa also believed that being finically free means being able to help their kids with whatever they needed in life as well. Their portfolio has already assisted them in doing this with one of their kids.
She said Accrue have been fantastic at helping them get to where they are today with their real estate holdings.
“I really appreciate the way Accrue does all the research. They come up with not just information about the properties themselves, but also the areas and developments in the areas. They look at all sorts of things from work opportunities through to lifestyle in the suburbs they suggest.
“I also do like that they’re asset recommendations are all new builds – so I know
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“I REALLY APPRECIATE THE WAY ACCRUE DOES ALL THE RESEARCH”
I’m not buying anybody else’s problems. It means it’ll be easier for us to maintain too.”
Melissa said the generous deprecation allowance that come with those newly constructed homes appeal to her accounting background as well.
Melissa said she’s really happy with their portfolio right now, but suspects Frank will be keen to invest again as soon as they’re able.
“Of course, he doesn’t have to do the tax work at the end of each final year,” she laughs.
The pair have been so happy with their Accrue experience that they’ve been championing them to others thinking about investing in property.
“I’ve recommended Accrue to everybody I know.
I said to them Accrue will do everything for you.
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Clyde is about 48 kilometres from the CBD but its direct connection to the M1 makes the commute by road very doable.
The title of Melbourne’s most family friendly suburb could soon be snatched by a rapidly developing pocket in the city’s southeast. Clyde almost perfectly encapsulates the notion of the Great Australian Dream - safe streets where kids can play, welcoming neighbours who look out for each other, and natural beauty that makes the rat race feel a million miles away. But that slice of suburban bliss doesn’t come at the expense of convenience or location.
There’s a train station nearby at Cranbourne too. And authorities have earmarked a site for a future rail extension to Clyde itself, with the council lobbying the Victorian Government for funding. There’s no ink on paper just yet, but the discussions show the future outlook for growth.
Another planned development to keep an eye on is the Clyde Major Town Centre - a shopping centre precinct sitting on 26 hectares of land and a permit for up to 50,000 square metres of retail space. Until then, there are plenty of existing shopping and lifestyle amenities close by in Cranbourne.
Clyde, that growth has been perfectly balanced with a considered focus on green spaces, with more parks and playgrounds than you can poke a stick at.
There are several excellent schools in the region, including Casey Grammar and Clyde Secondary College.
Like many newer suburbs on Melbourne’s fringes, this neighbourhood is seeing a lot of change - and fast. But in
The median house price is $680,000, which has edged upwards by 0.7 per cent in the past 12 months, while the average weekly rent is $565, which has surged by 13 per cent.
That relative affordability, offering big bang for buck for both owner-occupiers and tenants, makes Clyde very desirable.
The level of interest from would-be homebuyers is strong, with 2543 serious buyers looking right now, according to realestate.com.au data. And at the moment, there are some 1287 renters looking in Clyde.
Clyde
Wide and leafy street here are adorned with designer homes.Put simply, it’s a very homey place to be.
And the strong sense of community spirit is a major drawcard for young professionals and growing families alike.
Pakenham
There’s a reason Pakenham locals describe it as Melbourne’s best kept secret. Nestled about 53 kilometres southeast of the CBD, it’s exceptionally connected via road and rail, making the commute to town a little over an hour.
Pakenham
Victoria 3810
Despite that convenience, and even though it’s one of the fastest-growing parts of Melbourne, Pakenham retains a distinct and and desirable country town vibe with huge expanses of rolling green fields.
Everything locals need and want is located conveniently, either in Pakenham itself or a short drive away, whether it’s retail or recreation.
Cardinia Council has embarked on a significant revitalisation project in the heart of Pakenham, set to be delivered across 12 stages over the coming decade.
The suburb is also home to Pakenham Racing Club, one of the best facilities in the state, which obviously has horse racing, but it also serves as a community hub throughout the year by hosting a range of events, from family functions to music festivals.
The median house price is $651,000 and has grown by 2.5 per cent in the past month, while the average weekly house rent of $510 has leapt by a whopping 13.3 per cent.
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D i re c t i on s S ave Ne a r by S e n d to ph on e S h a re
As well as major streetscape upgrades and laneway and arcade improvements throughout the town centre, the initiative develops a blueprint for future mixed use development and further urban renewal.
Demand is high, with realestate.com.au data showing there’s 5885 serious homebuyers in the market for a property in Pakenham.
