UDIA Victoria, in partnership with RPM Group, 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 Q1 2022, in English
Read the full URBAN IQ Q1 2022 in Mandarin
Summary of Key Findings
- Australia’s GDP increased 5.31% in the 12 months to Q1 2022.
- While still relatively high (11.4%), the household savings ratio is well down from the peaks seen through 2020 and 2021.
- Overall private consumption, the largest segment of GDP, escalated by a solid 1.49% over the quarter.
- The RBA has increased the cash rate by 75 basis points in the last two months. This has been in response to stronger than expected inflation of 5.1% in Q1 2022, double the target band of between 2 and 3%.
- Australia’s inflation sits at 5.09%, whereas CPI for new dwellings sits at 5.7%.
- Growth in full time employment has been strong in Victoria, with the state adding 65,500 full time jobs in Q1 2022. Overall unemployment is hovering around the 4% mark.
- The tight employment market has not yet manifested in higher wages with CPI growth outpacing wage growth.
- Rising cost of living expenses and the expectation of escalating interest rates has driven a deterioration of the index to 90.4 – it’s lowest reading since August 2020, or Victoria’s second major lockdown.
- Victoria’s population declined by 6,004 during Q3 2021 (latest available data). Natural increase rose, but was offset and then some by both overseas and interstate migration recording outflows of 10,828 and 2,128 respectively.
- The relative affordability advantage of new homes in growth areas over established dwellings is pushing buyers out from middle rings suburbs, and promoting lot price growth.
- Melbourne’s median house price is $1,121,500 – a -0.3% change from Q4 2021 but an 11.3% increase from Q1 2021.
- Median median unit price is $684,000 – a -0.9% change from Q4 2021 but a 2.8% increase from Q1 2021.
- Melbourne’s median lot price is $366,000 – a 5.9% change from Q4 2021 and an 18.4% increase from Q1 2021.
- The total value of new owner occupier loans contracted in Q1 2022, down 10.2% from the previous quarter.
The Urban IQ Property Market reports are produced for UDIA Victoria by RPM Group.
The reports provide a quarterly update on the Victorian residential market including economic activity, prices, finance, building, sentiment and affordability metrics.