Hotspotting

Terry Ryder & Tim Graham
Hotspotting

Prepare to embark on an exciting journey into the realm of hot property markets with Terry Ryder and Tim Graham! Terry & Tim from Hotspotting, are dedicated to providing the most accurate and unbiased research to help investors make informed decisions on where to buy. The Hotspotting Podcast brings you the latest data, trends, and market statistics, along with in-depth discussions on growth areas and the larger factors impacting Australia's property landscape. Terry & Tim regularly feature special guests from around Australia to share their industry insights and expertise to help investors cut through the noise. Whether you're a seasoned investor or a first-time buyer, this show is a must-listen for anyone looking to build their knowledge and make smarter investment choices. Terry Ryder, with over 35 years of experience as a specialist researcher and writer in residential property, offers expert insights that are completely independent and free from outside influences. Tim Graham has been a buyers agent and mortgage broker for over 13 years along with working in real estate all over the world. Join us on the Hotspotting Podcast and discover the hottest opportunities in the Australian property market today!

  1. 3 DAYS AGO

    Perth Market

    All the key indicators suggest that the Perth boom is past its peak and subsiding. Our analysis of all the major market jurisdictions across Australia, using a range of different performance metrics, indicates that Perth will not be the leading performer on price growth in 2025 – or anything close to it. After two consecutive years as the national leader on price growth, we feel confident in predicting that Perth is unlikely to repeat that performance in 2025.  Perth was undoubtedly the national leader on price growth in 2023. Its median house price rose 16 percent (the national average was 8.6 percent) and its median unit price increased 12 percent (national average was 6.4 percent).  In 2024 Perth repeated the performance, leading on both house prices (up 17 percent) and unit prices (up 19 percent), both more than three times national averages – but challenged in both categories by Brisbane and Adelaide. But it was evident in the latter part of the year that the rate of growth for Perth was slowing month by month. Earlier in 2024, the annual growth rate for houses was well above 20 percent. With each passing month, the annual growth rate is smaller, although it still appears to be impressive. And, indeed, there is a growing list of forward indicators which say Perth is on the wane. Perhaps most significant is that sales activity has declined, even though stock on the market has risen steadily since the middle of 2024. In this regard, Perth is the weakest of the major cities and regional markets, with activity steadily waning. Vacancy rates are also easing and rents are no longer rising rapidly. Indeed, according to the REIWA, there has been little rental growth in Perth since March 2024. With so many investor purchases in the past 2-3 years, rental supply has risen – changing the supply-demand equation. Other sources indicate a slowdown in population growth and less demand from investors. The buyer frenzy is subsiding, which is confirmed by our conversations with real estate professionals at the coalface of the Perth market. For those still interested in buying in the Perth market, a key trend is that more buyers are pivoting to attached dwellings.  One of the main catalysts for the Perth boom of recent years was its cheap houses, but now the city’s median house price is similar to Melbourne and Adelaide. The relative bargains are now being found in the unit market and there are a number of good options there. But home buyers and investors considering the Perth market need to be aware that the peak of the market has passed and the stellar price growth of 2023 and 2024 is unlikely to be repeated.

