This article is from the Australian Property Journal archive
PROPERTY valuers expect Perth, metropolitan Brisbane and Adelaide to record the strongest apartment value growth in the country over the next 12 months.
According to CBRE’s Residential Valuer Insights Q2 2024 survey, valuers expect national apartment values to continue to climb over the next year, with 52% expecting price growth and 21% expecting growth of more than 5%.
While 70% of valuers are forecasting house value growth over the next 12 months, particularly in Perth, Adelaide and metropolitan Sydney.
The survey found recently renovated properties are the most in demand, while conditions remain more tepid for unrenovated properties and development sites.
“Recently renovated properties are well received in the market, with buyers still showing some hesitancy around construction costs and potential delays for development approvals associated with unrenovated properties and vacant land. The sentiment differs depending on location, as there is strong demand for vacant land in Perth, where overall demand in the property market is strong,” said Kat Hale, national director of residential valuations at CBRE.
“We may see an increase in market activity as we enter H2 2024 if we have more certainty around interest rates as this will give homeowners and purchasers alike more confidence in making decisions around buying and selling.”
54% reported strong to very strong purchaser demand in their local markets over the last three months, up from 49% in Q1 2024. With demand particularly strong in Perth, Adelaide, the Gold Coast and Sunshine Coast markets.
While demand was softer in Tasmania, outer metropolitan Melbourne and the ACT.
“First home buyers remained the most active buyer type in metropolitan Melbourne, Adelaide and the ACT in the last three months. Local investors surpassed upgraders to become the second most active buyer type this quarter, while developers and inter-state migrants were the least active,” said Sameer Chopra, pacific head of research at CBRE.
Chopra noted the fast and ongoing rate of growth in rents is driving the “buy now” decision, amongst both first home buyers and investors.
“Tight vacancy will also make a lot of re-location and interstate migration more challenging,” added Chopra.
“Interstate investors were still most active in Perth and outer Brisbane this quarter while local investors were most active in metropolitan Brisbane and Perth, upgraders were most active in metropolitan and outer metropolitan Sydney and Tasmania.”
