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Australian Property Podcast

May 2, 2022

So in today's episode I want to talk about the rp data monthly figures for april 2022. the media have had a circus with this one but i feel their articles have given the wrong impression so i wanted to do an episode on it today if you'd like to get in touch i'd love to hear from you please send me an email at jp or give me a call on oh four two three four seven five double three six and please note everything discussed here is done so for entertainment purposes only i've not taken into account your personal circumstances nor your risk profile so you should seek professional advice before making any investment decisions so today we're going to talk about the rp data april monthly figures so if you were to believe the newspapers you would believe that the market is in a full scale freefall but in my opinion the numbers were actually surprisingly strong um so the big news was sydney which was down 0.2 in total and that's based on a fall of zero point one percent for houses and zero point four percent for units um so as you can see it wasn't even a one percent fall and i mean point zero point one for houses is um uh not much of a collapse um and interestingly what i've noticed at least looking at the market and from what i see in my day-to-day is that some of the more expensive areas are in a little bit less demand than they were and then some of the more affordable regions um do tend to be doing a lot better recently than they were comparatively to other markets over the last couple of years so that is one observation i have to go through a couple of the other markets here so in melbourne houses were down 0.2 percent units actually increased to 0.4 uh brisbane including the gold coast is still very strong uh prices were up 1.7 for houses and one and a half percent for units um adelaide has been talked about increasingly lately um i think it's the lower price point uh houses grew 1.9 percent and units 1.6 percent from the month so very strong month over in adelaide uh in perth it was actually up one point two percent for houses and zero point three percent per units canberra had growth of one point three percent for houses one point three four units um hobart actually dropped 0.4 percent for houses but grew 0.6 for units and then in darwin houses increased by 1.3 and units by 0.3 percent so what we can basically see here is that aside from a small dip in sydney and melbourne the numbers are actually holding up quite strongly so far at least all things considered um personally i actually expected the numbers to come in worse than this um and if you look at these figures i mean something like a 0.1 percent uh that's sort of like uh you know statistically not much of a an important figure and so we'll see what further data looks like but my expectation was that it was actually kind of coming worse uh but i think the media has really pounced on it because you know i guess sydney's been so strong for the last couple of years and any sort of sniff that things could potentially go backward um you know they're going to make a story about that so as you can see you know the down moves aren't too savage so far uh even though the media would have you believe otherwise um in terms of some other stuff that i am seeing in my day-to-day so i caught up with my uh my folks the other day who are based in the southern highlands these days um and they noted to me that because they're quite uh interested in property as well that transactions have slowed dramatically in the area down there as well and they've actually been receiving calls from real estate agents asking if they're still interested in the properties they were looking at a couple of months ago um so uh you know that really is quite an interesting um change of dynamic because you know the southern highlands region was one of the real standout performers during covert um you know we saw a lot of the boomers you know take their sort of sydney money and move down there and um and to see that things are slowing there you know maybe a bit of an indication as to sort of a sort of change in trend if you will of the trend that we have seen over the last couple of years or at least a slow down in the trend um and then by contrast um interestingly i received a call within the last two weeks from an agent asking if i'd sell my property in queensland so um you know up there they're struggling for supply looking for properties to sell and they were trying to talk me into selling so um you know we've got a bit of a you know two-speed market here where you know the agents are calling up buyers in sydney or at least southern highlands and you know we're um we've got real estate agents calling sellers or vendors rather uh in brisbane so um you can see i guess that's a good indication of what's happening in the market um and so the other guess i guess the other bit i want to sort of mention here is that you know based on what i'm hearing in the southern highlands it doesn't sound like high-end regional is going to be really insulated um i thought that area was going to be perhaps more resilient being one of the strongest growing areas and you know with the dynamic of the aging population and everything like that but perhaps you know financial gravity maybe had to step in at some point and perhaps that's why uh we are seeing maybe a little bit of a slowdown um you know even in those kind of areas that were really popular you know with the um baby boomer generation you know moving out to the regional areas and you know downsizing from the big um sydney and melbourne family homes so um you know definitely some interesting dynamics at play here um wanted to quickly discuss this today because i don't think that the data looks very bad as yet it looks like we've got an rba move that's imminent if not a couple of moves so there's going to be some potential action on that front and i do intend to do some further videos over the coming days uh potentially around some strategies around increasing capacity borrowing power wise as well so i really appreciate you tuning in as always please note as always everything discussed here is done so for entertainment purposes only i've not taken into account your personal circumstances nor your risk profile so you should seek professional advice before making any investment decisions really appreciate you tuning in as always thank you