Tenants are particularly keen to be in Pakenham, with 1647 renters on the hunt for a home right now.
Pakenham
Moonee Ponds
Moonee Ponds, about seven kilometres northwest of the CBD, is the type of suburb that new arrivals can’t believe they didn’t discover sooner.
But beyond the aesthetics, the area - MoPo, as locals lovingly call it - is vibrant, colourful and increasingly cool. Puckle Street, running through the heart of the suburb, is home to an array of boutiques, cafes and restaurants and serves as a major drawcard for locals and visitors.
That’s just the start. Shopping centre? You got it. Boutique dog groomer? Yep. Hot yoga and a day spa? Absolutely.
It is fast becoming one of Melbourne’s most sought-after inner-city locales, and it’s not hard to see why.
Just about every service you could need, from doctors to specialists, are either in MoPo or close by, adding to the high level of amenity.
Not far away you’ll find Maribyrong River, offering a picturesque place to exercise or relax.
Moonee Ponds has direct and exceptional access to the CBD via road, rail, bus and tram.
The median house price of $1.56 million has nudged upwards by 3.7 per cent, while the median unit price of $570,000 has leapt by 10.7 per cent.
Would-be homebuyers are out in force for just about any property type, with 4625 serious lookers for houses and 3088 prospective purchasers hunting for units.
Map
Moonee Ponds
Victoria 3039
For one, Moonee Ponds is beautiful. It’s incredibly green, with an assortment of parks and playgrounds, as well as many famed tree-lined streets that are home to historic mansions.
And, of course, there’s the iconic Moonee Valley Racecourse, home to the prestigious Cox Plate as well as a variety of other meets throughout the year, and community events outside of racing.
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The rental market here is running hot, with the average weekly rent for a house hitting $700 after rising almost 13 per cent over the past year.
For units, the average weekly rent price of $520 has skyrocketed by 15.6 per cent.
Moonee Ponds
Property Hotspot
Young families love the open space, access to good schools, and warm and welcoming vibe from locals.
And students are a big part of the demographic, given Bundoora is home to RMIT and LaTrobe campuses.
Bundoora
Just about anyone might feel right at home in Bundoora, a pretty pocket about 16 kilometres north of the Melbourne CBD.
On one end of the spectrum, retirees are drawn in by its safe status and relaxed atmosphere, on top of an excellent array of services,
At the other end, young professionals have been flocking here thanks to the comparatively attractive property prices, particularly for units.
That population of young people has seen a good coffee and cafe scene develop, giving residents plenty of spots to relax or catch up.
But the suburb is perhaps best known for its abundance of green spaces, from sprawling parks and popular playgrounds to peaceful nature walks. Botanica Park, with its picturesque lake, and Bundoora Park Farm are particular drawcards for locals and visitors alike.
As well as having a good level of services and amenities locally, being surrounded by big hubs like Epping, Reservoir, Greensborough and Eltham
only add to the level of convenience.
While there’s no local train station, regular services run from nearby Keon Park or Macleod. There’s a tram though, as well as reliable bus services.
The median house price is $853,250 and has risen by 2.8 per cent year-on-year. The median unit price is $435,000 and has dipped by 2.8 per cent in the past year, on the back of a flurry of new project completions.
That new supply hasn’t dented the strength of the rental market, though. The average weekly rent for a unit is $460 per week and that’s leapt by 15 per cent in the past year.
Meanwhile, the average weekly rent for a house has also grown sharply, up 11.5 per cent in the past year to $557.
Bundoora
The Data Deck
Australian Property Clock
Our research and acquisitions team uses data and analytics to identify the nation's next property hotspots, keeping our clients ahead of the market.
Adelaide - South West
Albury
Cairns
Darwin
Sydney CBD
& Northern Sydney CBD
Sydney - Outer West
Perth CBD
Perth Regional
RISING MARKET
Sydney - South West
Newcastle
Coffs Harbour
Sunshine Coast
Brisbane CBD
Outer West Brisbane
South Brisbane
Gladstone
Outer West Melbourne
Hobart & Launceston
Townsville
PEAK OF MARKET
MARKET BOTTOM
DECLINING MARKET
Adelaide - North West
Melbourne CBD
Melbourne Southbank
Melbourne - Outer South East
Canberra
SPRING 2024
Geelong Ballarat
Bendigo Gippsland Shepparton
Hedonic Home Value Index
Sydney home values slip in October as market cooldown continues
CoreLogic’s national Home Value Index (HVI) recorded a 0.3% rise in October, the 21st month of growth since the cycle commenced in February last year. The subtle positive movement was supported by the mid-sized capitals, led by Perth with a 1.4% rise over the month, offsetting declines in Darwin ( -1.0%), Canberra (-0.3%), Melbourne (0.2%) and Sydney (-0.1%), as well as regional Victoria (-0.2%).
