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LH Benchmark_Nineteenth_Ed

Welcome The year to March 2018 has seen regional and rural property markets return a mixed performance. Across the combined regional areas of the country, overall settled sales of houses and rural properties trended 4.6% lower over the year. While lower activity was generally evenly spread across the nation, the largest fall in sales activity has been recorded across regional NSW, where settled sales trended 9.3% lower year on year. Despite the reduction in volume, the overall value of regional house and rural property sales edged 0.7% higher over the year to reach $67.8 billion, highlighting that property values are still generally trending higher even as activity softens. The regional residential sector has been more resilient to lower volumes, with transactional activity holding reasonably firm over the year (-0.4%) for residential house sales. Rural and agricultural property sales have been the main driver of lower volumes, with settled sales estimated to be 13.2% lower year on year, primarily driven by a 22% fall across regional New South Wales and a 10.2% fall across regional Victoria. With rural commodity prices trending higher and further downwards pressure on the Australian dollar, demand for agricultural exports is expected to follow suit. This has the effect of attracting capital to the sector and results in continuing demand for rural and agricultural property sales. The latest RBA rural commodity price index was tracking at the highest level since January 2015. The improved market fundamentals may be at least partially offset by tighter finance conditions which are having a dampening effect on market activity. Mark Brooke General Manager Landmark Harcourts 0419 301 814 mark.brooke@landmarkharcourts.com.au


LH Benchmark_Nineteenth_Ed
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