New-look FHBA Property Market Update: March 2018

Welcome to our new monthly ‘FHBA Property Market Update’, designed to keep first home buyers right across Australia informed with what is going on in the property market (including matters that could impact your deposit saving, property planning and purchasing related decisions).

Each month’s FHBA Property Market Update will include:

  • CoreLogic Market Reports – CoreLogic is Australia’s number 1 property data ‘research house’. Each month we will showcase their leading analysis to help you be informed, including videos, graphs and observations on the market.
  • CoreLogic Property Values – A look at the latest property values around the country.
  • Interest Rate Insights – A look at the latest Reserve Bank rate decisions, what could be around the corner and what the banks are offering home loan applicants.
  • Listings Insights – A look at property listings and sales trends.
  • Grants & Benefits Watch – If there are announced changes to any government benefits for first home buyers, such as the First Home Owners Grant, stamp duty concessions, shared equity programs, the First Home Super Saver Scheme and more, then we will post these changes here!
  • New Homes of the Month – Australia is a big market, but our top 3 first buyer properties of the month will show you where some of the best opportunities are (especially if you are looking to maximise your benefit entitlements!)
  • Location Location Location! – A look at what locations are hot right now.
  • Hot first home buyer tips – The property market is not something that is typically referred to as being ‘fair’, so you need to be up to date with the latest tips and strategies to give yourself advantages over others competing in the market.

Disclaimer: The FHBA Property Market Update is general in nature and should not be considered as advice to act on. It includes a mix of internal and external information. You should seek professional advice before making any financial or property related decisions. To speak to an FHBA Coach please click here.  

CoreLogic Market Reports

The following videos discuss property market conditions across Australia’s capital cities. The video reports consider a range of factors (including those that you don’t typically read in Domain or online reports). They are presented by the Head of Research at CoreLogic Australia, Tim Lawless.

CoreLogic National Housing Market Update: March 2018

CoreLogic Melbourne Housing Market Update: March 2018

CoreLogic Sydney Housing Market Update: March 2018

View the videos reports for Australia’s other large capital cities:

CoreLogic Property Values

The following table shows how dwelling values have changed over the quarter and year to the 28th of February 2018:

City Qtr Change Yr Change Median Value
Adelaide + 0.1% + 2.2% $433,354
Brisbane – 0.1% + 1.8% $491.850
Canberra – 0.2% + 3.2% $588,616
Darwin – 2.0% – 7.4% $426,421
Hobart + 3.2% + 13.1% $416,840
Melbourne – 0.4% + 6.9% $723,334
Perth – 0.7% – 2.7% $464,474
Sydney – 2.4% – 0.5% $880,743

Source: CoreLogic Hedonic Home Value Index

  • Strongest performing city – Hobart
  • Weakest performing city – Sydney
  • Highest rental yield – Darwin [5.9%]
  • Lowest rental yield – Melbourne [2.9%]
  • Rents have been rising in all capital cities except Darwin and Perth
  • Despite continuing headlines of oversupply, apartment price movements in Melbourne and Sydney have been stronger than house price movements
  • For deeper analysis you can download the CoreLogic March Press Release here.

Interest Rate Insights

At the March Reserve Bank of Australia (RBA) board meeting, the RBA board opted to leave the official cash rate on hold, at a record low of 1.50%. The Australian Stock Exchange (ASX) RBA Rate Indicator, as at the 28th of March 2018, indicates a 0% chance of a rate change at the next RBA board meeting in April.

Learn more about the RBA’s March rate decision in FHBA News

Last month ANZ and NAB revised their 2018 interest rate forecasts. Both had previously expected two rate increases in 2018. They now anticipate the RBA to raise rates just once – at an amount of 0.25%.

See current home loan specials for first home buyers in FHBA News!

Listings Insights

According to data, the quantity of properties currently listed for sale is on the rise. This is largely due to a number of properties (around 40% on a national level) being passed in at auction in 2018 and some property listings changing from an auction selling method to a private treaty (‘for sale’) selling method, mid campaign, as some of the biggest property markets cool. The average day a property is on the market is currently rising as well. Various industry experts have suggested that these factors are all signs that vendors in some areas have not yet accepted that the property market has cooled a little bit from 2017 highs.

Of course we should remind you that each market is different. For example, Perth is different to Sydney. And even within capital city markets, there are sub regions that can vary greatly.

