Australia’s $10.9 trillion behemoth asset class—shares, which have a relatively modest market cap of $3.1 trillion—continued to power on in August with a 19th consecutive month of growth. Meanwhile, the latest data from Raine & Horne reveals that buyers are eagerly eyeing the powerhouse brick-and-mortar market and are eager to make their move. 

 According to CoreLogic, while the national median growth was a modest 0.5%, Perth (2%) and Adelaide (1.4%) led the way for the capital cities. Perth’s impressive real estate growth continued, with the WA capital reaching a median dwelling value of $785,250, surpassing Melbourne ($776,044) for the first time since February 2015. Adelaide, with a median dwelling value of $790,789, also finished ahead of the Victorian capital but still well behind Sydney, which clocked up a median value of $1,180,463. 

Given the strength of Australian real estate and a record-high savings war chest of $1.5 trillion held in the bank by Australian households, according to the Australian Prudential Regulation Authority (APRA)[i], it’s little wonder that demand is higher now than at the start of spring in 2023 and 2022. The latest data from Raine & Horne shows that open home attendance is up by 21% compared to the beginning of spring last year and nearly 38% higher than early September 2022.

On the flip side, supply needs help keeping pace with demand. Raine & Horne report that appraisals are down nationally by -10.59 % compared to the start of September 2023 and listings by -10.88 %. Angus Raine, Executive Chairman of Raine & Horne, noted that while many markets experienced a very cold winter, which impacted sales activity, the arrival of spring will bring a surge in appraisals and listings as the weather heats up.  

“Given the robust buyer demand, now is a fantastic time for vendors to consider selling a property, as competition from other listings is currently lower than later in spring. This is especially advantageous for those planning to move into a new home in time for the start of summer,” Angus said. 

Reflecting on the strong buyer demand, Angus draws parallels to the COVID-19 years. “We witnessed the impact of overflowing household savings during COVID-19, with much of that money being funnelled into real estate. Due to recent concerns about interest rates, many buyers have delayed their real estate plans, but it now appears that pent-up demand is set to unleash a significant spring selling season rush, carrying momentum through to Christmas and even into the new year.”

The strong demand for quality real estate is especially evident in the rapidly emerging Adelaide market, which now boasts Australia’s second-highest median dwelling price. Open home attendances in Adelaide are currently 32.34% higher than at the start of spring 2023, underscoring the SA capital’s growing real estate appeal. Yet, appraisals and listings are significantly lower than last year.

James Trimble, General Manager, SA Raine & Horne, adds, “The key is to act quickly before more listings hit the market. Early September typically sees fewer properties on the market for sale and a disproportionate number of buyers to sellers. So right now, vendors considering a sale have more chance of achieving a stronger result.”

For an obligation-free appraisal of your home’s or investment property’s value for a spring sale, contact your local Raine & Horne office today.

 
[i] https://www.apra.gov.au/monthly-authorised-deposit-taking-institution-statistics