November Property Update with Cameron Porter.
Watch the November 2024 Property update with Cameron Porter from Porters House Buyers Agency.
In the update, Cameron discusses the following topics;
International stock market response to the US Election.
Australian Property Market overview, and key movements in the capital cities.
Is the market becoming a buyer’s market?
Rental Growth Slowing
Potential Capital Gains Tax (CGT) and Negative Gearing Changes.
Government progress regarding to the five-year plan to build 1.2 million homes
Recent Reserve Bank of Australia’s (RBA) decision.
Here is the transcript below.
Off the back of the US election result, we have seen the share market rise over the past week.
On the other hand, the Australian property market growth softened in October, rising only 0.3%, which was the 21st consecutive month of growth since the cycle commenced in February last year.
Sydney fell by 0.1%, the first monthly decline since January 2023. This decline was led by a 0.6% fall in upper-quartile house values, while Sydney’s lower-quartile house and unit values both recorded a half-percent rise in values in October.
Brisbane grew by 0.7%, Adelaide increased 1.1%, and Perth grew a further 1.4%.
Melbourne, on the other hand, fell a further 0.2%. Properties are taking longer to sell, with the national median time on the market coming in at 33 days, up from 27 days this time last year.
As a result, vendors are now offering slight discounts on their properties, and more properties are for sale, up 1.3% from the same time last year.
Rental growth continued to slow nationally, with rents up 5.8% over the 12 months to October, however vacancy rates are still tight, with the national vacancy rate at 1.8%, -1.5 percentage points below the pre-covid five-year average.
There has been much discussion recently about winding back negative gearing and Capital Gains Tax (CGT) concessions for property investors. The Treasurer, Jim Chalmers, has given a strong indication that negative gearing and CGT changes are off the table for now, as their modelling says they will not increase supply.
Almost one year into the government's planned 1.2 million new homes in five years, the government is falling very short of its target.
The Reserve Bank of Australia (RBA) has left interest rates on hold. While it is unlikely that rates will fall at the December RBA meeting, economists agree that they will fall in 2025 if inflation can get back into the RBA’s target range.
We are seeing some good buying opportunities in the market, so if you are considering investing in property, please get in touch.
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