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H OM e VALU e S IN c H HIGH er NAt IONALLY AS G
r OW
t H LOS e S
MOM e N t UM
BY CORELOGIC
Dwelling values increased a modest 0.4% in the first month of spring, broadly in line with the monthly change in July and August at 0.3% as momentum continues to leave the market.
Nationally, housing values rose 1.0% in the September quarter, the lowest rise in the national Home Value Index (HVI) over a rolling three–month period since March 2023 when the market was moving through the early phases of the current upswing.
Demonstrating the diversity of housing conditions, four capital cities recorded a fall in dwelling values through the September quarter, led by Melbourne where values were down -1.1%. Canberra, Hobart and Darwin also recorded declines over the quarter.
Sydney home values have continued to rise however the 0.5% increase through the September quarter was the lowest growth result since the three months ending February 2023 when values were down -0.3%.
The mid–sized capitals, which have led the pace of capital gains through most of the upswing, are also losing momentum, although growth continues to significantly outpace other capitals. Perth values
were up 4.7% through Q3, easing from 6.2% in the June quarter. The quarterly gains in Adelaide look to be topping out with a 4.0% rise through the quarter and Brisbane’s quarterly growth has eased back to 2.7%, the lowest rise over a rolling three–month period since April last year.
The slowdown in the pace of growth comes as home owners increasingly look to sell. The flow of new listings coming onto the market was tracking 3.2% higher than a year ago nationally to be 8.8% higher than the previous five–year average for this time of the year.
“The rise in real estate inventory is a seasonal trend, with spring and early summer one of the busiest periods of the year for selling,” said Tim Lawless, CoreLogic’s research director.
“However, the flow of freshly advertised housing stock hasn’t been this high at this time of the year s ince 2021.”
Alongside the rise in real estate listings, we have also seen vendor metrics soften, signalling weaker selling conditions. Auction clearance rates have wound back to the low 60% range across the combined capital cities, which is about 4 percentage points below the decade average. Similarly, homes sold by private treaty are staying on the market longer, with a median of 32 days to sell nationally through the September quarter, up from 29 days in the June quarter and 27 days a year ago.
Affordability constraints and reduced borrowing capacity continue to support stronger conditions across housing markets with lower price points. Across the combined capitals, lower quartile dwelling values have increased by 12.4% over the past twelve months compared with a 3.8% rise in values across the upper quartile. This trend is evident, to different extents, across every capital city except the ACT and Darwin,
which are also the most affordable markets after adjusting for local household incomes.
Similarly, six of the eight capitals have seen unit values rise by more than house values, or in the case of Melbourne, record a smaller decline, over the September quarter.
Growth conditions across regional housing markets have also eased, with the quarterly trend in the combined regionals index reducing from 2.3% in three months ending April to 1.7% in the June quarter, and more recently to 1.0% over the September quarter. Similar to the capital city trends, growth across the regional parts of WA (+3.6% Sep quarter), SA (+2.3%) and Queensland (+2.0%) are leading the regional housing trends.
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Image: Ronnie George on Unsplash
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M e DIA SPIN O r re AL c HANG e ? HOW t H e N e GAt IV e G e A r ING D ebAte IMPA ct S
YOU r INV e S t M e N t S.
BY CHRIS GRAY, CEO, YOUR EMPIRE
Last month, the Australian media spent considerable time discussing the issue of negative gearing, igniting a debate that captured headlines across the country. The speculation was sparked by questions directed at politicians, with journalists probing whether negative gearing was being reviewed ahead of the next election. While this created significant buzz, it is crucial to recognize that much of the conversation may have been blown out of proportion.
MEDIA MANIPULATION OR GENUINE CONCERN?
A closer examination of the media's approach reveals that journalists were attempting to lead politicians into making revealing statements that could fuel a broader story. However, the responses from political leaders were largely consistent: Treasury constantly reviews a wide range of policies and models as part of its regular operations. This includes analysing negative gearing, among many other issues. But there was no explicit indication that changes
to negative gearing were on the immediate agenda.
