Real Estate Institute of Australia

Over the September quarter 2024, property prices in Australia’s residential housing market saw a slight rise: ➡️ National median price: $1,050,370 (+0.2% for the quarter, +6.2% for the year). Rental market updates: ➡️ Vacancy rates ticked up slightly to 1.7%, with increases in Melbourne, Adelaide, Perth, Canberra, and Darwin. ➡️ Rates held steady in Sydney and Brisbane but decreased in Hobart. What does this mean for buyers, sellers, and renters?

Housing affordability in Australia has reached its most challenging point since REIA began tracking in 1996.  Key insights from the REIA Housing Affordability Report (HAR), September 2024: 👉 48.6% of the median family income is now needed for average loan repayments. 👉 The ACT experienced the steepest drop, with affordability falling by 1.4 percentage points. 👉 Rental affordability also worsened, requiring 24.9% of income for median rents. First-home buyers face mixed conditions: 👉 Loan commitments rose 9.4% YoY but fell 3.9% from the last quarter. 👉 Average loan size jumped to $536,561, a 6.7% increase over 12 months. “The affordability crisis continues to push the dream of home ownership further out of reach for many Australian families,” said REIA President Leanne Pilkington.

As we begin closing out 2024, we want to extend our heartfelt thanks to everyone who has been part of REIA’s incredible community. For 100 years, we’ve worked alongside Australia’s real estate professionals, supporting 46,000+ agencies, facilitating nearly $360 billion in property sales annually, and helping millions of Australians find their homes. Our journey, based in the iconic Real Estate House in Canberra, continues to drive excellence in the industry. Here’s to a century of progress, and to a bright future in 2025 as we keep building a strong, vibrant property market together!

With interest rates and inflation climbing, housing affordability in Australia is at its lowest point in nearly three decades. REIA reports that the average loan repayment now amounts to 48.6% of the median family income. What’s next for struggling homeowners?

REIA President, Leanne Pilkington, is calling for targeted solutions to address the growing housing crisis in regional Australia. With rising house prices and low rental vacancy rates, urgent action is needed to improve housing availability and affordability in these areas. Leanne stresses the need for tailored solutions, more infrastructure investment, and greater collaboration between governments and stakeholders. 🔗 Read the full media release to learn more. https://lnkd.in/gd4s26nX

As high interest rates push buyers to seek affordability, some Sydney suburbs have emerged as growth hotspots. Once under the radar, areas like Gymea, Cabramatta, and Claremont Meadows are now experiencing rapid demand as buyers chase value and community, transforming these suburbs into Sydney's most sought-after locations.

As Australia’s median house price exceeds $1 million, the affordability gap widens. In Sydney, homeowners are dedicating 58% of their income just to cover the mortgage, compared to the national average of 48%. It’s a stark reminder of the ongoing challenges in our property market.

Australia’s typical house price has officially surpassed $1 million, with a $70,000 jump over the past year, reaching a national median of $1.049 million. While Sydney remains the priciest market, cities like Brisbane, Perth, and Adelaide have seen significant price hikes, making the dream of homeownership even more challenging for many. 🏠 For those already in the market, it’s a milestone; but for potential buyers, it’s a reminder of the growing affordability gap. Industry experts emphasise the need for more housing supply to ease the pressure and make homeownership a reality for more Australians.

As of 30th September 2024, the latest rental law changes have come into effect, and it’s crucial for all property managers and landlords to be aware of the key updates that could impact your rental practices. Here are some important updates to keep in mind: 👉 Reletting Costs for Break Leases The calculation for break lease reletting costs has changed. The maximum charge is now based on the amount of lease remaining—no more charging a full week’s rent + GST. 👉 Utility Charges Must Be Passed On Within 4 Weeks Landlords are now required to pass utility bills to tenants within four weeks of receiving the bill. Ensure you're complying with this timeline to avoid any complications. 👉 Maximum Bond Limits Landlords cannot request more than four weeks’ rent for a bond. 👉 Bond Claims Require Evidence Within 14 Days If you plan to make a bond claim, you must provide evidence (receipts, quotes, or unpaid rent) within 14 days. The next round of rental reforms will take effect on 1st May 2025, so stay ahead of the game!

The combination of record migration and policy debates around negative gearing and capital gains tax is leading many property investors to rethink their position in the market. REIA President Leanne Pilkington warns that these policy discussions could accelerate the exodus of investors, reducing rental supply and worsening affordability challenges for renters and first-time buyers alike. While the value of new investor loans rose to $11.7 billion in August, Pilkington explained this reflects price growth rather than a significant influx of new investors. To restore balance, she suggests policies should focus on encouraging housing supply to make sustainable affordability achievable for everyone.