    4 min
  2. 17 JAN

    Adelaide Ascends

    If you’re confused about what’s happening with rents in Australia, you can be forgiven.   That’s especially so if you use news media as your main source of information about residential real estate.   The information – or perhaps more correctly, misinformation – in news media is highly confusing and in many cases contradictory, with one headline saying the complete opposite to another.   Here are two headlines that appeared on the same day, the 10th of January:   The worst is over: slowest rise in rents in four years Affordability crisis: tenants feel the pinch as rents surge   So, as usual, Australian real estate consumers need to look elsewhere, somewhere other than mainstream media, to find out what’s really happening in housing markets.   One of the strange things about residential rents, which pops up regularly in news media, is the bizarre notion that if the latest stats suggest that the rate of growth in rents is slowing, then tenants across the nation are celebrating.    They’re apparently popping champagne corks because the rate of rental growth currently is less than it was last year.   Let’s be clear: the greatest wish of tenants is NOT slower growth in rents. It’s NOT for rents to stop growing. And contrary to the apparent belief of The Greens, they don’t want a rental cap. What they want is for rents to FALL.   People who rent in Australia, about a third of households, want to see a bigger choice of places to live in – in other words, they want higher vacancies. And they want rents to come down.   There are two main reasons why that isn’t happening and cannot happen:  (1) because vacancies are at historic lows, as they have been now for three years, and there are no remedies in sight; and  (2) because interest rates are persistently high and the owners of rental properties need high rents to cover their costs.   Having said that, it’s clear that - in some locations - rents have reached a ceiling and are unlikely to go much higher in the short term. Tenants cannot keep paying higher and higher rents – and higher and higher proportions of their incomes – on rental accommodation.   That is why the rate of growth in rents has slowed in SOME – but certainly not all – locations across Australia.   But the true wish among tenants – for rents to decline – is highly unlikely to happen any time soon.   SNIPPET:   There’s a lot of confusing and conflicting information in mainstream media about what’s happening with residential rents.   Some headlines have declared that the worst is over for tenants because the rate of growth in rents is slowing down – as a national average.   But other headlines have claimed that rents continue to surge higher and tenants continue to be in a world of pain.   The reality is that rents are still rising, although in SOME locations the rate of growth is slowing down.   But with vacancy rates continuing to be at historic lows in most places across Australia, and interest rates stubbornly high, we don’t have the conditions for rents to fall any time soon – particularly as there are no solutions in sight for the shortage which is causing rents to be high and rising.

    3 min
  3. 17 JAN

    Rent Confusion

    If you’re confused about what’s happening with rents in Australia, you can be forgiven.   That’s especially so if you use news media as your main source of information about residential real estate.   The information – or perhaps more correctly, misinformation – in news media is highly confusing and in many cases contradictory, with one headline saying the complete opposite to another.   Here are two headlines that appeared on the same day, the 10th of January:   The worst is over: slowest rise in rents in four years Affordability crisis: tenants feel the pinch as rents surge   So, as usual, Australian real estate consumers need to look elsewhere, somewhere other than mainstream media, to find out what’s really happening in housing markets.   One of the strange things about residential rents, which pops up regularly in news media, is the bizarre notion that if the latest stats suggest that the rate of growth in rents is slowing, then tenants across the nation are celebrating.    They’re apparently popping champagne corks because the rate of rental growth currently is less than it was last year.   Let’s be clear: the greatest wish of tenants is NOT slower growth in rents. It’s NOT for rents to stop growing. And contrary to the apparent belief of The Greens, they don’t want a rental cap. What they want is for rents to FALL.   People who rent in Australia, about a third of households, want to see a bigger choice of places to live in – in other words, they want higher vacancies. And they want rents to come down.   There are two main reasons why that isn’t happening and cannot happen:  (1) because vacancies are at historic lows, as they have been now for three years, and there are no remedies in sight; and  (2) because interest rates are persistently high and the owners of rental properties need high rents to cover their costs.   Having said that, it’s clear that - in some locations - rents have reached a ceiling and are unlikely to go much higher in the short term. Tenants cannot keep paying higher and higher rents – and higher and higher proportions of their incomes – on rental accommodation.   That is why the rate of growth in rents has slowed in SOME – but certainly not all – locations across Australia.   But the true wish among tenants – for rents to decline – is highly unlikely to happen any time soon.   SNIPPET:   There’s a lot of confusing and conflicting information in mainstream media about what’s happening with residential rents.   Some headlines have declared that the worst is over for tenants because the rate of growth in rents is slowing down – as a national average.   But other headlines have claimed that rents continue to surge higher and tenants continue to be in a world of pain.   The reality is that rents are still rising, although in SOME locations the rate of growth is slowing down.   But with vacancy rates continuing to be at historic lows in most places across Australia, and interest rates stubbornly high, we don’t have the conditions for rents to fall any time soon – particularly as there are no solutions in sight for the shortage which is causing rents to be high and rising.

