Your Comprehensive Source for Australian Property Valuation News

Licensing & Regulation of Property Valuers in Australia

Property valuation plays a crucial role in the real estate industry, providing accurate and reliable assessments of property value. In Sydney, Australia, property valuers are essential in determining fair prices for both buyers and sellers. However, to ensure the quality and credibility of valuations, there is a professional and regulatory framework in place.

The Role of Valuers:

Valuers are trained professionals who assess the value of properties based on various factors such as location, condition, size, and market trends. Their expertise is crucial in determining fair property values, which are essential for accurate pricing, lending decisions, taxation, and other financial purposes.

Professional Standards and Licensing:

To maintain professionalism and ensure the competence of property valuers, licensing and regulation are necessary. The Australian Property Institute (API) is the leading professional body for property valuers in Australia. Valuers must obtain a bachelor’s degree in property or a related field, complete a recognized training program, and meet specific experience requirements before becoming licensed.

Valuer Regulation:

In addition to the professional standards set by the API, valuers in Australia are also regulated by various legislation, including the Real Property Act 1900 and the Valuers Act 2003. These acts outline the legal obligations and responsibilities of valuers, ensuring that they adhere to ethical practices and deliver accurate valuations.

Key Regulatory Bodies:

Several regulatory bodies oversee the licensing and regulation of valuers in Sydney, Australia. These include the New South Wales Valuer General, the Office of the Australian Valuer-General, and the Australian Securities and Investments Commission (ASIC). Each body plays a crucial role in maintaining the integrity of property valuations and protecting the interests of consumers.

Continuing Professional Development:

To ensure the ongoing proficiency of property valuers, continuing professional development (CPD) is mandatory. Valuers are required to participate in regular training programs and stay updated with industry trends, legal requirements, and professional ethics. This requirement ensures that valuers provide accurate valuations and maintain their competence in a fast-evolving real estate market.

Consumer Protection:

The regulatory framework for valuers in Sydney, Australia, is designed to protect consumers and maintain the integrity of property valuations. Through licensing, regulation, and ongoing professional development, valuers are held to high ethical and technical standards. This framework ensures that consumers receive reliable and accurate valuations, which are vital in making informed decisions in the real estate market.

Understanding the professional and regulatory framework of property valuers in Sydney, Australia, is essential for both consumers and industry professionals. With licensing, regulation, and ongoing professional development, valuers uphold high standards of competence and integrity. This ensures that property valuations are accurate, reliable, and trustworthy, contributing to a fair and transparent real estate market. Whether you are buying, selling, or investing, consulting a licensed property valuer provides peace of mind and ensures that you make informed decisions based on reliable valuations.

Rent Price Growth Reflects Increasing Housing Demand Across Australia

An in-depth look at rising rental costs across the country

At ValuNation Australia, we have been closely tracking rental price trends across Australia over the past year. Our analysis shows widespread growth, with over 90% of markets recording increased rents for both houses and units during the 2022-23 financial year. This reflects surging demand in the face of constrained supply, driven by factors like strong migration, investor wariness, and affordability challenges.

In this comprehensive article, we will explore:

• The key drivers pushing rental prices higher
• How different cities and regions are being impacted
• Where rental growth has been most extreme
• What the future outlook suggests

Key Factors Behind Rising Rents

Several influences have aligned to create the perfect conditions for rental price growth over the past year:

migrations boosted renter numbers, especially in inner-cities. 2022 saw record migration into Australia, especially from overseas students and skilled workers. Most new arrivals need rental accommodation, heavily concentrated in metro areas.

Investors retreated as rates rose, choking supply. Higher interest rates from mid-2022 dampened investor appetite. Housing investment loans dropped almost 24% between April 2022 and May 2023. With less investor stock added, supply tightened.

Affordability challenges forced renters to absorb increases. Surging values have stretched budgets over recent years. Renters have shouldered rising rents as they lack alternative options within their price range.

This demand-supply imbalance has seen national rents rise over 13% for houses and 10% for units over the past year. Tight rental conditions are likely to persist in the near term, sustaining upward pressure on rents.

