CBRE has just released the results of its latest survey of residential valuers, revealing exciting trends in the market:
Demand Overview:
- Strong Demand: Six times more valuers report “strong to very strong” demand compared to “soft or limited.” High demand is seen in Perth, Adelaide, and Brisbane metro, while ACT and Melbourne show softer demand.
- Property Type Demand: Houses and renovated properties are in high demand, while unrenovated properties and vacant land are seeing softer demand.
Buyer Activity:
- First Home Buyers & Upgraders: 66% of valuers note strong demand from first home buyers and upgraders. Local and interstate investors, as well as downsizers, are also active.
Future Market Outlook:
- Future Demand: 57% of valuers expect demand to increase over the next 12 months, with only 5% predicting a decrease.
- Home Values: 78% anticipate home values to rise in the next year, especially in Perth, Sydney, and Adelaide.
- Apartment Values: 44% expect apartment prices to grow, particularly in Brisbane, Gold Coast/Sunshine Coast, and Sydney.
- Vacant Land: 51% foresee rising values, with the strongest growth likely in Adelaide, Sydney, and Perth.
Supply Outlook:
- 58% expect more listings in the next 12 months, while only 6% predict a decrease.
Market Highlights:
Perth
- Leading the nation with 20.58% annual price growth, driven by tight supply, high demand, and relative affordability.
Brisbane
- Now the second-most expensive capital, with 13.69% growth over the past year. Growth has slowed slightly, but the market remains strong.
Adelaide
- Home prices have climbed 14.49% in the last 12 months. Low stock levels and affordability are key drivers.
Key Takeaway
Australia has seen 17 consecutive months of home price growth, setting a new record in May 2024. Despite rising listings, population growth and tight rental markets continue to support strong demand and price growth.