    3 min
  4. 17 JAN

    Albanese Housing Denial

    The Prime Minister is suffering from a serious case of denial if he believes that his press conference soundbite about building 1.2 million new homes is plausible, credible and achievable.   Anthony Albanese had his big media event in August 2023 when he stated this objective of 1.2 million new homes in five years – but almost 18 months later it’s abundantly clear to everyone except members of the government that it’s not going to happen – indeed, was NEVER going to happen.   It’s almost as if the PM and his cohorts believed that staging the publicity event in 2023 was all they needed to do - make the announcement of a target which has never been achieved in the nation’s history and then sit back and watch it happen. Job done.   Here we are in 2025 and all the official data shows that building approvals - and in particular building commencements - are so far behind the levels needed to reach the target, that it can already be dismissed as fanciful – indeed, almost childlike in its naivety and idealistic stupidity.   In the past 12 months building approvals totalled around 170,000 – but approvals don’t always translate into actual construction, particularly right now with all the problems in the home building industry.    So we are so far short of where Australian needs to be to meet the target that there is really no realistic hope of achieving it.   And it’s noteworthy that the original target date was mid-2029 and now, quietly, hoping that no one notices the Federal Government has moved the target date to 2030.   But when challenged by journalists about the stark lack of results, the PM becomes angry and defensive – as he has done at recent press conferences.   The Federal Government appears to think that the industry should just go out and build the homes because the Government says they should – and is oblivious to the long list of serious problems which are preventing it from happening.   Building companies are going broke at the rate of nine per day and that is happening for a reason – but you have to wonder if the Federal Government is even aware of this reality.   The cost of building new houses and in particular new apartments has become so high, so catastrophically high, that in many instances it’s not economically feasible to build them because the average buyer won’t pay the increasingly high price for new dwellings.  Is the PM remotely aware of that?   To build homes you need a healthy supply of tradespeople – but the industry has a chronic shortage and needs tens of thousands more to be able to create the dwellings needed – and there aren’t enough apprentices coming into the industry.   One of the reasons the home building industry can’t find the tradies it needs – and why the ones that exist are increasingly expensive – is because federal and state governments have initiated record levels of investment in infrastructure – and there were over $500 billion in projects happening in 2024 and more to come this year and beyond.   This has removed tens of thousands of tradies from home building - to work on the more lucrative headline projects initiated by politicians facing looming elections.   Is the Prime Minister aware of that? Because it’s one of the key reasons his media soundbite home-building target will not be achieved.   Does Anthony Albanese know that the average time it takes to build a house or an apartment has blown out enormously in recent years, thanks to bureaucracy and political interference in the process?  That the cost of building has escalated enormously because of new rules imposed by the various levels of government?  And those factors, plus persistently high interest rates, are the key issues that are sending building businesses broke at the rate of nine per day.   Australia has never created 1.2 million new homes in any five-year period in history and it won’t be happening in the five years following the August 2023 publicity stunt by the Prime Minister.   Sadly, Anthony Albanese is in denial about it, so the problems are unlikely to be fixed.   SNIPPET:   The Prime Minister is in denial if he believes that his press conference soundbite about building 1.2 million new homes is plausible, credible and achievable.   Anthony Albanese had his big media event in August 2023 when he stated this objective of 1.2 million new homes in five years – but almost 18 months later it’s abundantly clear to everyone - except members of the government - that it’s not going to happen – indeed, was NEVER going to happen.   Here we are in 2025 and all the official data shows that building approvals - and in particular building commencements - are so far behind the levels needed to reach the target, that it can already be dismissed as fanciful.   And it’s noteworthy that the original target date was mid-2029 and now, quietly, hoping that no one notices, the Federal Government has moved the target date to 2030.   But when challenged by journalists about the stark lack of results, the PM becomes angry and defensive – as he has done at recent press conferences.   Let’s be clear: Australia has never created 1.2 million new dwellings at any time in its history and it’s not going to happen in this five-year period – so the shortage will persist well into the future.