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As the market cools, annual growth in national home values has continued to ease, reducing to 6.0% over the 12 months ending October, down from a recent peak annual growth rate of 9.7% in February.
to lead the nation with a 1.4% rise in values over the month, but this is well down from the growth seen over February to June period earlier in the year when monthly gains were averaging more than 2%. Adelaide values have risen by more than 1% each month since March, but conditions look to be slowing here as well with October’s 1.1% gain marking the lowest monthly rise since June. Brisbane’s monthly gain of 0.7% was the lowest since July.
Accrue is presented with thousands of property options across Australia each year.
to outpace the market. It’s this facts-based analysis that ensures we are choosing locations and assets that will maximise the benefits to our members.
The -0.1% fall in Sydney home values was the first monthly decline since January 2023, following a short but sharp -12.4% drop in values between February 2022 and January 2023. Weaker conditions have been led by the most expensive areas of the market, with a -0.6% fall in upper quartile house values over the month and a -1.1% drop over the past three months. In comparison, Sydney’s lower quartile house and unit values both recorded a half a percent rise in values in October.
CoreLogic’s research director Tim Lawless notes that the stronger performance across the more affordable end of the market is a consistent theme across the capital cities.
Based on our extensive selection criteria, we narrow this pool down to less than 30 per cent which we consider worthy of presentation to our members. We love statistics and data! Our acquisitions team utilises a wide range of available information to help unearth those locations most likely
Slower growth in home values has been accompanied by a rise in advertised stock levels. Based on a rolling four week count of listings to October 27th, advertised inventory has increased 12.7% since the end of winter across the combined capitals, with the largest increase occurring in Perth where listings are 20.6% higher, albeit from an exceptionally low base.
data-based trends, with a particular emphasis on capital growth and rental yield.
“Total listings are now 13.2% above the previous five -year average in Sydney and 13.0% higher in Melbourne,” Mr. Lawless said, helping to explain the weaker conditions in these markets as buyers benefit from more choice and less urgency in their decision making.
Our borderless approach to property investment sees us study the numbers across the country to identify
CORELOGIC HEDONIC HOME VALUE INDEX
“A combination of less borrowing capacity and broader affordability challenges, as well as a higher-than-average share of investors and first home buyers in the market is the most likely explanation for stronger conditions across the lower value cohorts of the market.
“The past three months has seen the lowest quartile either record a higher growth rate or smaller decline relative to the upper quartile or broad middle of the market across every capital city except Canberra.”
While the mid-sized capitals are still leading the pace of value growth, these markets are also losing momentum. Perth continues
Index results as at 31 October 2024
EMBARGOED: 0:01am, Friday 1st November 2024 Change
Property is a long game. Our quantitative approach coupled with years of experience ensures we keep ahead of the curve and deliver the best possible outcomes from the selected investments.
“Despite the rise in listings across the mid -sized capitals, Perth, Adelaide, and Brisbane are still seeing advertised stock levels more than -20% below the five-year average for this time of the year. These markets remain well and truly in favour of sellers, although the balance is starting to gradually improve.”
Alongside the rise in advertised supply, the number of home sales looks to be fading. Estimates for capital city sales activity over the three months ending October were down -7.5% from three months earlier and -1.6% lower than at the same time last year.
CoreLogic’s analysis to 31st October shows both total returns and annual capital growth are maintaining a strong positive direction although they have eased slightly during the past three months. The annual total return on dwellings across the combined capitals was 9.9 per cent, down from 12.3 per cent at the end of June. Perth was again the standout location with a 22.6 per cent uptick in dwelling values. Adelaide at 15.0 per cent and Brisbane at 13.0 per cent filled out second and third positions. Quarterly growth rates remain positive across both regionals and capitals, so the gains are well established in most markets.
