Housing Trends - Data that helps us decide what and where to invest

Core Logic’s Regional Market Update shows that once again, Regional Australia’s dwelling values are on the rise, outpacing capital city values over the three months to April. Regional areas saw a growth of 2.1%, compared to just 1.7% in the cities. Western Australia and Queensland are leading the charge with impressive growth in both dwelling and rental values.

Unsurprisingly, property values and rents vary across different regions, with some seeing positive growth and others experiencing declines. Core Logic’s report shows that Queensland’s Sunshine Coast boasts the highest median property value of all the regions measured at $1,019,013.

If you’ve been following us for a while now, you’d know how we feel about using medians to inform our decisions as it is rarely an accurate comparison metric. That said, in this instance, it can be helpful to reflect the growth we’ve been predicting and experiencing across the region … when supported by other data.

Adding another layer of analysis to the changes in the property space are new insights from the ABS Labour Force survey quarterly data which was reported on by The Australian that discussed factors like wages and economic stability influencing housing, commercial real estate, urban development, and property values.

The ABS Labour Force survey for the February quarter shows shifts in workforce occupations, industries, locations, and household setups, impacting economic growth, productivity, and housing demand, with the property industry struggling to keep up.

Tech job hubs are seeing higher demand for luxury housing, while industrial job areas need more affordable housing. Commercial real estate demand is also shaped by local job trends.

Job numbers grew from 13.9 million to 14.3 million in the year to February, with 49% of occupations increasing. Notable growth was seen in logistics clerks, health and care jobs, and social assistance roles, driven by online shopping, an aging population, and government policies. On the flip side, fast food, financial brokerage, and HR jobs declined due to automation and tech advances.

Lower-skilled roles saw the biggest increase, reflecting the service sector’s growth and demographic shifts and the need for affordable housing solutions.

Again, good data, but still doesn’t paint the picture you need to make informed decisions to invest. Current trends in prices and rents are irrelevant if those trends will change in the future. Labour data is also a current view in time. Yet many investors and (mostly so-called) advisors speak to the current like it has the answers you need – because they don’t know how to get the actual information you need, or even know what that is.

When investing it’s important to understand where a market is, but only as the starting point for understanding the complex mix of demand, supply, economy and buyer perception.

What does this mean for you?

Making smart property investment decisions requires a keen understanding of the region’s demographics, job market, and economic conditions. Investors need to consider the specific demands of the local population, including the types of jobs prevalent in the area, as these directly influence housing needs and commercial real estate opportunities. Additionally, broader economic trends, such as wage growth and macroeconomic stability, play a crucial role in shaping property values and rental yields. By aligning investment strategies with the unique characteristics and needs of the local economy and workforce, investors can better position themselves for sustainable growth and profitability.

If that all seems like far too much work and a mind-boggle, that’s ok. This is what our team does on a daily basis to understand the true demand in regions where the opportunity is the greatest for investor returns and community needs. This is particularly evident when we dive really deep into the data to prepare our annual Property Market Update on the top-performing region in the Country – The Sunshine Coast.

If you’re ready to make your next investment move and want the confidence of data-backed strategies then talk to our team today.