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Highlights
- Data by the Australian Bureau of Statistics shows that seasonally adjusted total dwellings inched higher during November.
- Many buyers are likely to find themselves in a situation where their perceived valuation of the market is lower than the actual levels.
- Affordability continues to remain a pressing issue in central areas, but the same is not true for regional areas where many have been migrating steadily.
The property market has had a phenomenal ride throughout 2021, with a slight slowdown in prices being observed as the year ended. Despite prices inching up higher, though at a lower rate than before, Australians have been flocking the markets in search of suitable property. In November, dwelling approvals in the country inched further higher as the Delta variant induced restrictions took a backseat.
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Data from the Australian Bureau of Statistics (ABS) suggests that seasonally adjusted total dwellings rose by 3.6% in November. Among this rise, private sector dwellings except houses rose by a higher percentage of 9.7% than private sector housing, which rose at 1.4%. Additionally, the value of non-residential buildings approved saw an uptick of 28.3%. Tasmania recorded the highest monthly jump in dwellings of 40.8%, followed by Queensland at 20%.
DO NOT MISS: How did Australia’s regional property market fare during the COVID-19 pandemic?
Auctioning going strong
Auctioning has become hombuyers’ go-to venue in search of their dream home. Auctions present an ideal set up for buyers to examine what is being sold to them. Additionally, the bidding allows them to quote a price which they think is right for the property being auctioned.
With rising valuation and dwellings in the backdrop, many buyers are likely to find themselves in a situation where their perceived valuation of the market is lower than the actual levels. The property market in Australia has developed a highly aggressive environment, with cutthroat competition for properties. Consequently, first-time auctioneers are likely to be overwhelmed with the experience.
As property prices have only risen in Australia, a key idea is to be fully prepared for expectations to be overshot in these auctions. A handy tip for buyers is to have the funds already sourced before going for an auction. Additionally, performing due diligence about the property is also a great way to ensure no risks are undertaken once the property is bought.
Shift towards regional areas
The figures by ABS present a key observation that dwelling approval rate is higher in regional areas as compared to the main cities. New South Wales recorded a drop of 18.4% in dwelling approvals during November, while Victoria recorded a growth of only 8.9%.
Meanwhile Queensland has seen a massive uptick in dwellings approved of 20%, which highlights its lower affordability concerns as compared to other states. Particularly within regional Queensland, the affordability concerns are less challenging as supply has also been growing at a fast pace in the state. However, in the cities of Melbourne and Sydney, affordability continues to remain a pressing issue and has severely affected buyers. Thus, a move to regional areas could become a recurring trend as work from home culture continues in the wake of the Omicron variant spread.
ALSO READ: How is Omicron likely to impact Australian property prices?
