![\"key](\"https:\/\/propertyupdate.com.au\/wp-content\/themes\/oldpaper\/img\/keys.svg\")
<\/picture><\/span><\/p>\nKey takeaways<\/p>\n
The softer market conditions have not impacted all markets and value segments equally. <\/p>\n
Similar trends can be seen across individual capital cities. <\/p>\n
Brisbane continues to stand out amongst the capital city markets. <\/p>\n
Each of the rest of the state markets recorded positive unit value growth over the quarter. <\/p>\n
National unit rents rose 1.1% in March compared to a 0.3% rise in national unit values.<\/p>\n<\/div>\n<\/div>\n
The annual performance gap between houses and units fell further this month (8.7%), as both markets slipped further from their peak rate of growth recorded in January.<\/strong><\/p>\n At the national level, units recorded a 0.3% rise in values over March, in line with the growth rates recorded in January and February, resulting in a first-quarter appreciation of 0.9%.<\/p>\n This is equivalent to a $5,464 increase in median unit values through the quarter.<\/p>\n National house values rose 0.8% in March and 2.8% over the three months to March, thanks in part to strong growth in QLD and SA.<\/p>\n The rise in house values through the quarter was equivalent to a rise of $21,690 in median values.<\/p>\n While national houses are still recording stronger value growth compared to units, houses have also recorded a faster deceleration in the pace of quarterly growth.<\/p>\n Since reaching a cyclical peak in May 2021, the pace of quarterly house growth has recorded a 4.9 percentage point fall, compared to a 3.8 percentage point fall for unit quarterly growth.<\/p>\n Similarly, the slowdown in values can be seen in the annual growth trend shown in Figure 1, with both houses and units moving into a downswing trend after recording cyclical peaks in January.<\/p>\n Amid higher inflation and the rising cost of living, prospective buyers are finding it harder to save for a deposit, while the amount required for a deposit has also increased.<\/p>\n Assuming a 20% deposit level, the average house deposit has increased by approximately $36,000 over the past two years, while the typical unit deposit has increased by around $15,000.<\/p>\n As noted in previous CoreLogic research, increasing investment in higher density dwellings has a significant role to play in alleviating affordability concerns, because higher density housing is generally more affordable.<\/p>\n Additionally, increased housing density across key transport lines can help maximise the efficiency and use of infrastructure.<\/p>\n Over the month of March, growth in houses was 0.5% across the combined capital cities, outperforming units (which were steady over the month).<\/p>\n However, combined regional house and unit values both recorded a monthly appreciation of 1.7%.<\/p>\n While capital city unit values remained flat over the month, the lower quartile of unit values recorded a modest rise of 0.9%, while the middle and upper segments recorded value changes of 0.2% and -0.5% respectively.<\/p>\n Historically, the upper quartile value trend has been more volatile with higher peaks and deeper troughs.<\/p>\n Figure 2 shows the rolling quarterly growth rate for combined capital city units by value segment.<\/p>\n Over the three months the March, upper quartile unit values fell by -0.7%, while the middle and lower quartiles both recorded positive quarterly growth (0.5% and 2.4% respectively).<\/p>\n Unit values are beginning to record quarterly declines across the more expensive cities of Sydney (-0.6%) and Melbourne (- 0.2%), while relatively cheap cities like Brisbane and Adelaide are still recording quarterly growth above 4%.<\/p>\n With a median value of $833,815, the typical Sydney unit is approximately $355,000 more than the typical Brisbane unit, and more than double the price of the average Adelaide unit.<\/p>\n At the suburb level, 51.4% of Sydney’s unit markets analysed in CoreLogic\u2019s Mapping the Market Report recorded a decline in values over the first quarter, with a number of the largest falls recorded in the city’s Northern Beaches region.<\/p>\n Across Melbourne, 58.0% of the unit markets analysed recorded a decline in values, with the largest value declines recorded across the inner-city markets.<\/p>\n Brisbane recorded a new cyclical high in monthly (1.6%), quarterly (4.6%), and annual growth rates (15.1%) in March.<\/p>\n The typical Brisbane unit recorded a $63,000 rise in values over the past 12 months.<\/p>\n Just one Brisbane suburb recorded a fall in unit values over the first quarter of the year.<\/p>\n While Adelaide units continue to record strong monthly growth rates, quarterly growth appears to be slowing, with the pace of quarterly growth decreasing from 4.4% in January to 4.2% over the three months to March.<\/p>\n Perth has recorded a surprise reversal in its quarterly growth trend, with the reopening of the WA border potentially pushing unit values 0.7% higher over the three months to March.