National unit values rise for the first time in 11 months

April 26, 2023
c

CoreLogic’s national unit index shows unit values nationally increased for the first time in 11 months, increasing 0.6% over March.

Highlights from this month’s Unit Market Update include:

  • Nationally unit values increased 0.6% over March, rising for the first time in 11 months. The subtle increase seen in Sydney unit values in February became more geographically broad-based, with six of the eight capitals recording a monthly rise in unit values.
  • Sydney recorded the strongest monthly growth in unit values across the capitals, up 1.0%, followed by a 0.4% lift in Melbourne.
  • National unit rents continue to rise at roughly twice the pace of house rents, up 1.6% and 0.8% over the month and 3.9% and 2.0%, respectively, over the first quarter.
  • The stronger rental growth seen in the medium to high-density sector has seen the gap between the median house and unit rental value narrow from $85 this time last year to $65 in March.
  • The combined capitals recorded its strongest quarterly increase in unit rents on record, rising 4.4% over Q1, equivalent to a $23 per week increase in the average rental value ($550).
  • Darwin was the only capital city to see unit rents decrease over the quarter (-0.4%).
  • The national unit vacancy rate fell to a new record low of 0.8% in March.
c2

Outlook for the unit market

The outlook for Australian unit values is starting to look more positive, with this month potentially signaling a change in the direction of values, however there are still some challenges ahead.  Arguably we are yet to see the full impact of interest rate rises, with many fixed-rate loans only now starting to expire, while three of Australia’s four major banks still expect the cash rate to rise a further 25 basis points in the coming months. Additionally, while listing levels are currently holding low, we could see listing levels rise, which would add downward pressure on values if not met with an equivalent rise in demand.

On the flip side, we could see this month’s rise in values become the start of a slow recovery phase, with inflation seemingly moving past its peak and consumer sentiment rising from near-record lows.

 

Source: corelogic.com.au

You might be also interested in

Ire3753530 Melbourne 2025 01 06 025719 9
Surprise locations where more homeowners are selling up
In 2024, more homeowners listed their properties than in the previous two years, signalling increased seller confidence despite numerous interest rate hikes. Nationally, new listings rose by 7.9% in 2024
VIEW POST
Ire5236642 Ascot Vale 2025 02 10 224229 8
Suburbs that exited the million-dollar club
Home price growth slowed over 2024 and declined over the quarter ending January as buyers had more choices and faced ongoing affordability challenges. The trend has been even more evident
VIEW POST
December 2024 House Price Report
Home prices across the combined capitals continued to climb over the final quarter of 2024, marking the eighth consecutive quarter of growth for houses and the seventh for units, with
VIEW POST
12a300fc Cbb1 1183 C044 152bf2574ba2
Victoria loses 20,000 rental properties in 18 months
Victoria shed 20,000 properties from the state’s rental stock over 18 months as higher interest rates, extra costs due to new minimum rental standards and higher taxes on property investors
VIEW POST
5c649542 Cafb 4ef0 00d5 Ea5cbfaa7a0d
Victoria’s stamp duty changes: What buyers need to know
Beginning in October, stamp duty has been significantly reduced for all off-the-plan apartments, units and townhouses in Victoria. This Victorian government initiative aims to spur development in a bid to
VIEW POST
578c6948 0f59 B3d4 8e46 Fc5725498f6a
Rents reach record high but price growth halts in most capitals
Australia’s national median rent price has crept to a new high, but an uptick in the number of available rentals has kept rents steady across much of the country. Rents
VIEW POST
F275ae36 A47d 91db 0012 9803ac9ca1a5
’Year of the first homebuyer’: 5 ways to get into the market
Easing house prices, government incentives, and a predicted interest rate cut have got experts claiming 2025 could be the year of the first homebuyer. Ray White chief economist Nerida Conisbee
VIEW POST
354021232 978827216900921 2322611816567184398 N
Neighbourhood Guide – Brunswick
Brunswick, Victoria, is a suburb that pulses with energy, creativity, and cultural diversity. Known for its eclectic blend of art, music, and cuisine, this vibrant locale has transformed into one
VIEW POST
Gettyimages 930003072
The best time of year to nab a rental according to the property data
If you’re looking for a new rental, one month of the year may give you the best chance of snagging the perfect place. Gearing up to find a new rental? You
VIEW POST
Capi 01d52420af55f78551b8f9fd0f3079c6 19e4997167d732fe8a6d0e502e93cceb
Revealed: Big bank insider predictions for 2025
Denton Pugh believes the property dream is not over for thousands of Aussies looking to get into the market. A key executive at one of Australia’s top four banks –
VIEW POST

Get your Free Property Guide.

Here goes your text ... Select any part of your text to access the formatting toolbar.

Get your free Sales Report for National unit values rise for the first time in 11 months

Get your free Sales Report for National unit values rise for the first time in 11 months

Subscribe to hear the latest

Start The Conversation Today.

Call us on:

1300 850 730

Request a Callback:

Send us a Message:

Privacy Policy

Get your Free Property Guide

Get your free Suburb Report for National unit values rise for the first time in 11 months

Get your Free PDF copy of Make Money Simple Again

Privacy Policy

Who we are

Suggested text: Our website address is: https://motionproperty.com.au.

Comments

Suggested text: When visitors leave comments on the site we collect the data shown in the comments form, and also the visitor’s IP address and browser user agent string to help spam detection.

An anonymized string created from your email address (also called a hash) may be provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is visible to the public in the context of your comment.

Media

Suggested text: If you upload images to the website, you should avoid uploading images with embedded location data (EXIF GPS) included. Visitors to the website can download and extract any location data from images on the website.

Cookies

Suggested text: If you leave a comment on our site you may opt-in to saving your name, email address and website in cookies. These are for your convenience so that you do not have to fill in your details again when you leave another comment. These cookies will last for one year.

If you visit our login page, we will set a temporary cookie to determine if your browser accepts cookies. This cookie contains no personal data and is discarded when you close your browser.

When you log in, we will also set up several cookies to save your login information and your screen display choices. Login cookies last for two days, and screen options cookies last for a year. If you select “Remember Me”, your login will persist for two weeks. If you log out of your account, the login cookies will be removed.

If you edit or publish an article, an additional cookie will be saved in your browser. This cookie includes no personal data and simply indicates the post ID of the article you just edited. It expires after 1 day.

Embedded content from other websites

Suggested text: Articles on this site may include embedded content (e.g. videos, images, articles, etc.). Embedded content from other websites behaves in the exact same way as if the visitor has visited the other website.

These websites may collect data about you, use cookies, embed additional third-party tracking, and monitor your interaction with that embedded content, including tracking your interaction with the embedded content if you have an account and are logged in to that website.

Who we share your data with

Suggested text: If you request a password reset, your IP address will be included in the reset email.

How long we retain your data

Suggested text: If you leave a comment, the comment and its metadata are retained indefinitely. This is so we can recognize and approve any follow-up comments automatically instead of holding them in a moderation queue.

For users that register on our website (if any), we also store the personal information they provide in their user profile. All users can see, edit, or delete their personal information at any time (except they cannot change their username). Website administrators can also see and edit that information.

What rights you have over your data

Suggested text: If you have an account on this site, or have left comments, you can request to receive an exported file of the personal data we hold about you, including any data you have provided to us. You can also request that we erase any personal data we hold about you. This does not include any data we are obliged to keep for administrative, legal, or security purposes.

Where your data is sent

Suggested text: Visitor comments may be checked through an automated spam detection service.