With higher levels of advertised supply and less purchasing activity, selling conditions have loosened. Capital city auction clearance rates held below the 60% mark through most of October, while private treaty metrics are showing a subtle rise in median days on market, especially in cities where advertised stock levels are above average.
Sydney Melbourne
Canberra
Combined
Combined
VALUE CHANGE BY HOUSING TYPE –CAPITAL CITIES
A more detailed breakdown of monthly values by CoreLogic for September reveals that the midsize capitals continue to lead the race. Perth saw slightly greater gains in units as compared to houses, while Brisbane and Adelaide value increases were dominated by attached housing. This will once again show activity driven by affordability and first homebuyers. Hobart and Melbourne housing took a backward step during the year, as did units in Hobart and the ACT. Overall, however, these results should reinforce generally positive investor sentiment in locations where buyer demand continues to outstrip supply.
VALUE CHANGE BY HOUSING TYPE –REST OF STATE
State-wide figures illustrate the diversity of property market performance across regional Australia. Just look at the vast difference in performance between Victoria and the Northern Territory as compared to Western Australia, South Australia and Queensland. Comprehensive research really is required to unearth the right locations when maximising returns in regional markets.
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Source: CoreLogic
Source: CoreLogic
Data Deck
STRATIFIED VALUE CHANGE
AUSTRALIAN
It is essential to understand not only how property prices are performing overall, but also which price points offer the best potential. This stratified analysis of quarterly price movements by CoreLogic shows that in Perth, Adelaide, Brisbane, Hobart and Melbourne, property priced in the lower quartile delivered greater value gains over the three months to the end of September 2024. Portfolios heavily weighted towards these more affordable buy-in price points would have significantly outperformed portfolios comprising fewer assets with high buy-in prices.
Capital cities
RESIDENTIAL REAL ESTATE VALUE
The value of Australian residential property is tracked by CoreLogic monthly. This data confirms residential real estate is the largest asset class in the nation, being almost three times the size of superannuation, and almost three and a half times greater than listed stocks. According to the analysis, Australian residential real estate gained $200,000 million in total value over the three months to October 2024. 7
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SHARE MARKET VOLATILITY AND UNDERPERFORMANCE
The two charts below track ASX 200 price movements over a one-year and a five-year period. Both reveal share market investors have done reasonably well over these timeframes, but a deep dive demonstrates the risk investors take with this asset class.
There is extreme volatility with equities. For example, in the one-year chart, if you had invested $100,000 into the ASX 200 on 1st August 2024, just four days later on 5th August, you’d have lost around six per cent, or $6000 on your initial investment. While those who held shares throughout the five-year period might have been pleased with their 21.56 per cent gain, well-selected property assets in prime locations in Perth and southeast Queensland would have easily blitzed this result. Many real estate assets have in fact seen far greater than double that growth rate since 2019.
Source: Google Finance
POPULATION MOVEMENT
Total population change and net interstate migration figures are lead indicators of house price movements. Rising overseas migration to Australia continues to drive demand for housing. Jurisdictions with increasing populations often enjoy more buoyant property prices. Net interstate migration is also a compelling statistic which helps identify where people are moving from and where they’re resettling across the nation.
According to the latest ABS information, Australia’s total population grew by 2.3 per cent to reach 27.12 million people to the end of March 2024. The beneficiaries of population movements continue to be Queensland and Western Australia, with most residents moving away from New South Wales. According to the ABS analysis, the net immigration figure was 509,800 people for the year. While this was a minor reduction on previous figures, it remains well above the long-term annual average of approximately 230,000 persons net per year.
Source: ABS
ABS QUICKSTATS
ABS data helps pinpoint suburbs or regions with foundational price-growth potential based on a host of demographic data. To demonstrate, here is a very small portion of the available metrics in relation to one of this edition’s hotspots, Moonee Ponds in Victoria.
The information shows that the percentage of Moonee Ponds residents employed in professional services, management and administrative roles far exceeds both the Victorian and Australian figures. In addition, average household incomes in the suburb are well in excess of both statewide and national figures. Employment status information from the census also shows that the percentage of full-time workers per household again exceeds comparative data for the state and country.
Just this small sample of ABS data shows that Moonee Ponds is an upwardly mobile, gentrifying location with relatively high household incomes and secure workers making up the majority of its demographic. While these figures alone bode well for price growth in the years to come, they are just a small part of the qualitative research we rely on when selecting prime investment hotspots.
