RP Data Report

Values

• Fell by -0.2% during the month of June 2011, the rate of decline is easing – after values fell by -0.5% in March, they fell by -0.4% in April, -0.3% in May and by -0.2% in June. Darwin recorded the greatest fall (-2.8%) and Hobart the greatest increase (+0.9%).
• Over the last quarter, values have fallen by -0.9% across the combined capital cities, with Melbourne the weakest performing market (-1.6%) and Canberra the best performed (+0.5%).
• On an annual basis, values are down by -2.0% with Sydney the only market in positive territory (+0.5%) and Brisbane the weakest (-6.3%).
• The Premium market has been the weakest performer with values down by -5.6% over the year, compared to the most affordable market recording value falls of -1.2% and the broad ‘middle market’ down -1.5%.

Sales Volumes

• Estimated sales volumes are estimated to be -16% below the five year average.
• · Estimated volumes in Sydney, Hobart and Canberra are at above average levels with all other capitals recording volumes below average.

Rents and yields

• Capital city unit rents have increased by 3.6% over the 12 months to June 2011, compared to average annual growth over the past five years of 7.1%.

Time on market and vendor discounting

• The average number of days on market is starting to level however, houses are taking 55 days to sell currently compared to 42 days last year and units were taking 38 days to sell last year and currently take 54 days.
• Vendors are having to discount houses by 6.0% from the initial listing price to achieve a sale currently compared to 5.9% last year and unit vendors are discounting by 6.0% also compared to 5.1% last year.

Property listings

• New and total listings have begun to ease during recent weeks from record highs.
• Whether this is the result of sales or vendors removing their properties from the market remains to be seen. The majority of listings are actually recorded outside of the capital cities.

Consumer sentiment

• Fell to its lowest level since the GFC with optimists now outnumbered by pessimists.
• Poor consumer sentiment is likely to result in ongoing low transaction volumes for properties.

Housing finance

• First home buyers remain relatively inactive.
• Investor activity has improved but remains at low levels.
• The volume of refinances for owner occupiers is up 25% over the year while non-refinances are down -4.2%.

Dwelling Approvals

• Approvals continue to fall. The decline in approvals is much more substantial for houses than it is for units.