This situation exemplifies how the media can sometimes amplify an issue to generate more attention, even when there is little substantial news. Given that media outlets rely on engagement – whether through television, print, or online platforms – creating a story, even from limited information, ensures more viewers, readers, and clicks. As consumers of news, it’s essential to critically assess the sources of information and be cautious of
sensationalist reporting, particularly when it comes to significant economic issues like the property market.
NEGATIVE GEARING: THE REAL STORY FOR INVESTORS
Turning to the actual implications of negative gearing, it’s vital to understand its purpose and how it fits into property investment strategies. Negative gearing allows property investors to offset losses, such as when rental income doesn’t cover the full mortgage and other property–related expenses, against their taxable income. While this tax benefit can be helpful, it should never be the primary reason to invest in rea l estate.
Successful property investment is fundamentally about long–term capital growth. For instance, an investor who purchases a property
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for $1 million aims for that property to appreciate over time, ideally doubling in value to $2 million over a span of seven to fifteen years. Whether or not they receive a tax deduction due to negative gearing should be viewed as a bonus, not a driving force behind the investment decision. The real wealth in property investment is built through capital appreciation – seeing that $2 million property one day grow to $4 million.
The media often frames negative gearing as a central factor in the property market, but experienced investors know that the key to success lies in choosing the right assets and holding them for the long term. While the loss offset provided by negative gearing can soften the blow of early cash flow shortfalls, it pales in comparison to the potential gains from capital growth over time.
THE bIGGER PICTURE FOR INVESTORS
Lookin g forward, it’s clear that the property market will always be subject to political scrutiny and potential policy shifts, including around negative gearing. However, the fundamentals of investing in real estate remain unchanged. Investors should continue focusing on long–term strategies, building wealth through capital gains, and maintaining a clear understanding of why they are investing in the first place.
Whether negative gearing stays or goes, those who invest wisely, with a view to long–term value, will likely remain ahead. The lesson here is to not be distracted by media hype or short–term tax benefits, but to remain committed to the bigger picture – building wealth through smart property investments over time.
Buyers are out of lockdown, are keen to see wh at properties are available,
which could be an even higher demand than we’re seeing already.
Many agents may not have hit their target revenue for 2021 and won’t want to go on holiday if there’s deals to be done. They certainly won’t want their competition to be selling what could be theirs.
A b OUT THE CONTRI b UTOR
Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for time–poor professionals – searching, negotiating, renovating and managing property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry figures. Chris is a qualified accountant, buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @ChrisGraySydney
D e SIGNING t H e P er F ect SPA ce
As the days get warmer, many of us will want to make the most of our outdoor areas. Creating an inviting outdoor entertaining space can transform your backyard or balcony into a beloved gathering spot for friends and family. With the right design elements, you can ensure your outdoor area is not only functional but also aesthetically pleasing. Below are some tips to help you design the perfect space for outdoor entertaining.
1. DEFINE THE PURPOSE
Before diving into design elements, consider how you intend to use the space. Are you planning to host barbecues, intimate dinners, or larger parties? This will influence the layout, furniture and amenities you need. For example, a casual barbecue might require a grill, outdoor seating and picnic tables, while a more formal dinner may benefit from a dining table, elegant lighting and a more refined atmosphere.
2.
CHOOSE THE RIGHT LOCATION
Selecting the ideal location is crucial. Look for a spot that offers a balance of sun and shade. Proximity to your home is also important for easy access to the kitchen and indoor facilities. Additionally, consider factors such as privacy and noise levels from neighbours or streets. A sheltered area can provide a sense of intimacy and protection from wind or unexpected rain.
3. INVEST IN COMFORTAbLE FURNITURE
Comfortable seating is essential for any entertaining space. Opt for weather-resistant materials like aluminium, teak or synthetic wicker. Cushions can enhance comfort, but make sure they are made from outdoor fabric that withstands the elements. Create different seating arrangements – lounge areas for casual gatherings, dining sets for meals and maybe even a fire pit area for cosy evenings.
4. CREATE A FOCAL POINT
A great outdoor space benefits from a focal point that draws the eye and anchors the design. This could be a stunning outdoor fireplace, a beautifully designed water feature, or an elegant pergola adorned with climbing plants. A focal point not only enhances aesthetics but also provides a conversation starter, making your space more engaging.
