Australian Property Market Reaches $11 Trillion Milestone, But Growth Slows

Australia's property market has reached a new high, with its total value surpassing $11 trillion. However, the pace of growth has slowed in recent months due to increased listing volumes and more cautious buyer behavior. Despite this, rental yields have compressed, indicating affordability constraints for tenants.

Key points:

• Market value: The total value of residential real estate in Australia has reached $11 trillion, an increase of $900 billion over the past year.
• Growth slowdown: National home values rose by only 1.0% in the September quarter, the slowest quarterly rise since March 2023.
• Rental market: Rental growth has slowed, with rents rising 0.1% over the quarter, the lowest rate in four years. Gross rental yields have compressed to 3.68%.
• Investor activity: Investors represent a significant proportion of buyer demand, making up 38.6% of new loan commitments.
• Outlook: The market is expected to see further moderation in value growth as new listings continue to rise, providing some relief for buyers.