Real Estate Institute of Australia

As Australia’s median house price exceeds $1 million, the affordability gap widens. In Sydney, homeowners are dedicating 58% of their income just to cover the mortgage, compared to the national average of 48%. It’s a stark reminder of the ongoing challenges in our property market.

Australia’s typical house price has officially surpassed $1 million, with a $70,000 jump over the past year, reaching a national median of $1.049 million. While Sydney remains the priciest market, cities like Brisbane, Perth, and Adelaide have seen significant price hikes, making the dream of homeownership even more challenging for many. 🏠 For those already in the market, it’s a milestone; but for potential buyers, it’s a reminder of the growing affordability gap. Industry experts emphasise the need for more housing supply to ease the pressure and make homeownership a reality for more Australians.

As of 30th September 2024, the latest rental law changes have come into effect, and it’s crucial for all property managers and landlords to be aware of the key updates that could impact your rental practices. Here are some important updates to keep in mind: 👉 Reletting Costs for Break Leases The calculation for break lease reletting costs has changed. The maximum charge is now based on the amount of lease remaining—no more charging a full week’s rent + GST. 👉 Utility Charges Must Be Passed On Within 4 Weeks Landlords are now required to pass utility bills to tenants within four weeks of receiving the bill. Ensure you're complying with this timeline to avoid any complications. 👉 Maximum Bond Limits Landlords cannot request more than four weeks’ rent for a bond. 👉 Bond Claims Require Evidence Within 14 Days If you plan to make a bond claim, you must provide evidence (receipts, quotes, or unpaid rent) within 14 days. The next round of rental reforms will take effect on 1st May 2025, so stay ahead of the game!

The combination of record migration and policy debates around negative gearing and capital gains tax is leading many property investors to rethink their position in the market. REIA President Leanne Pilkington warns that these policy discussions could accelerate the exodus of investors, reducing rental supply and worsening affordability challenges for renters and first-time buyers alike. While the value of new investor loans rose to $11.7 billion in August, Pilkington explained this reflects price growth rather than a significant influx of new investors. To restore balance, she suggests policies should focus on encouraging housing supply to make sustainable affordability achievable for everyone.

The latest ABS data shows promising signs for inflation, with the Consumer Price Index (CPI) up only 0.2% in the September quarter. This brings the annual rate down to 2.8%—its lowest level since 2021 and within the RBA’s target range. REIA President Leanne Pilkington noted that inflation across several measures continues to decline. The trimmed mean, a key metric that excludes the most extreme price changes, fell to 3.5%. This marks seven straight quarters of lower inflation—a steady trend since December 2022. 📉 With inflation stabilising, borrowers might see the RBA consider rate cuts, potentially easing pressure on repayments.

The latest ABS data shows a record surge in migration, with 356,940 new arrivals from January to August 2024—far outpacing housing approvals, which reached only 13,991 in August. This mismatch is deepening Australia’s housing shortage, leaving both new arrivals and locals struggling with skyrocketing rents and limited availability. REIA President Leanne Pilkington stressed the urgency of the situation, noting that "the lack of adequate housing supply combined with high migration has created an unsustainable situation." 🏘️ Without increased approvals and supply solutions, the pressure on housing affordability will only worsen.

ABS data from the September 2024 quarter shows price changes across several sectors. While inflation has eased overall, certain areas continue to see increases: 👉 Recreation & Culture: Up by 1.3% for the quarter  👉 Food & Non-Alcoholic Beverages: Up 0.6%  👉 Rents: Increased by 1.6% for the quarter, with a 6.7% rise annually  REIA President Leanne Pilkington highlighted these sector-specific shifts, especially noting the rental market. Even though rents are rising at a slightly slower rate than earlier this year, affordability remains a challenge. New insights from the ABS on retail trade and household spending are expected soon, providing a clearer picture of consumer behaviour as we move into next quarter’s RBA meeting.

🏡 Perth’s property market continues to soar, with median house prices on track for a 25% increase in 2024, and unit prices potentially seeing 20% growth. 📈 Driven by strong demand and limited supply, REIWA forecasts Perth’s median house price could reach $750,000 by year-end, with unit prices likely exceeding $500,000. High population growth and building constraints are keeping demand strong, as WA’s population now tops 3 million. Perth's rental market remains steady, though unit rents have risen, reflecting ongoing market dynamics. Stay tuned as we track these trends heading into 2025. 🤝 Real Estate institute of Western Australia

Selling your home over the holiday season? Here’s what you need to know! 🎄 While many think it’s best to wait until the New Year, Christmas can actually be an ideal time to list. With fewer homes on the market, you’ll face less competition—and serious buyers will still be looking. With digital tools, your property is accessible 24/7, regardless of holiday festivities. ✨ Pro Tip: Start with a trusted agent who knows the market. They’ll guide you on timing, strategy, and ensure you get the best price, whether or not the Christmas tree is up!

Congratulations to the extraordinary winners of the 2024 REISA Awards for Excellence! From innovation and resilience to leadership and community service, this year’s awardees have truly set the standard for South Australia’s real estate industry. Held at Adelaide Oval’s enchanting gala, the night was a tribute to hard work, vision, and commitment.