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, March 2021 quarter, in English
Read the full URBAN IQ report, March 2021 quarter, in Mandarin
Summary of Key Findings
March Quarter 2021
KEY STATS:
Economic rebound
National Gross Domestic Product (GDP) increased by 1.79% from the previous quarter. Importantly, quarterly GDP has also surpassed pre COVID–19 levels.
HomeBuilder
The hugely successful scheme resulted in 99,253 new build applications and 22,110 renovation applications.
Employment
Official employment data from the ABS shows Victoria gained 69,900 jobs over March quarter 2021, which accounts for a third of the total national job increase. Total wages paid in Victoria at the end of March was 7.2% higher than pre–pandemic levels. The corresponding figure for Australia was lower at 5.6%.
Sentiment
Both business and consumer sentiment are at new highs, well above pre-COVID sentiment levels.
Commencements
Detached house commencements remained relatively strong over 2019/20, after only edging down by 1.3% to 36,080 starts.
Affordability
Most suburbs have experienced a significant improvement in this ratio through 2019 and into 2020,
Residential market activity
There were 8,224 auctions in March quarter 2021, with a robust clearance rate of 84.4%.
House price of $1,004,500 (+8.8% change from the previous quarter, and +12.2% from the corresponding quarter a year earlier)
Unit price of $672,500 (+4.8% from the previous quarter, +4.9% from the corresponding quarter a year earlier)
Land price of $309,700 (+2.2% change from the previous quarter, and -0.4% from the corresponding quarter a year earlier)
Lending activity
Surprisingly, new loans for residential land declined by 27.0% over March quarter 2021. While lot sales activity escalated further during the first three months of 2021.
The total value of new owner occupier loans (excluding refinancing) in March 2021 increased by 14.2% compared to the previous quarter; investor loans increased by 23.6% over the same period.
Building Activity
Victoria recorded 16,978 dwelling approvals in March quarter 2020, equating to a 7.6% increase on dwelling approvals in the same quarter in 2020.
The 12,147 new detached house approvals in March quarter 2021 is a new record, improving by 11.3% from the previous quarter’s long term high, and represented a sizeable 37.5% increase on house approvals in the same quarter in 2020.
However 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 59.7% on approvals in the same quarter in 2020.
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.