Source: ABS
Sydney’s rental vacancy rate remained stable at 1.6%, now with 11,360 rental dwellings vacant. Melbourne’s vacancy rate increased to 1.7%, with 8,796 vacant dwellings, reflecting a 0.1% rise from August.
New Property Listings rise 5.4%.
RENTAL VACANCY RATES
Canberra recorded the highest rental vacancy rate among the states and territories at 2.0%, showing a slight decrease from August. Perth saw its vacancy rate decrease to 0.6%, while Darwin’s vacancy rate increased to 1.0%. Adelaide maintained one of the lowest vacancy rates at 0.6%.Hobart’s vacancy rate declined to 0.8%
Key Points
• New property listings rise 5.4% to 77,622 dwellings
Low vacancy rates indicate a market where demand for rentals outstrips the available supply of rental housing, with any figure below two per cent deemed a tight rental market. SQM Research data shows the national residential rental vacancy rate remains exceedingly tight at 1.2 per cent. This is despite rental growth slowing as shown in the charts above. The vacancy rate has eased only moderately compared to 12 months ago when it was 1.1 per cent. You can expect rents to continue rising so long as vacancy rates remain in this low band.
1 October 2024
Vacancy rates in the CBDs were largely steady. Sydney recorded a 5.0% vacancy rate while Melbourne CBD recorded a slight decrease to 5.1% Brisbane CBD continued to experience strong demand with a low vacancy rate of 2. 4%.
Source: SQM Research
• Total listings fall 2.3% amid a 2.2% decline in old listings.
• Asking prices bounce 0.7% after falls over winter.
Total Listings
Total listings for the month have declined. According to recent data, September 2024 recorded a 2.3% decrease in nationwide residential property listings, bringing the total to 243,739 properties, down from 249,523 in August 2024. Various cities experience d notable changes in their listings compared to the previous month.
Source: SQM Research
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compare d to the total number of established rental properties. SQM considers this to be a superior methodology compared to using a potenti ally incomplete sample of agency surveys or merely relying on raw online listings advertised. Please go to our Methodology page for more information on how SQM’s vacancies are compiled.
Melbourne recorded the largest monthly decrease in total listings, falling by 3.5%. Brisbane and Perth followed with decreases of 6.5% and 4.8%, respectively. Adelaide and Hobart recorded decreases of 5.8% and 3.6%, respectively. Darwin experienced the most significant decline at 8.6%. Conversely, Canberra experienced a monthly increase of 1.5%, and Sydney saw a minimal increase of 0.7%.
PROPERTY LISTINGS
Rents
SQM Research data shows total monthly residential property listings fell nationally by 0.7 per cent this year, however the results across all capital cities did vary. Adelaide and Darwin saw their listings fall by greater that five per cent, while Sydney’s rose. Overall, however, sellers remain cautious about going to market. It is a continuation of the nervousness sellers feel about buying back into tight markets or being forced to rent. Tight listing numbers are a lead indicator of ongoing price growth.
Over the past month leading up to 12th October 2024, rental prices in capital city asking rents exhibited mixed trends. Total capital city advertised rents rose by 0.5%. Sydney experienced a 0.9% increase in combined rents, reflecting a turnaround from a fall in rents over winter Conversely, Melbourne recorded a 1.1% decline, indicating a softening in rental demand.
Over the course of a 12-month period, there was a 0.7% decrease in total listings. Sydney and Melbourne now record 7.9% and 7.2% more listings compared to this time last year. Conversely, Perth and Adelaide report 12-month decreases of 31.0% and 22.8%, respectively. Brisbane and Darwin also recorded decreases of 10.7% and 15.6%, respectively. On the other hand, Canberra experienced a notable 15.3% increase in listings, while Hobart saw a 5.0% rise.
Source: SQM Research
Source: SQM Research
BUILDING APPROVALS
Building approvals help inform experts on the balance between supply and demand. The latest ABS data reveals there’s been a slight bounce back in construction, however building remains well short of what’s required to meet demand. According to ABS analysis, total approvals rose 4.4 per cent in September 2024 (seasonally adjusted). While private sector house approvals rose 16.7 per cent across the year, dwellings excluding houses (i.e. attached housing etc.) fell by 12.2 per cent.
