Herron Todd White (HTW) has issued their ‘half time score’ for the property market in 2021, with their June Month in Review highlighting ‘mostly robust property markets across the nation’.
“A sense of confidence flowed through many centres fuelled by low interest rates, bullish returns to economic form and substantial government assistance,” the report reflected.
“Buyers who’d been keeping their powder dry were suddenly given a hurry up, as activity and price growth gained momentum.
“In addition, reduced discretionary spending saw many of us with a few extra dollars in the savings account waiting to be utilised for a deposit or renovation.”
But, as HTW explains the Australian property market is driven by varying factors in different locations, with some areas of the residential market performing better than others
And that was reflected in this month’s property clock…
Tick tock on the residential property clock
This month’s property clock paints a fascinating picture with all regions in positive territory when it comes to housing.
The somewhat lopsided clock shows a couple of markets are entering recovery, most are enjoying a rising market, a few regional areas are nearing the peak, and some are now at the top of the market.
The residential unit market looks remarkably similar except for one capital that’s in decline and one major regional area which is approaching the bottom of the market.
And the reality is there’s been little movement compared to last month’s report, so let’s dive a little deeper…
Top of the clock
Houses – Albury is the only new addition to the peak of the market position, while Bathurst, Burnie/Davenport, Canberra, Dubbo, Launceston, and Tamworth remain at the top of the clock.
Units – When it comes to units, Bathurst, Burnie/Davenport, Launceston, and Tamworth remain at the peak of the market.
Starting to decline
No regions are starting to decline in terms of houses or units
Houses – No regions are in decline
Units – Canberra retains its position as a declining market when it comes to units.
Approaching bottom of the market
Houses – No regions are approaching the bottom of the market
Units – The Central Coast is a new addition to the approaching the bottom of the market category when it comes to units
Bottom of the market
No regions are at the bottom of the market in terms of houses or units
Start of recovery
Houses – Broome in WA is now officially enjoying the start of recovery, while Alice Springs and Bundaberg remain in this position.
Units – Bundaberg and Toowoomba are new entrants to this category for units while Albany, Alice Springs, Brisbane, Cairns, Darwin, Emerald, Geraldton, Ipswich, Kalgoorlie, Melbourne, Perth, South West WA, Sydney, Townsville, and Whitsunday continue to be positioned here.
Houses – The list of regions in a rising market is lengthy, but notably Darwin has now entered this category.
Meanwhile, regions remaining here are: Adelaide, Adelaide Hills, Albany, Ballina/Byron Bay, Barossa Valley, Brisbane, Cairns, Central Coast, Coffs Harbour, Darwin, Emerald, Geraldton, Gladstone, Gold Coast, Hervey Bay, Hobart, Illawarra, Ipswich, Kalgoorlie, Karratha, Lismore, Mackay, Melbourne, Mildura, Mount Gambier, Newcastle, Perth, Port Hedland, Rockhampton, Shepparton, South West WA, Southern Highlands, Sunshine Coast, Sydney, Toowoomba, Townsville, and Whitsunday.
Units – Like houses, the list of areas where unit values are rising is lengthy and all regions have appeared in this section prreviously.
They are: Adelaide, Adelaide Hills, Albury, Ballina/Byron Bay, Barossa Valley, Broome, Coffs Harbour, Dubbo, Gladstone, Gold Coast, Hervey Bay, Hobart, Illawarra, Karratha, Lismore, Mackay, Mildura, Mt Gambier, Newcastle, Port Hedland, Rockhampton, Shepparton, Southern Highlands, and Sunshine Coast.
Approaching peak of the market
Houses – Geelong and Wodonga continue to be approaching peak of the market.
Units – Geelong and Wodonga also remain in this position when it comes to units.
The industrial property clock
HTW notes the industrial property market has been generally resilient in the past 18 months, and only a few select areas are currently in negative territory. All regions also remain in the same position as they were a month ago.
Notably, the Gold Coast is at the peak of the property market, the Central Coast is considered to be in decline, Orange and Toowoomba are officially in a declining market, and Alice Springs, Darwin, and South West WA are approaching the bottom of the market.
All other regions are at the start of recovery, enjoying a rising market or approaching market peak.