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"Regional markets remain the relative outperformers. Values outside the capitals gained 0.6 per cent for the month and 5.3 per cent annually, compared with 0.2 per cent and 2.6 per cent inside the metropolitan belts. For homeowners considering a move, that divergence is preserving equity in many country centres, while first-timers may still find entry points in areas where employment growth is solid.
Houses again beat units. Across the capitals, free standing dwellings rose1.1 per cent over the past three months, more than double the 0.5 per cent lift for apartments. Yet not every city is forging fresh peaks. Sydney values lie 1.1 per cent below their September 2024 apex and Melbourne sits 5.4per cent under its 2022 summit, whereas Brisbane, Adelaide and Perth are establishing new highs. Such nuance matters when gauging negotiating leverage.
Policy and interest rates are still steering sentiment. February’s 25-basis-point cut brought the first spark of renewed activity, and economists tip another reduction later this month. Election-season pledges—including a broader 5 per cent deposit guarantee and talk of tax support on mortgage repayments—signal that whichever party prevails will court first homebuyers. That support will be welcome. The dwelling-value-to-income ratio sits at a record-matching eight; servicing a new median-priced loan consumes roughly 50 per cent of gross household income. Building a 20 percent deposit now averages 10.6 years, and the typical renter parts with 32.9per cent of pre-tax pay. These statistics underscore why many savers still feel stuck on the sidelines.
Supply constraints compound the stress. Dwelling commencements fell another 4.4 per cent in the December quarter and sit 16.5 per cent beneath the decade norm, while construction costs ticked 0.4 per cent higher through March. Limited new stock is likely to prop up values even if demand softens.
For landlords and “rent-vestors”, conditions are tilting more favourably. National rents rose 0.6 per cent in April, yet annual rental growth has slowed to 3.6 per cent. Higher rents against steadier prices have lifted gross yields to 3.73 per cent nationally and 4.41 per cent in the regions, the best in two years.
Practical takeaways? Existing owners could review loan terms before any further Reserve Bank move and weigh the merits of refinancing versus upgrading. Aspirants should keep budgeting realistic, watch for government initiatives as details firm, and stay open-minded about units or well-connected regional centres where the initial outlay is lower. Allow a safety buffer in repayment plans, as interest rates can turn upwards again, and seek professional financial advice before committing. Balanced expectations now will help households cope with inevitable market shifts ahead."
Monthly change in capital city home values
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