The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
3
print
Print
ResidentialAna NarvaezThu 25 Jul 19

Housing Returns, Demand for Land at Historic Lows

955c8b3a-1a5a-4ae8-9349-ceaf98153086

The property market downturn has driven housing returns into the red, with the total returns for residential property slumping 3.3 per cent over the last year.

The combination of falling value growth and low rental yields has pushed total returns into negative territory for the first time since the global financial crisis.

The analysis, from Corelogic’s Cameron Kusher, looks at the total investment return trends across Australia’s capital cities and regional markets over the 2018-19 financial year.

The data showed diversity across markets, with housing returns remaining positive in Brisbane, Canberra Hobart, while returns remained “mildly positive” across regional markets at 1.6 per cent.

“To put it in context, housing returns last year were worse than those recorded during the financial crisis and during the 2010-12 downturn,” Kusher said.

Total returns over the fiscal year were lower in both Sydney and Melbourne, which recorded declines of -6.7 per cent and -6.0 per cent respectively.

“For Melbourne it was the first financial year in which returns were negative since 2011-12 and it was the largest fall in total returns on record,” Kusher said.

Total returns in Brisbane, while positive, were the lowest they have been since 2011-12 at 1.7 per cent.

The analysis comes as residential lot sales declined to record lows over the March quarter, as demand for new homes slumped off the back of the downturn.

The latest HIA-Corelogic Residential Land Report, which covers 47 markets across the country, showed a reduction in settled land sales, with just 7,236 lots sold over the quarter.

While house lot sales were almost 50 per cent lower than the 10-year average of 13,682, land prices remained largely intact.

“While the volume of sales decreased considerably, this was not reflected in the change in the median price of land,” HIA chief economist Tim Reardon said.

The national weighted median land price increased 0.9 per cent in the March quarter compared to the December quarter.

Related: House Price Declines ‘Credit Negative’ for States


Green shoots as declines slow

More recently, there’s been signs of buyers returning to the market as the slowing rate of declines, strong auction results and a boost in sentiment validates forecasts of a recovery from next year.

Domain’s latest House Price Report showed house price declines in Sydney slowing to 0.4 per cent in the June quarter — the smallest decline since 2017. House prices rose by 0.3 per cent in Melbourne for the first time since the downturn began.

Brisbane’s media house price dropped by 1.3 per cent in the June quarter, while its unit prices are now back to where they were in 2013.

Meanwhile, the latest sentiment survey, from ME Bank, showed improving confidence in the property market — with 38 per cent of those surveyed expecting house prices to rise over the next 12 months.

The survey results recorded an uptick from the March quarter, which was conducted prior to the federal election.

ResidentialAustraliaFinanceReal EstatePlanningPlanningSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
View All >
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
Industrial

Cadence Nabs Logistics Portfolio for $170.5m

Taryn Paris
Sponsored

Rare Coastal Development Opportunity in Heart of Mooloolaba

Partner Content
An exceptional opportunity has arisen to acquire one of Mooloolaba’s most premium development landholdings...
LATEST
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
2 Min
Industrial

Cadence Nabs Logistics Portfolio for $170.5m

Taryn Paris
3 Min
Development

Rare Coastal Development Opportunity in Heart of Mooloolaba

Partner Content
2 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/housing-returns-at-historic-lows