As we step into the promising expanse of 2024, we extend our warmest greetings to you. We hope this new year finds you in good health and that you enjoyed a delightful festive break.
As we embark on another year of collaboration and partnership, we are excited about the possibilities that lie ahead. Thank you for being an integral part of our journey.
ARE RENTS SET TO RISE IN 2024?
Over the past 12 months, rents rose four times the pre-COVID-19 average. Is this trend forecast to continue this year?
Across Australia, rents went up 8.3 per cent in 2023, according to new data from CoreLogic. While this is a whisker below the 9.5 per cent and 9.6 per cent rises recorded in the previous two years, the 2023 result is still “more than four times the pre-COVID decade average of 2 per cent per annum,” the thinktank reported.
Translated into dollar terms, Australians are now paying an average of $46 more on weekly rent than they were at the end of 2022.
According to CoreLogic, however, “the headline numbers mark the diversity that has emerged across rental markets through 2023”.
Unit growth has experienced a mark slowdown compared to previous years, though it continues to outstrip house rental growth.
Tim Lawless, research director at CoreLogic, stated: “The more pronounced slowdown in unit rental growth could reflect slower net overseas migration through the second half of the year, especially student arrivals which are highly seasonal.”
“It could also be a possible sign that more unit renters are reaching their affordability ceiling as rents exceed how much they are willing or able to pay,” Mr Lawless said.
Different areas of Australia saw substantial differences in rental growth over 2023. In Perth, rental growth led the nation and it continues to show no signs of slowing.
Units in Perth rose by 16.5 per cent over 2023, equal to $80 extra in weekly rent. House rents also rose by an impressive 12.9 per cent, or approximately $73 per week.
Other areas struggled much more, with Canberra and Hobart both seeing declines in rent over the last year. In regional Australia, normalisation of regional migration trends saw average rental growth slow to just 4.3 per cent, the smallest calendar year rise since before the pandemic.
Looking forward into 2024, Mr Lawless predicted that rents will continue to rise, albeit more gradually.
“Considering we are yet to see any material response in rental supply, growth in rents is likely to remain above average in 2024,” Mr Lawless said.
“However, we could well see a further slowdown in rental growth as affordability pressures drive structural changes in rental demand,” he said.
“This could include a lift in average household size, as group households re-form and multigenerational households become more common.”
Are rents set to rise in 2024? – Real Estate Business
WHERE ADELAIDE WILL BE REZONED TO BUILD 1,000 NEW HOMES
The state government approved code amendments for developments at West Lakes, Hillier Park and O’Sullivan Beach, in order to bring more buildable land to the market.
The changes will unlock 489 allotments at West Lakes, 400 at Hillier Park and 114 at O’Sullivan Beach. Some of these are expected to host medium-density building, meaning that even more dwellings could result from this adjustment.
In announcing the rezonings, the government promised that all levels of the market would be set to benefit, from affordable housing to high-end, with options for everyone from first home buyers to retirees.
The West Lakes rezoning in particular will pave the way for a significant infill site in the western suburbs, on land that has been unused since the SA Water Wastewater Treatment Plant was decommissioned in 2004. The development will provide close to 500 medium-density houses, with buildings capped at a maximum height of four storeys. It’s expected to be a popular site for buyers with proximity to the lake and nearby transit options.
The Hillier Park rezoning will sit adjacent to the Hillier Residential Park, an over-50s residential living community that is almost at capacity and has recently received a surge of interest. New homes in this area are expected to provide affordable options that are needed on the edge of Gawler township.
And the O’Sullivan Beach rezoning, albeit the smallest of the three, is slated to bring some much-needed supply to Adelaide’s southern suburbs. The code amendment will enable vacant land here to be developed into low- to medium-density housing, and also provides for a noise barrier to reduce the impact to the area from nearby industry.
Civil works on all three sites are expected to commence this year.
SA Premier Peter Malinauskas commented that the rezonings showed how seriously his government was taking the need for housing, with this latest announcement contributing to South Australia’s Better Housing Future and its commitment to deliver the largest land release in the state’s history.
“We’ve made it clear that investing in health and housing are priorities for this government,” Mr Malinauskas said.
Nick Champion, South Australia’s Minister for Housing and Urban Development and Minister for Planning, said the rezonings were an example of the government “pulling every lever at its disposal to tackle the housing crisis head on”, and added that it had worked in consultation with the surrounding communities to tailor each plan.
“When assessing the code amendments, we have listened to the feedback from the community and believe the new zoning will strike a balance between the public’s expectations and the need for development,” Mr Champion said.
Moreover, Richard Dwyer, vice president of the Urban Institute of Australia’s SA branch, commented that the rezoning had rightly targeted the need to bring a broad array of options to home buyers in the state.
“This announcement provides a range of opportunities in terms of both location and the type of development and this provides all important choice to home buyers.
“Whether it is medium-density infill, affordable housing for seniors or lower density development, we know there is tremendous demand in Greater Adelaide and we need all of it,” Mr Dwyer said.
Where Adelaide will be rezoned to build 1k new homes – Smart Property Investment
Thank you for your ongoing support!
Regards David, Benjamin & the Team at DB Philpott Real Estate