– TODAY’S MARKET IDEAL FOR NEW INVESTORS

While Australian home values are still falling, the decline in January was the smallest monthly drop since June last year. That suggests new demand is supporting prices.

The second big element making this market a great time for investors is strong rental increases. This will certainly help with your loan repayments as rates rise. You’ll also have little trouble finding a great tenant due to strong demand fuelled by a chronic undersupply and returning migrants. Growth in rents is particularly strong in the big capital cities, with rents up by as much as 30% in inner Melbourne and 20% in inner Sydney over the past 12 months alone, according to CoreLogic. Rental growth has been strongest among apartments, the typical stock of investors.

This is mainly because local renters are looking for cheaper options in an inflationary economy, and migrants –particularly students – tend to prefer apartments. At a citywide level, CoreLogic data shows East Coast apartment rents rose by 15.9% across Sydney, 15.3% across Brisbane, 13.6% across Melbourne, and 8.1% across Hobart over the past year. House rents are up 12.5% in Brisbane, 8.9% in Sydney, 6.7% in Melbourne, and 5.2% in Hobart. The data indicates that upward pressure on rental values is likely to remain until supply improves. CoreLogic says rental listings are at record lows for this time of year. East Coast vacancy rates are 1.6% in Sydney, 1.2% in Melbourne, 1.4% in Brisbane, 1.5% in Hobart and 2.2% in Canberra. To put that into perspective, balanced supply and demand sits at about 3%. Where prices have dropped the most

I think the big East Coast capital cities will lead the market rebound next year, so let’s take a look at where home values have fallen the most during the correction in Sydney, Melbourne, and Brisbane.

CoreLogic has released some new figures showing the biggest falls in suburban home values over the past 12 months. I’ll just point out here that many of these areas experienced the highest gains

co MM unity Givebac K

Over the past six years, McGrath Estate Agents Coast & Hinterland has proudly donated more than $250,000 to worthy charities and organisations through our Community Giveback Program.

Each month we are giving our valued clients the opportunity to nominate a beneficiary to receive a $100 donation on their behalf. This month the two chosen organisations were:

Hear And Say

during the pandemic boom, so that’s why the correction is more acute.

In Sydney, the areas that have experienced the largest price declines are Pittwater (-23.5%), Warringah (-21.4%), Manly (-21%), Eastern Suburbs – North (-20.1%) and Leichhardt (-18.4%).

In Melbourne, prices have fallen most in Bayside (-14.3%), Nillumbik – Kinglake (-13.8%), Essendon (-13.7%), Darebin – North (-13.6%) and Banyule (-13.3%).

In Brisbane, it’s Chermside (-13.6%), Nundah (-12.9%), Nathan (-12.2%), Holland Park – Yeronga (-12%) and The Gap –Enoggera (-11.5%).

Now compare all this good news to the stock market, which is incredibly volatile these days due to the threat of a global recession. Australian property sure looks like a safer investment to me.

Katie’s passion for the real estate industry is evident with nearly a decade’s experience in both property management and property sales. Her past experience has taught her the value of clear communication and she prides herself on keeping clients fully informed. Katie is known for her excellent communication skills and listening ability. Equally as imperative, she endeavours to deliver the utmost care and attention to everything she does with a knowledgeable, hands-on approach. Katie ensures all issues are smoothly and quickly resolved no matter how complex or trivial and strives to exceed her customers’ expectations. When she is not working, Katie enjoys renovating her home, spending time at the family farm and relaxing.

If you would like to speak to our team regarding buying, selling or renting, we would be delighted to assist you further. For leasing and new client enquiries please contact Rebecca Hill - 0488 771 626. For all sales enquiries please contact Cassi Nuske – 0415 304 127. We look forward to being of service for all of your real estate requirements.