Perth Property Price Surge vs Melbourne Market Turn: What’s Happening in Australia’s Housing Market?
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What are the current trends in Australia's property market?
It's the Real Estate Podcast brought to you by ANZ Home Loans for financial well-beings. Now, if you want to get in touch, you've got two options. The first, you can leave a recorded message. Super, super easy. The link is below. And the second way is our trusty email address, myrealestatepodcast at gmail.com. We would love to hear from you. And Australia's Final Pockets, of true housing affordability are disappearing and disappearing fast. Not long ago, there were at least 10 capital city suburbs where you could still buy a house for under 500 grand. Today, Domain tells us that the number has shrunk to just five. Those last lower priced suburbs are being discovered and discovered quickly. And once demand arrives, prices tend to move much faster than people expect.
The remaining sub $500,000 suburbs are scattered across the country. Three are in Tasmania. Good morning if you are listening to us from Tasmania this morning. Those three suburbs are New Norfolk, Primrose Sands and Risdon Vale. Russell Island in Queensland is there, and as well as Berrimah, which is in Darwin. That is rounding off the list, showing just how limited affordability options have become throughout Australia. Yeah. Yeah, absolutely. Listen, we have after probably one of the more brutal bear markets for any of the capital cities in Australia, our market has really sprung to life kind of 18 to 24 months ago with a lot of the freestanding houses, you know, pulling anywhere from kind of 30 to 60% gains in the last couple of years.
Danny, let's come to you because that's Berimar, but I'm sure that there are a couple of other suburbs in Darwin that you want to talk to and perhaps give a little bit of a green light to those listening. Yeah, absolutely. So, you know, there are still pockets in Darwin, including suburbs like Coconut Grove, which is looking at a medium price for two bedroom units at $450,000. pulling in a decent rental yield. You've also got Milner as well. And there's quite a few pockets still in Palmerston, which is the neighboring city of Darwin, even though it's only eight kilometers away. And just in terms of the prices around that 500k, how busy is it at the moment? Very, very busy. So, you know, a lot of the investors are now getting priced out of the house market because the prices have just soared up so quick in just a short space of time.
They're now pivoting to the unit sector. And the unit sector has had considerable growth in 12 months already. You know, majority of the purchases from the investors had been focused on housing, but now it's the units that still provide a really high rental yield in that sub 500 mark. I guess you're too young to remember that Barbie launch, eh, back in 1959. Yeah, a bit before my time, Craig, but my daughter still very much enjoys playing with them to this day. Oh, come on, I'm sure you took your daughter to go and see that movie, eh? I did manage to avoid that and my wife took her along. Fair enough. Millions of dads did go. All right, let's have a look at Victoria. We're talking about this, which has introduced some of the toughest property taxes in the country, high land tax and a 4% absentee owner surcharge and expensive rental compliance upgrades.
It has made many investors pause, but some are starting to get back into the market. And it's been a gradual thing, Craig, over the past sort of four or four years that some of these changes have occurred. And it's definitely led for a period of time, a number of investors leaving the market, particularly those that have been in place for a number of years, felt as though they weren't getting the capital growth that they perhaps expected and wanted. And then when some of these extra lags came on top, so that the extra, the higher land tax, the extra expectation on the minimum standards from a rental perspective came in, it made it quite difficult to continue to hold property, especially then with you put the interest rate rises that came about a few years ago.
It was sort of almost like the perfect storm and it made it quite difficult.
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