CoreLogic Home Value Index Report for 1st April 2025.
Key Insights from the Latest CoreLogic Australia Home Value Index (HVI), Property Market Update – April 2025
The Australian property market continues its dynamic trajectory, with the latest CoreLogic Home Value Index (HVI) report revealing fresh insights into housing trends nationwide. For Australian expatriates looking to invest or return home, understanding these market movements is crucial to making informed financial decisions.
National Market Performance
According to the CoreLogic HVI for April 2025, Australian dwelling values have maintained an upward trajectory, albeit at a moderated pace compared to the rapid growth seen in 2023 and early 2024. National home values rose by 0.5% over the past month, marking the 2nd consecutive monthly increase. The annual growth rate now stands at 3.4%, reflecting continued demand, low stock levels, and resilient economic conditions.
Monthly Capital City Trends
Sydney: Home values increased by 0.3% in April, driven by tight supply and strong buyer interest in high-demand suburbs.
Melbourne: The market remains relatively stable, recording a substantial 0.5% increase. Inner-city apartments are seeing renewed interest.
Brisbane: One of the stable areas, Brisbane saw values rise by 0.4%, continuing its post-pandemic boom.
Perth & Adelaide: These cities remain highly competitive, with a price growth of 0.2% and Adelaide the strongest at 0.8%, fueled by affordability relative to Sydney and Melbourne.
Canberra, Hobart & Darwin: Mixed conditions prevail, with Darwin's 1% increase the strongest, while Hobart's was neutral with 0.2%. Canberra and Hobart decline by -0.4% for the month.
Regional Market Insights
Regional housing markets have performed strongly, mainly in lifestyle destinations and key employment hubs. Coastal and tree-change regions remain attractive for buyers, with price growth outpacing some capital cities. However, affordability constraints and rising interest rates temper demand in some areas.
REG TAS +0.9%
REG WA +0.8%
REG SA +1.4%
REG QLD +0.6%
REG VIC +0.4%
REG NSW +0.3%
Rental Market Update
The rental market remains tight, with national rents increasing by +0.6% in April. Vacancy rates continue to hover at historic lows, particularly in major cities, where rental demand is outstripping supply. This presents an opportunity for Australian expats looking to invest in rental properties, as yields remain strong despite rising home values.
Interest Rates & Market Outlook
The Reserve Bank of Australia (RBA) has maintained the cash rate at 4.10%, with speculation about potential rate cuts later in the year. While borrowing costs remain elevated compared to pre-2022 levels, market sentiment remains positive, particularly as inflationary pressures ease.
Looking ahead, the property market is expected to continue its gradual growth, supported by strong population growth, housing undersupply, and resilient employment conditions. However, economic uncertainties and affordability challenges could impact buyer sentiment in the months ahead.
What This Means for Australian Expats
For Australian expatriates, the current market presents both challenges and opportunities. Key takeaways include:
Investors: Rental yields remain strong, particularly in undersupplied markets.
Homebuyers: Prices are still rising, so strategic purchases in high-growth suburbs can be beneficial.
Returnees: If planning to move back to Australia, monitoring market trends and exchange rates will be essential to securing the best property deal.
Final Thoughts
The Australian property market remains resilient, with steady price growth and strong rental conditions. For expats considering their next property move, staying informed and working with trusted professionals will be key to making the most of current market conditions.
Stay tuned to THE EXPATRIATE for further updates and expert insights on the Australian property market.
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