5. INCORPORATE LIGHTING
Lighting is key to creating a welcoming ambiance as the sun sets. Use a combination of task lighting, such as string lights or lanterns and ambient lighting, like wall sconces or ground-level LED lights. Consider solar-powered options for an eco-friendly choice. Well-placed lighting can highlight pathways, enhance your focal point, and create a cosy atmosphere for evening gatherings.
6. ADD SHADE SOLUTIONS
To ensure your outdoor space is comfortable in various weather conditions, think about incorporating shade solutions. Pergolas, awnings or large umbrellas can provide relief from the sun. Consider using climbing plants or fabric canopies to add both shade and visual interest.
7. INCORPORATE GREENERY
Plants and landscaping can add vibrancy to your outdoor entertaining space. Use a mix of potted plants, flower beds and trees to create a lush environment. Herbs can also serve a dual purpose – adding greenery and providing fresh ingredients for your meals. Choose plants that are suitable for your climate and require minimal maintenance to keep the space looking its best.
8. PERSONALISE YOUR SPACE
Finally, infuse your personality into the design. Use decorative elements that reflect your style – colourful cushions, unique outdoor art or themed decor. Personal touches create a warm and welcoming environment that makes your guests feel at home.
By thoughtfully considering these elements, you can create a beautiful outdoor entertaining space that
will be the envy of friends and family. With comfort, style and functionality in mind, you can create the ultimate destination for gatherings, making lasting memories under the stars.
Image: Spacejoy on Unsplash
S HOULD YOU re NOVAte O r D etONAte ?
You love your current location: you have great neighbours, you’re close to family and friends, it’s an easy commute to work, and your local cafe has great coffee... But you don’t love the home you live in. So, what do you do?
When faced with revamping your home, you have two main options: renovating or knocking it down and rebuilding. Both paths can help you achieve your dream home, but there are things to consider to determine which option is right for you.
One solution is a knockdown rebuild (KDRB) – or ‘detonating’ – which offers the freedom to design a home from the ground up.
It’s proving popular too, with KDRBs accounting for one in four new homes built in Australia, according to Housing Industry of Australia chief economist, Tim Reardon.
The NSW Government also launched an online tool to entice KDRBs amongst new homebuilders, making it an easier option to explore and opening up the option of building a duplex and perhaps capitalising on your land by renting out one home.
Alternatively, renovating is also appealing as you can make changes to your existing home while preserving its original foundation and sentimental value.
This could be ideal if you love your current home’s character and location but need to update or expand it to better suit your lifestyle.
IS IT CHEAPER TO RENOVATE OR REbUILD?
From hidden costs to lifestyle choices, several factors come into play when choosing between renovating and rebuilding your home.
“Rebuilding offers the advantage of a fresh start with a home that is entirely customised to your needs and style,” Simonds chief of sales and marketing, Shaun Patterson, said.
“On the other hand, renovations might be limited by the existing structure and layout.” While renovating is appealing, it often comes with surprise costs that can creep up during the process. This may include things like termite damage or asbestos.
“When homeowners embark on the renovation path, they need to be prepared to dedicate a significant amount of time to obtaining quotes
from builders and coordinating trades for their project,” Patterson said.
“Alternatively, when you choose to rebuild with an [established] builder… you have the expertise of drafts people, interior designers and dedicated project managers all at your fingertips.”
STEPS TO HELP YOU DECIDE
As with all property d ecisions, the first step is to do your research and weigh up all your options to find out what suits you. Here are a few key points to help you decid e.
1. TALK TO THE EXPERTS
Don’t rely on the opinions of friends and family. Get expert advice to weigh up whether to renovate or detonate. You can also look at websites to find builders with runs on the board, good reviews and testimonials – and maybe a few awards, too.
2. THINK AbOUT THE FUTURE
Think about the hom e you’ll require in the future. Will you need more space to accommodate children, a home office or an age ing parent?
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“Will this house, even if it’s renovated, give you the space and amenities you will need further down the track?” Builders Coach founder, Kurt Hegetschweiler, said.
