Australia’s property market is now rising in every location, according to one of the biggest names in real estate valuation.
The monthly Herron Todd White (HTW) property report considers all areas of Australia across houses, units and retail locations, and has found that every part of the residential market is now in a growth spurt.
“The main takeaway would be the geographic extent of some pretty strong market conditions,” said Kevin Brogan, Director of Group Risk & Compliance at Heron Todd White.
“We’ve seen strong markets in the past, and historically, they’ve been centred around capital cities and metropolitan areas, and if it was in the regions it was around a specific industry. During the mining boom, there would have been some really strong areas of growth.”
“What we’re seeing at the moment is that the sheer strength of the market growth is its most remarkable feature. That’s largely fuelled by the current cost of capital and the very low cash rate.”
HTW operates a property clock system (below) that shows that every area of Australia is currently rising or at a peak, with no area declining.
“It’s the fact that there is such a breadth,” said Brogan. “People are now less constrained with where they are looking for property and investment opportunities.”
“I’ve come into the office today but it’s the first time this week and will probably be the last time this week, and I’m quite happy working from home, so it doesn’t matter about the travel time.”
“It’s really freed up people’s thinking when they’re looking at properties. It’s the fact that more people are looking to purchase because we’re seeing market conditions that are increasing everywhere and that means there are areas where you can get in at a reasonable entry point.”
“The fact is that some markets are increasing quite rapidly, and people are widening the net of where they might look to in order to get in at an affordable price point. That’s bringing into play a lot more markets.”
Read more: How could Australia’s property market deflate? One expert explains how the bubble could burst.