It's time for our monthly macro property market update for December 2014 with a few choice graphics from our chart packs.
Part 1 - Demand: Population Growth
Population growth is all going to be about Greater Sydney and Greater Melbourne in 2015, with huge absolute population growth expected and net interstate migration away from New South Wales falling to the lowest level ever recorded.
More details on what to expect from the most up to date population trends can be found here.
Part 2 - Demand: Jobs, Jobs Jobs!
There is no need to reproduce the entire contents of our entire chart packs here in one blog entry, merely to note that property buyers need to remember these three words: research, research and research!
Note that while unemployment rates may be very low in the inner suburbs of Sydney and Brisbane, regional areas often enjoying few such luxuries.
Part 3 - Demand: Housing Finance
As a result it is the properties favoured by investors - those located in the inner suburbs of capital cities, particularly Sydney, Melbourne, and next to go, Brisbane - which are outperforming, while plenty of regional centres and outer suburban areas are lagging badly.
Owner-occupier commitments may be rising in dollar value terms in most locations...
But in terms of the number of loans being written, Victoria has already rolled and South Australia is already well past its peak.
Sydney looks solid, and the other out-performer in 2015 will be Brisbane.
Investor loans on the other hand are trending higher in the four largest states.
Investor activity in Queensland is rising and is up to its highest level since 2007. The outlook looks good for Brisbane here too.
Part 4 - Rental Yields and Interest Rates
Rents in Sydney have remained very robust and are still growing at around 4-5 percent per annum, reflective of there being no oversupply of dwellings in the harbour city.
Part 5 - Supply: The approvals pipeline
For such a populous city the levels of detached housing construction in Greater Sydney are absolutely nowhere by comparison.
However, an oversupply of apartments is going to land squarely in Melbourne (see link!) with some areas already well oversupplied.
It has been heartening for Greater Brisbane to see that unit approvals have now eased back considerably after a big pick-up in 2014 - it is possible to have too much of a good thing.
Part 6 - Supply: Vacancies and stock on market
Inner and middle ring Sydney is also very tight, with vacancy rates hovering around just 1.5 percent.
Melbourne is not a tight market, and there is a net oversupply of units in the Victorian capital.
Part 7 - Dwelling prices
Sydney continuing to be the hottest capital in 2015, with Brisbane also now set to pick up.
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