As we head into March, the looming Federal election, increased property listings, and the rumble of an imminent interest rate rise has seen the heat come out of the market in most capital cities.

Vendors keen to take advantage of the pricing boom have come out in force to list their properties, while prospective buyers, feeling uncertain about what may be around the corner, are thinking twice before taking the plunge.

CoreLogic reports that the gap between Australia’s house and unit market has hit a record in 2022. Despite record annual growth for both units and houses, a disparity of 28.3 per cent exists between property values. Although housing growth traditionally outpaces unit growth, the performance gap over the last year has been notably higher. Unit owners looking to upsize and investors should notice better growth towards the end of 2022 due to predicted interest rate rises and affordability constraints.

Vacancy rates across Australia have fallen to below one per cent in most capital cities. Driven by landlords who want to cash in on the property boom, data out of Suburbtrends shows that one in ten investment properties nationwide are being sold off. The selloff trend may increase pressure on the rental market for tenants already struggling with surging rents.

Download and read the full Market Essentials – March 2022 Report.