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1300 766 791 contactus@freedompropertyinvestors.com.au
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Disclaimer: Information contained herein is gathered from sources we deem to be reliable however warrant no guarantee as to the accuracy of third party data. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. All rights reserved.
November 2021
Welcome Thank you for reading this report. Freedom Property Investors is not a property company. We are a community of investors accessing the hidden market of positive cash-flow properties located in high growth locations across Australia. Led by Scott Kuru and Lianna Pan, two of Australia’s most successful property investors, we aim to provide our members with investment properties that outperform market averages for both capital growth and rental yield. Lianna Pan is one of only 3,000 qualified Actuaries in the country, and together we have perfected a detailed methodology
covering all fundamental aspects affecting the residential property market. Spending tens of thousands of dollars on our research, we also employ a full-time research team with access to property specific data not easily accessible to the everyday investor. Utilising a wide team of hundreds of experts around Australia, we work toward a common goal of helping create financial freedom for our members through property. We hope you enjoy this report and we look forward to helping you leverage our data insights to achieve your financial freedom.
Lianna Pan
Scott Kuru
Founder & Director of Research
Founder & CEO
National housing values recorded yet another month of growth in October, rising 1.5% amid lessening restrictions and border re-openings. Although the monthly rate of growth of Australian property has eased slightly since September, current low interest rates are continuing to support demand, along with tight supply levels and increasing buyer sentiment. Throughout 2021, it has been clearly evident that property is truly one of the best and safest investment vehicles we are afforded in Australia. Property values nationally are up over 21% from last year, the fastest pace since 1989. Regional prices have also performed extremely well climbing 24% following the mass pandemic-driven migration to the country.
04
Can the property market keep climbing?
Brisbane has been a standout performer and is currently one of the fastest growing markets with housing values up 2.5% in October. According to CoreLogic, the median property price in Brisbane is currently sitting at $642,097 representing an increase of over $16,000 in just one month. With strong growth prospects and a positive future outlook, Brisbane is shaping up to become a global city in time to receive the 2032 Olympic torch. Increased infrastructure spending and development are already seeing numerous areas boom off the back of what is an already buoyant market.
Change in Dwelling Values as at October 31, 2021 Month
Quarter
Annual
Total Return
Median Value
Sydney
1.50%
5.24%
25.23%
28.22%
$1,071,709
Melbourne
0.99%
3.01%
16.37%
19.22%
$780,303
Brisbane
2.54%
6.50%
22.30%
27.07%
$642,097
Adelaide
2.00%
5.86%
20.07%
25.08%
$543,265
Perth
-0.11%
0.65%
16.37%
21.42%
$526,625
Hobart
2.00%
6.66%
28.06%
33.75%
$678,170
Darwin
0.42%
0.41%
19.28%
26.15%
$490,236
Canberra
1.94%
6.18%
25.52%
30.12%
$864,909
Combine capitals
1.38%
4.41%
20.82%
24.24%
$771,264
Combined regional
1.87%
5.28%
24.29%
29.67%
$514,308
National
1.49%
4.60%
21.58%
25.35%
$687,339
Source: CoreLogic
Can the property market keep climbing?
05
Westpac went so far recently as to predict that Brisbane prices will increase a further 10% in 2022. We certainly agree that there will be greater overall growth to come for this region. In fact, because of the current supply and demand imbalance, we have pinpointed several key areas which are set to generate even more enormous increases in value. Just recently we highlighted one area in the Southeast growth corridor of Brisbane where property values had increased over $100,000 in under 12-months. This is just one of many examples of areas that our research identified for us prior to this recent surge. Because of this, we were able to position our members to benefit from the current property boom. Many of whom are now able to use the equity gained to purchase another property elsewhere. Surges in demand for property can be seen in many regions around Australia. Persistently low levels of property listings continue to be a key factor in the upwards pressure on property prices this year.
October finally saw an increase in the amount of new listings hitting the market, attributed largely to the end of lockdowns. While you may have also seen news headlines recently discussing the possibility of inflation, the RBA has again kept rates on hold which we expect to be the case still for some time yet. Property investors need not be worried. Australian property is considered one of the safest investments for many reasons, and in times of inflation, property investors are often the ones to benefit. Moreover, it is unlikely that our Reserve Bank will change its position from “not increasing the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range”. Low levels of housing supply across Australia will be an important topic in the upcoming 2022 Federal election. So too will be migration and wage growth. The reason these topics will be of interest to property investors is the impact they may have on any likelihood of inflation, or of the RBA increasing rates in the short term.
National Stock Stock on National on Market Market 400,000
Stock on Market (dwellings)
300,000
200,000
100,000
No
Se p
-20
18 v-2 01 8 Ja n-2 01 9 Ma r-2 01 9 Ma y-2 01 9 Ju l-2 01 9 Se p-2 01 9 No v-2 01 9 Ja n-2 02 0 Ma r-2 02 0 Ma y-2 02 0 Ju l-2 02 0 Se p-2 02 0 No v-2 02 0 Ja n-2 02 1 Ma r-2 02 1 Ma y-2 02 1 Ju l-2 02 1 Se p-2 02 1
0
Source: SQM Research
06
Can the property market keep climbing?
NationalVacancy Vacancy Rate National Rate
Vacancy Rate (%)
3.0%
2.0%
1.0%
0.0%
Source: SQM Research Despite signs of a cooling market, there remains many opportunities for investors to capitalise and add to their portfolio. With so much more expected growth still to come, investors are finding immediate profit in areas where rental demand is exceeding supply. According to Domain, the majority of markets across the country remain in favour of landlords, as supply continues to fall and more people battle for fewer rental listings. In October, the national vacancy rate fell to 1.5 per cent which is the lowest it has been for a number of years. Vacancy rates across the country have been trending lower since the beginning of the year and we anticipate that this will continue for the remainder of 2021. The upwards pressure on rents in areas with a low vacancy rate, mean that property investors can benefit from both increased rental income as well as capital growth.
Contact our friendly team today:
By identifying which areas are most in demand, and the reasons for that demand, are how we are able to make such accurate predictions when it comes to investing in property. We employ a team of Researchers and Data Scientists that are constantly monitoring hundreds of growth regions around Australia. Because of this, we are able to gain unique insights into which areas will perform greater than others. It’s why we’ve been so successful over the last decade, and why we now have over 5,000 members in our investor community who leverage our research and data in order to purchase safe investment properties. Our team are experts in timing the market and often see opportunities well ahead of time. If you’ve been considering your first investment, or perhaps the next property for your portfolio, speak to our knowledgeable and friendly team today.
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Can the property market keep climbing?
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