Consumer sentiment delivers a temperature check of the perceived economic strength of the nation. Positive confidence bodes well for property markets overall, although lower sentiment can highlight a counter-cyclical opportunity depending on other metrics. The most recent Westpac-Melbourne Institute Consumer Sentiment Index reflected a 6.2 per cent increase in October. This outcome has been driven in large part by expectations of an interest rate cut in the near future.
Sentiment rises 6.2% to half year high. expectations for sharply. pressures continue to progress remains slow. finances broadly year ahead. sentiment improves downbeat overall.
Jan-23
Consumer Sentiment Index
Sentiment Index
Sources: Westpac Economics, Melbourne Institute
Source: Westpac
The ‘time to buy a dwelling’ index rose 2.5% to 78. While buyer sentiment remains deeply pessimistic, this is highest read since the start of last year.
CONSUMER SENTIMENT BREAKDOWN
A breakdown of the sentiment analysis shows increased urgency among Australians around homebuying, and that consumers expect house prices to keep rising. According to the analysis, the Time to Buy a Dwelling Index rose 2.5 per cent which is the highest level since the start of last year. Meanwhile the Index of House Price Expectations rose 1.8 per cent to 153.2.
The state breakdown suggests local factors are also at play. The October month saw particularly strong gains in Queensland (+32%) and South Australia (+19%) where state governments have introduced additional assistance for first home buyers. In contrast, buyer sentiment fell sharply in Western Australia (–10.5%), where rampant price growth is seeing a rapid deterioration in affordability, and in Victoria (–8.9%) where an overhang of on-market supply and recent state government tax changes are the main issue.
Consumer Sentiment – October 2024
The Board’s discussions in November will be heavily influenced by the September quarter CPI update due on October 30. We expect this to show annual inflation tracking back to 3.5% on both headline and trimmed mean measures, with the six-month annualised pace of trimmed mean inflation also set to drop to 3%. While that’s unlikely to be enough for the Board to shift to an explicit easing bias, there should be enough additional comfort around the inflation outlook for the Board to start to relax its ‘vigilant’ stance on policy. As our October survey highlights, that will come as welcome relief for consumers even if actual progress on cost-ofliving pressures continues to be slow.
INTEREST RATES
Graph of the Cash Rate Target
This long-term chart shows cash rate movements since January 1990. While the cash rate rose over the 19 months to November 2023 to reach 4.35 per cent, it’s remained at this level since. Markets have become not only comfortable with rates at this level but are factoring in an almost certain cut in early 2025. The recently announced September Quarter inflation figure of 2.8 per cent reflects the first sub-three per cent result since early 2021. Continued downward pressure on inflation fuels arguments in favour of an imminent cash rate reduction.
Source: RBA
The
Source: Westpac
RENTAL GROWTH
National rents continue to rise, although the rate of growth has continued to ease in recent months. CoreLogic’s numbers reveal a 6.8 per cent increase in rents Australia-wide which is down from its peak growth rate in mid-2022 and lower than the 8.2 per cent rate seen in June. Not surprisingly perhaps, Perth has seen the most substantial increase in rents at 10.9 per cent. It’s also worth noting that despite the softer gains, most centres are maintaining annual rental growth above five per cent.
Annual growth in rent values slowed to 6.8% nationally, down from a recent high of 8.5% over the year
RENTAL RATES
Annual growth in rent values slowed to 8.2% nationally, reflecting an incremental easing in the rate of rental growth at a high level. Growth in rents over the month of June slowed to 0.4%, which is the lowest rate of monthly growth rate since September last year.
AUSTRALIA COMBINED REGIONALS COMBINED CAPITALS
change in rental rates - National Annual change in rental rates to June 2024 8.2% 7.1% 8.6%
With values rising 0.4% and rents up 0.1%, national gross rental yields compressed in September to 3.68%, the lowest national result since November 2023 (3.67%). Underneath the headline figure, yields in Darwin and Hobart inched higher over the month, while Melbourne yields remained steady at 3.67%. The remaining capitals all recorded a monthly decline in gross rental yields, ranging from one basis point (Canberra) to seven basis points (Perth).
Gross rental yields, September 2024
3.7% 3.5% 4.4%
Source: CoreLogic Source: CoreLogic
Source: CoreLogic
Gross rent yields have been fairly steady at the national level, hovering around 3.7% for the past 19 months. Rent yields are expected to compress slightly in the next few months, as the pace of capital gains has held slightly higher than the slowing monthly rental growth rate.