<\/p>\n While quarterly growth has remained positive across Hobart, Darwin, and Canberra, the pace of growth continued to ease over March.<\/p>\n Each of the \u2018rest of state\u2019 markets recorded positive unit value growth over the quarter.<\/p>\n Regional Qld continued to lead the pace of growth, recording a quarterly unit value increase of 5.9%, followed by regional WA (4.3%), regional Victoria (3.8%), and Regional NSW (3.6%).<\/p>\n At the other end of the spectrum, regional SA units recorded the smallest increase in values, rising just 0.5% over the quarter, while regional Tasmanian unit values rose by 1.7%.<\/p>\n While monthly unit and house growth were on par at the combined regionals level, four of the six \u2018rest of state\u2019 regions recorded stronger unit growth than houses.<\/p>\n Along with affordability, variations in total advertised unit supply continue to be an important factor influencing deviating growth trends.<\/p>\n Over the four weeks to the 10th of April, national unit listings were -5.5% below the stock levels recorded this time last year and -14.5% below the previous five-year average.<\/p>\n While still low, total listing levels have started to normalise compared to the volumes recorded in January, (-11.5% and -20.4%).<\/p>\n Total listing supply levels are now above average in Sydney and Melbourne, while advertised unit inventory remains tight across Brisbane, Adelaide, Hobart, Canberra, and the combined regional unit market.<\/p>\n National unit rents rose 1.1% in March compared to a 0.3% rise in national unit values.<\/p>\n Continuing the trend seen throughout the first quarter of the year, national unit rents recorded a higher monthly rental rise (1.1%) compared to houses (1.0%), resulting in quarterly rental growth of 3.0% and 2.4% respectively.<\/p>\n A similar trend can also be seen across the combined capitals, with capital city units rising 3.1% over the first quarter, compared to a 2.2% rise in house rents.<\/p>\n Capital city unit rents are now rising at their fastest quarterly rate since June 2008 (3.4%).<\/p>\n This is with the exception of Darwin and regional SA which recorded a -0.6% and -0.3% rental reduction.<\/p>\n Hobart and Regional Queensland led the pace of unit rent growth, both recording a rent rise of 1.6%, followed by Melbourne (1.3%) and Adelaide (1.3%).<\/p>\n Despite recording the strongest rental growth over the first quarter, Melbourne unit rents are still -1.9% below their pre-COVID levels.<\/p>\n Amongst the capitals, Sydney recorded the strongest annual growth rate (8.3%) over the 12 months to March, after a peak to trough fall of 7.2% in the first half of the pandemic.<\/p>\n Over the Year to March, Regional Tasmania (14.4%), Regional QLD (12.1%), and regional SA (11.2%) recorded the strongest unit rental growth, while Perth (5.7%) Darwin (5.8%) and Adelaide ( 6.6%) recorded the weakest.<\/p>\n With rent growth continuing to outpace value appreciation, national gross rental yields for units (3.74%) rose for the third consecutive month, up 8 basis points<\/span> since bottoming out in December (3.66%).<\/p>\n Despite the recent rise, national unit yields are still 20 basis points<\/span> below the yields recorded this time last year (3.74%).<\/p>\n Across the capital city markets, relatively affordable markets like Darwin (6.66%) and Perth (5.45%) continue to return the best rental yields among the capitals, while the more expensive market of Sydney (3.11%) and Melbourne (3.58%) continue to return the lowest.<\/p>\n Perth (5.45%), regional SA (6.10%) and regional WA (8.08%) are all now recording the strongest unit yields compared to this time last year, while Melbourne yields (3.58%) are in line with those recorded in March 2021.<\/p>\n![\"Unit](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/04\/unit-market6.jpg\")
<\/p>\n![\"01\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/04\/01-7.jpg\")
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Coming off the back of strong annual growth, affordability continues to be a key factor affecting market conditions.<\/p>\n<\/p>\nThe softer market conditions have not impacted all markets and value segments equally<\/span><\/h2>\n
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A similar trend can be seen across the individual capital cities<\/span><\/h2>\nBrisbane continues to be the stand-out performer amongst the capital city unit markets<\/span><\/h2>\n
<\/p>\nRegional unit markets continue to show some resilience in the face of slowing market conditions<\/span><\/h2>\n
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As the pace of value growth continues to slow, rental growth is surging<\/span><\/h2>\nUnit rents rose across all capital city and regional markets in March<\/span><\/h2>\n
<\/p>\nNational gross rental yields for units\u00a0 rose for the third consecutive month<\/span><\/h2>\n