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Printed: 21 June 2024 11:50 AM


4 Jun 2024 - Australian Secure Capital Fund - Market Update

By: Australian Secure Capital Fund

Australian Secure Capital Fund - Market Update

Australian Secure Capital Fund

May 2024

National property values continue to perform strongly, with CoreLogic's National Home Value Index recording another 0.6% increase in April, the same which was achieved in February and March, resulting in 15 months of continuous monthly growth. Yet again, Perth performed the strongest, increasing by a whopping 2.0% for the month, with Adelaide and Brisbane again achieving the second and third largest growth with 1.3% and 0.9% respectively. Darwin, Sydney, Hobart and Canberra also experienced growth with 0.6%, 0.4%, 0.3% and 0.2% respectively, whilst Melbourne recorded a slight reduction of 0.1%. This raised the quarterly national growth rate to 1.8%, with combined capitals increasing by 1.7% and the combined regions by 2.1%.

The RBA meeting on the 7th of May indicated that we may experience higher interest rates for longer than anticipated, and has not ruled out a further increase in rates, however inflation is beginning to fall, albeit at a slightly slower pace than forecasted. However, with the fundamental undersupply of property, we anticipate the property market to remain strong throughout 2024.

Clearance Rates & Auctions week of 29th of April 2024

Property Values as at 1st of May 2024

Median Dwelling Values as at 1st of May 2024

Quick Insights

The Foreign Housing Fight

In his budget reply speech, Mr Dutton said he would put a two-year ban on foreign investors and temporary residents purchasing homes in Australia if the Opposition won the next federal election.

Ms Tu of "luxury property concierge" firm Black Diamondz, said that, contrary to the perception that foreign buyers were taking housing away from Australians, they injected money into the economy which has helped fund infrastructure and commercial development.

We expect this debate to continue until the next election.

Source: Australian Financial Review

Australia's Race to Lose

There is no doubt that red tape at all levels of government continues to exacerbate the housing shortfall in Australia, with other comparable countries doing a far better job.

Victoria and NSW are experiencing the longest average development approval wait times at 144 and 114 days respectively, according to new research by the federal Treasury.

Source: Australian Financial Review

Author: Filippo Sciacca, Director - Investor Relations, Asset Management and Compliance

Funds operated by this manager:

ASCF High Yield Fund, ASCF Premium Capital FundASCF Select Income Fund

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