Australian Secure Capital Fund - Market Update Australian Secure Capital Fund July 2024 Property prices across the capital cities have risen yet again, bringing the 17th consecutive month of price growth with June's 0.7% increase, taking growth to 8% across the nation for the 2023-24 Financial year. Yet again, Perth has experienced the largest growth with a further 2% increase, followed closely by Adelaide with 1.7% and Brisbane with a 1.2% increase. Sydney, Canberra and Hobart also experienced growth, albeit it to a lesser degree, with 0.5%, 0.3% and 0.1% respectively. Property prices in Darwin remained stable, whilst Melbourne saw a reduction of 0.2%. The financial year data is nearly all positive, with all capital cities experiencing growth, excluding Hobart which received a small reduction of 0.1% for the year. Perth, Brisbane and Adelaide all experienced growth well into the double digits, with Perth leading the way with a mammoth 23.6% increase, followed by Brisbane and Adelaide with 15.8% and 15.4% respectively. Sydney, Darwin, Canberra and Melbourne also finished the year in the positive, with 6.3%, 2.4%, 2.2% and 1.3% respectively. Growth wasn't just experienced in the capitals, with the regions also increasing by 7%. Property Values as at 30th of June 2024Median Dwelling Values as at 30th of June 2024
Quick InsightsLarger LoansThe average new owner-occupier home loan is at $626,055 nationally, hitting a record high, as the growth housing markets of Perth, Brisbane and Adelaide surge higher, according the latest official lending figures. "It's astounding to think owner-occupiers are, on average, taking out larger loans than ever before despite the fact the cash rate is sitting at a 12-year-high.", said Sally Tindall, research director at comparison website, RateCity.com.au. Source: Australian Financial Review
Construction Costs & Increasing Interest RatesHigh interest rates and construction costs are now choking off the supply of new housing. High construction costs in particular are being singled out amid a complex mix of factors that have pushed up the cost of building in most capital cities. "There has been some relief in access to inputs and labour, and in the prices of some early-stage inputs, but labour costs remain elevated and the regulatory burden high.", investment banking firm Barrenjoey's chief economist Jo Masters said. 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 Fund, ASCF Select Income Fund |