“The benefits of a knock-down rebuild are that you can design a new home that you know will suit your lifestyle and needs.”
3. CHECK IF YOUR HOME HAS GOOD bONES
Renovating makes sense if your home only needs small changes, Hegetschweiler said.
“If your home is double-brick or spacious, you might only need a new kitchen or bathroom,” he said.
“If you’re in an older home and decide to renovate by adding bits on, and mixing and matching old and new, that might affect resale value later.”
4. CONSIDER CONVENIENCE AND PEACE OF MIND
Renovating or detonating both come with headaches, but renovating may bring an extra level of stress.
“During renovations, homeowners often encounter challenges such as unexpected structural issues, like hidden water damage or outdated wiring, which can lead to delays and additional costs,” Patterson said.
“Renovations can also be disruptive, especially if the family remains in the home, as daily life is impacted by noise, dust, and limited access to certain areas.”
If you knock down and rebuild you know what to expect and what you’ll end up with, whereas renovating can bring unwelcome surprises, especially in older homes.
“In older homes, you may need to redo plumbing or electrical work, which can be expensive. Generally, a lot more can go wrong when renovating compared to knocking down and rebuilding,” Hegetschweiler said.
While KDRBs allow homeowners to start fresh, they come with their own set of challenges, such as needing temporary accommodation, as the site is typically unliveable during construction.
“Rebuilding also requires more upfront planning, as homeowners
must make a multitude of design decisions, from layout to finishes, which can be overwhelming and time-consuming,” Patterson said. However, timelines are more reliable.
“Despite being a larger undertaking, a rebuild generally follows a more predictable timeline and is less prone to delays from unexpected issues, making it a manageable, structured process overall.”
Originally published on realestate. com.au. Written by Vivien Topalovic, Property Journalist
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S UP er ON PAID
PA re N tAL L e AV e
BY REI SUPER
A landmark step towards closing the gender super gap In a significant move towards closing the gender superannuation gap, the Australian Parliament has passed legislation to pay super on Commonwealth Paid Parental Leave (PPL). This landmark decision, which passed through the Senate without opposition, will come into effect on 1 July 2025.
WHAT DOES THIS MEAN FOR YOU?
This new law will be a game–changer for many REI Super members, particularly women. The latest Workplace Gender Equality research showed that women's superannuation balances at retirement are 23.4% lower than those of men¹. A large component of this disparity is due to career breaks for raising children, during which no super contributions are made. The new legislation aims to address this imbalance by ensuring that super is paid on PPL, providing a much–needed boost to retirement savings during these crucial periods.
MAXIMISING YOUR SUPER DURING PARENTAL LEAVE
While the new law is a positive step forward, there are several other strategies you could employ to continue growing your super:
VOLUNTARY CONTRIbUTIONS:
Consider making voluntary contributions to your super account. Even small, regular contributions can make a significant difference over time.
SPOUSE CONTRIbUTIONS:
If your partner is working, they can make contributions to your super account. This not only boosts your super but may also provide tax benefits for your partner.
GOVERNMENT CO–CONTRIbUTIONS:
If you’re eligible, take advantage of the government co–contribution scheme. For every dollar you contribute, the government may contribute up to 50 cents, up to a maximum amount.
SALARY SACRIFICE:
If you’re planning your parental leave in advance, consider setting up a salary sacrifice arrangement with your employer. This allows you to contribute a portion of your pre–tax salary to your super, potentially reducing your taxable income.
SUPERANNUATION SPLITTING:
REI Super and some other funds allow you to split certain types of your pre–tax super contributions with your partner. This can be particularly beneficial if one partner is taking time off work.
For more information on these simple steps to grow your super, visit our website
LOOKING AHEAD
The introduction of super on PPL is another step towards achieving gender equality in retirement savings. At REI Super, we are committed to supporting our members through every stage of their lives, including parental leave. We encourage you to explore the various ways to maximise your super contributions and take full advantage of the new legislation once it comes into effect.
The information provided is general information only and is not health or medical advice. If you have a health or medical concern, please seek professional medical advice immediately. 360Health services are provided by a third party, Teladoc Health Pty Limited.
