(Australian Associated Press)
PROPERTY DEMAND IN APRIL STATE BY STATE:
NSW – Buying demand down 7.8 per cent; rental demand down 7.6 per cent
VIC – Buying demand down 1.6 per cent; rental demand down 6.6 per cent
QLD – Buying demand down 5.4 per cent; rental demand down 3.7 per cent;
WA – Buying demand up 2.7 per cent; rental demand up 3.2 per cent
SA – Buying demand down 4.8 per cent; rental demand down 0.6 per cent
ACT – Buying demand up 5.8 per cent; rental demand down 17.2 per cent;
TAS – Buying demand down 0.2 per cent; rental demand down 5.3 per cent;
NT – Buying demand down 4.0 per cent; rental demand down 5.7 per cent.
Demand figures based on visits to buy or rent section on realestate.com.au
Source: REA Group Property Demand Index
NSW witnessed the biggest drop in property demand in the nation in April, as unaffordability cut buyers out of the Sydney market.
The latest REA Group Property Demand Index dropped 4.3 per cent nationally in April following Australian Prudential Regulation Authority’s cooling measures, the restrictions by banks on lending, as well as the Easter and Anzac Day holidays, the property group said on Wednesday as it released its latest data.
Queensland experienced the second-highest drop in buyer demand, while Victoria saw only a small drop despite high levels of supply, it said.
“Demand is still well above the same time last year and higher than the previous peak in November 2016,” REA Group Chief Economist Nerida Conisbee said.
“In December 2016, demand also dropped slightly when the banks increased interest rates independently of the RBA, however, buyers ploughed back into the market in January and by March we hit another peak in demand.”
The REA Group said it is impossible to predict if another peak in demand will occur again and if buyers are just reacting to the changes.
The index also showed national rental demand for the month declined, suggesting high levels of investor activity is providing sufficient rental housing.
The findings mirror statistics released by the CoreLogic Hedonic Home Value Index on Monday which showed Sydney home prices stagnated in April, leading to the lowest rise in capital city prices in almost a year and a half.
Australian capital city home prices rose a mere 0.1 per cent in April, the CoreLogic Index revealed.
In South Australia, the REA Index showed buyer demand declined in April, while there was still very strong demand in Tasmania.
Western Australia appeared to buck the trend, with increasing demand from buyers and renters across the state, while the ACT was described as a “standout”.
“ACT was a standout in April, one of the few markets to see an increase in demand from buyers, with the index up year-on-year as well as over the month,” it said.
Rental demand, however, took a hit.
And in the Northern Territory, a drop in buyer demand over the month was offset by a positive annual rate, suggesting the housing market is in the early stages of recovery.