UDIA Victoria, in partnership with RPM Real Estate, has released the latest quarterly URBAN IQ research publication.
The research provides data, research and analysis to help our members understand the conditions in which we are operating.
Read the full URBAN IQ report, June 2021 quarter, in English
Read the full URBAN IQ report, June 2021 quarter, in Mandarin
Summary of Key Findings
June Quarter 2021
KEY STATS:
Economic Update
Gross Domestic Product (GDP) increased by 0.67% from the previous quarter. This growth rate is similar to quarterly increases recorded during 2019.
Dwelling investment has continued its upward trend over June quarter 2021, evident by the strong growth in new residential lending, in both volume and dollar terms.
The Consumer Price Index (CPI) increased by 0.76% across Australia in June quarter 2021, compared to the previous quarter, and jumped by a higher 3.85% from the same quarter in 2020.
Official employment data from the ABS shows Victoria gained 23,800 jobs over June quarter 2021, representing 21% of all jobs created nationally during the same three month period.
Development Approvals
Victoria recorded 18,908 dwelling approvals in June quarter 2020, equating to a 27.0% increase on dwelling approvals in the same quarter in 2020. This led to total approvals during the twelve months to June 2021 of 67,680 dwellings being 12.8% above the corresponding figure twelve months to June 2020.
The 13,743 new detached house approvals in June quarter 2021 is a new record, escalating by 12.8% from the previous quarter’s long term high, and represented a sizeable 42.5% increase on house approvals in the same quarter in 2020.
Victoria recorded 1,657 approvals of flats/units/apartments in buildings of 4 storeys of higher in March quarter 2021, which was a contraction of 18.1% from the previous quarter and 61.3% on the same quarter in 2020.
Residential market activity
Over June quarter 2021, sales recorded a preliminary median:
- House price of $1,010,000 (+0.2% change from the previous quarter, and +17.3% from the corresponding quarter a year earlier).
- Unit price of $679,500 (+2.1% from the previous quarter, +9.4% from the corresponding quarter a year earlier).
- Land price of $318,000 (+2.9% change from the previous quarter, and +1.4% from the corresponding quarter a year earlier).
The auction clearance rate remained high at 82.9%, despite auctions held increasing by 44% to 11,830 in June quarter.
Subsequent tightening supply levels are expected to apply increased upward pressure on lot prices going forward, with the median lot price still undervalued relative to the median house price.
Lending activity
The number of new owner occupation loans in Victoria increased by a further 9.0% in June quarter 2021, from the previous quarter, reaching 37,221 approvals.
New loans for the construction of a new dwelling fell by 10.8% in June quarter 2021, this was coming off a record number in the previous quarter.
Quarterly growth in the number of new first home buyer loans of 4.4% over June quarter 2021 resulted in a record of 13,717 first home buyer loans.
Demographics
Victoria’s population declined by 16,635 persons during December quarter 2020 (latest available data), lowering its estimated resident population to 6,661,736 persons. This followed a contraction in population of 18,259 persons in the previous quarter.
The Urban IQ Property Market reports are produced for UDIA Victoria by RPM Real Estate Group.
The reports provide a quarterly update on the Victorian residential market including economic activity, prices, finance, building, sentiment and affordability metrics.