Some promising signs is that the level of first home buyer activity has been continuing to rise according to the Australian Bureau of Statistics (ABS) housing finance data. This has been for all of Australia, although the biggest increases have been in markets where government first home buyer benefits have increased in 2017, such as NSW where greater stamp duty concessions for first home buyers were introduced. These factors have contributed to the overall demand for properties in the lower end of the market remaining strong and, in some areas, even increasing.

We will continue to monitor listing levels, transaction levels, property prices and the level of first home buyer participation in future Property Market Updates to help keep you informed.

Grants & Benefits Watch

The FHBA Grants & Benefits Watch section is where we will report any changes to government benefits for first home buyers, such as the First Home Owners Grant (FHOG), stamp duty concessions, shared home equity programs, the First Home Super Saver (FHSS) scheme and more. If there are any significant proposals to alter first home buyer benefits, we will also report about these proposals to keep you informed.

In the month of March there were no official changes to report of. However, of interest to Tasmanian first home buyers, the Liberal Government returned to power at the State Election on the 3rd of March. They have promised a range of measures to assist first home buyers including a new stamp duty concession. If this is made law the effective start date will be the date the Liberal Party announced the policy – the 7th of February 2018. To see the promises the Liberal party made on housing affordability please click here.

We should also mention that after launching in February, the Victorian Government’s pilot shared ownership program – HomesVic – is now underway. For further information on this Government program please click here to view our article covering the HomesVic launch in FHBA News.

To view the current government benefits available in your state please visit our Grants Info Hub

New Homes of the Month

Many first home buyers choose to buy or build a brand new property for their first home because of the government benefits available, as well as because it is also an opportunity to own something that has that ‘new’ feel, in an area that is changing and a property that should have lower maintenance requirements in comparison to most established properties.

To help those who are looking for a brand new property for their first home we offer first home buyers a leading service called FHBA New Homes. This service helps first home buyers compare, find and secure a brand-new property for their first home. This is a complimentary service for FHBA clients.

As a first home buyer, a major benefit of taking advantage of this service to find and secure your first home is that in addition to government incentives such as the FHOG, you may also be eligible for the FHBA 50 Rebate (a first home buyer cash rebate available exclusively to FHBA clients) in addition to the government incentives. For more on the FHBA 50 Rebate please click here.

Every FHBA Property Market Update our team will select 3 awesome properties (a house, townhouse and apartment) suitable for first home buyers to be our new homes of the month. Here are this month’s winners!

  • House of the month – A smart designed a house & land package in Sydney’s Southwest. Total first home benefits $41,000*. Priced from $659,900.
  • Townhouse of the month – Stylish, contemporary and very ‘Melbournian’. 6 to choose from. Total first home buyer benefits $41,250*. Priced from $642,500.
  • Apartment of the month – Location, location, location and construction already underway. 6 to choose from. Total first home buyer benefits $27,500*. 2-bedroom apartments from $349,000.

*Total first home buyer benefits are an estimate only. They are based on a client being eligible for their states FHOG, stamp duty concession and the FHBA 50 Rebate. Talk to a New Homes expert to find out more

Currently under construction – an artists impression of these awesome 2 bedroom apartments in Brisbane (with change from $350,000!)

Location Location Location

In March, our location hotspots in focus have included Craigieburn in Victoria and Semaphore in South Australia. What is so special about these hotspots for first home buyers? Check out hotspot in focus articles below:

Semaphore, in Port Adelaide, is a great area for first timers

Hot first home buyer tips

Have you ever wondered how much you can borrow (to buy a property)? This is a common question people ponder as they work on saving up their deposit. “I know I’m not there yet, but I wonder if I was to try today how much I would get?” and “I wonder if I have enough now” are examples of common questions aspiring first home buyers think about.

And where do we typically go to first when we have questions? The internet (specifically google, or sometimes we may go to a website directly such as our banks website if it is finance related). Other than various banks and mortgage brokers saying things like “talk to us and we will give you an assessment, the other common option people use are online ‘borrowing power’ or online ‘borrowing capacity’ calculators. These calculators typically ask for you to input a few details and in return, they spit out an estimate of how much you can borrow.

But how good are these calculators? Do they really answer the info people want to know? Can users trust the results that are given?

Find out now in our tip of the month article!

Have you ever wondered how much a bank would lend to you?

To see hotter first home buyer tips please visit the FHBA blog.

We hope you enjoyed our new FHBA Property Market Update. Our next edition will be in April.

Written By,

First Home Buyers Australia

First Home Buyers Australia
First Home Buyers Australia

Australia’s leading organisation specialising in assisting first home buyers achieve the great Australian dream of property ownership.