    5 min
  5. 18/12/2024

    Approvals V Construction

    Two very different headlines have summed up the problems for Australia’s ongoing housing shortage. One of the recent media headlines declared that building approvals were at a two-year high and that things were improving for the nation’s housing shortage.  The other described why building approvals are almost irrelevant – it said that project deferrals are occurring at a record rate. The reality of the current crisis is this: it doesn’t matter how many houses and apartments are approved for construction – and it doesn’t matter how many re-zonings state governments push through or what incentives they hand out to first-home buyers. Most real estate developments are not proceeding because they’re not financially viable. One of those media headlines read: Building approvals hit two-year high as apartment construction surges. This was incorrect - apartment construction is not surging – approvals are, but many projects are simply not being built because they’re not viable in the current environment. It’s so expensive to build that the end price for the dwellings would be far too high for most buyers – and therefore not financially feasible. In October, Australian dwelling approvals reached their highest level in 22 months - with nearly 15,000 new homes approved for construction during the month.  ABS data showed total dwelling approvals rose 4.2 per cent for the month, with approvals for apartments and townhouses jumping 25 per cent to over 5,800 units, the highest since May 2023 – but private house approvals fell 5.2 per cent. The AFR showed a startling lack of understanding of the problems in the industry when it declared in a headline: Worst has passed for new home building The article said: “The worst has passed for Australia’s medium- and high-rise housing sector, economists said on Monday, after a jump in approvals of new apartments, townhouses and semi-detached homes.” KPMG urban economist Terry Rawnsley said: “The bad times are starting to end … Even with interest rates being unchanged for the year, they still have that confidence that if they can get a project out of the ground they’ll be able to sell it at a profit.” But that, we think, was rather naïve – and others were less optimistic. The Property Council of Australia pointed out that apartment approvals were still at half their level of the development boom under way in FY2018. And Oxford Economics Australia senior economist Maree Kilroy said: “While the latest approval result for apartments was positive, we continue to expect a materially higher dropout rate to commencement.” In other words, many approvals would not translate into construction. She referred to utility connection bottlenecks and trade labour shortages as problems in the sector. Matthew Kandelaars of the Property Council said: “We need to get back to the construction levels seen nearly 10 years ago. We are now six months into the National Housing Accord’s ambitious target of delivering 1.2 million new homes and we cannot allow the target to slowly fade into the background over the next 4½ years.” According to a new report, money is still flowing into the construction industry but more and more of it is being dedicated to renovating. KPMG released analysis of spending in the residential construction sector, revealing that while spending on renovations has boomed over the past five years, new residential construction on a per-capita basis has hit a low not seen since 1988. Over the past five years, spending on new home building has dropped 14 per cent, adjusted for inflation. By comparison, the amount of funding flowing into renovations has increased by 6.5 per cent. KPMG said:  “For every nail hammered and brick laid in residential construction, 40 per cent of it is going into renovating a pre-existing home.” So the underlying problem remains. Regardless of how many dwellings are approved, far too few are proceeding to construction – so the fundamental shortage continues and there will continue to be upward pressure on prices and rents.

    5 min
4.4
out of 5
25 Ratings

About

Prepare to embark on an exciting journey into the realm of hot property markets with Terry Ryder and Tim Graham! Terry & Tim from Hotspotting, are dedicated to providing the most accurate and unbiased research to help investors make informed decisions on where to buy. The Hotspotting Podcast brings you the latest data, trends, and market statistics, along with in-depth discussions on growth areas and the larger factors impacting Australia's property landscape. Terry & Tim regularly feature special guests from around Australia to share their industry insights and expertise to help investors cut through the noise. Whether you're a seasoned investor or a first-time buyer, this show is a must-listen for anyone looking to build their knowledge and make smarter investment choices. Terry Ryder, with over 35 years of experience as a specialist researcher and writer in residential property, offers expert insights that are completely independent and free from outside influences. Tim Graham has been a buyers agent and mortgage broker for over 13 years along with working in real estate all over the world. Join us on the Hotspotting Podcast and discover the hottest opportunities in the Australian property market today!

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