Residential real estate Values in Australia Dip to $9.2 Trillion at the End of January

Research News   •  Core Logic

Each month the CoreLogic Research team puts together a Housing Chart Pack, with all the latest stats, facts and figures on the residential property market, such as the combined value of residential real estate, sales volumes, and the trend in new listings.

Here are this month’s highlights*:

  • The combined value of residential real estate in Australia fell to $9.2 trillion at the end of January, from $9.3 trillion in the previous month.
  • Dwelling values in Australia are -7.2% over the past 12 months, marking the largest annual decline in home values since May 2019.
  • January saw national home values decline -1.0%, which is less than the -1.1% fall in December, and below the peak monthly decline (-1.6%) recorded in August.
  • The highest annual growth rate in dwelling values among the regional and capital city dwelling markets was across Regional SA, at 15.3%. The lowest change in values was across Sydney, where home values declined -13.8% in the past year.
  • Sales volumes continue to trend lower as buyer demand slows. CoreLogic estimates that in the 12 months to January, there were 500,550 sales nationally, down -19.1% compared to the previous year. While down compared to last year’s volumes, sales estimates are still 4.6% above the decade average annual sales volume.
  • At the national level, properties are taking longer to sell. In the three months to January, the median days on market was 37, up from a low of 20 days in the three months to November 2021.
  • Similarly, vendor discounting has also expanded from -2.9% in the three months to November 2021. In the three months to January 2023, the median vendor discount at the national level was -4.3%.
  • In the four weeks to 8 January 2023, the volume of new listings totalled 13,936 nationally. The new listings trend is moving through a seasonal low, and is also -22.1% lower than the previous five-year average.
  • The combined capital cities clearance rate was 61.8% for the week ending 29th of January. While this was a much stronger result than in the final weeks of 2022, the volume of auctions was still moving through a seasonal low. As volumes rise in the coming weeks, this will prove a more substantial test of the strength of the auction market.
  • Annual growth in rent values eased slightly in January to 10.1%. Annual growth in Australian rent values recently peaked over the 12 months to December, at 10.2%. The unusually high growth in annual rent growth has partially been driven by growth in unit rents across Sydney, Melbourne and Brisbane, where rents have increased around 14-16% annually.
  • Through January 2023, Australian gross rent yields rose to 3.9%, up from a recent low of 3.21% a year earlier. This is the highest rent yield since November 2019.
  • The chart of the month shows how much values would need to decline to get back to where they were at March 2020. National home values would need to decline a further 13% to reach March 2020 levels.