Rental Growth Across Australian Cities

The rental boom has played out differently across Australia according to local economic conditions. Here we summarise key trends:

Adelaide

• 100% of suburbs saw rental increases for houses and units
• Houses rose 8-14% across metro area
• Units soared over 15% in the Inner Southern suburbs

Adelaide’s rental market has lagged the eastern capitals until recently. Strong interstate migration is now driving rents higher as vacancy rates tighten below 1%. More affordable prices offer migrants value compared to Sydney and Melbourne.

Brisbane

• 100% of unit markets recorded rental increases
• Houses rose 11-15% across Inner City and East
• Unit rents jumped over 25% Inner North and 20%+ Inner South

Interstate migration has fuelled Brisbane’s rental boom. Brisbane is Australia’s #1 internal migration destination. With relatively affordable prices, the city appeals to southerners. Near-city suburbs with transport links are seeing huge demand from investors.

Canberra

• Only 2 suburbs saw increased house rents
• 18 unit markets recorded rent decreases
• Vacancy rate remains over 2%, above normal

Canberra is the only capital where rents have stagnated or fallen. Weaker population growth and loose supply (with rentals well above normal) has dampened conditions. Unaffordability also discourages migration from southern capitals.

Darwin

• Recorded universal rental increases for units
• Houses rose over 15% in Northern Suburbs
• Units soared over 20% in Northern Suburbs

Like Perth, Darwin is benefitting from the resources sector boom. With a small population, migration of mining labour has an outsized impact. Remote location limits affordability pressures compared to southern capitals.

Hobart

• Near-universal rental growth for houses and units
• Houses rose 8-12% across metro suburbs
• Units increased 6-10% in Inner and Eastern Suburbs

Tight rental conditions persist in Hobart despite slowing migration. Years of underbuilding and gentrification has eroded rental supply. Though delayed, a pick-up in construction should eventually improve affordability.

Melbourne

• Universal house rental growth across metro
• 2 minor unit market falls only
• Houses rose 6-10% across Inner and Eastern Suburbs

Melbourne’s rental growth has been surprisingly resilient given weaker population growth. A lack of investors and loss of stock to demolitions has tightened supply. Signs of moderation are emerging but require monitoring.

Perth

• Recorded universal rental increases for houses and units
• Houses soared over 15% across metro area
• Units jumped 15-25% in Central and Inner Suburbs

Perth remains Australia’s tightest rental market. Rents are 41% higher than pre-pandemic after surging through the mining revival. With listings 50% below normal, a persistent shortage continues to push rents higher.

Sydney

• Near universal house and unit rental growth
• Houses rose over 15% in Southwest and Northwest
• Units soared over 25% in Inner Suburbs

Sydney’s rental boom is back after the pandemic lull. The inner suburbs are seeing huge demand from students and migrants. Transport links and lifestyle benefits are driving very strong unit rental growth.

Suburbs With Extreme Rental Increases

Certain individual suburbs across Australia recorded particularly extreme rental growth over 2022-23:

Houses:

• Campsie, Sydney (+29.4%)
• Belfield, Sydney (+27.8%)
• Rockingham, Perth (+25.0%)
• Karratha, WA (+24.8%)
• Alkimos, Perth (+22.9%)

Key themes include proximity to migrant-popular areas in Sydney’s Southwest, Perth’s rising southern corridor, and mining regions like Karratha surging on the sector’s strength.

Units:

• Haymarket, Sydney (+32.6%)
• Kingsford, Sydney (+31.7%)
• Arncliffe, Sydney (+30.9%)
• Travancore, Melbourne (+28.9%)
• Eastlakes, Sydney (+27.9%)

The country’s hottest unit rental markets are clustered in inner Sydney, signalling the concentration of rental demand from students and skilled migrants in accessible, high-amenity precincts.

The Outlook for Rents

Looking ahead, we expect rental growth to continue moderating over the rest of 2023. While key demand drivers like migration remain firm, rising rents are stretching tenant budgets. Plus, tighter purchase affordability may renew investor interest after a pause, replenishing rental stock.

However, rental price inflation still has some way to fall before normalising across most cities. Markets like Sydney and Perth especially remain mired in supply-demand imbalances. Any negative shocks to the economy that hamper construction could easily tighten conditions again.

In summary, Australia’s extraordinary rental boom still retains momentum, although the peak has likely passed. Renters in most cities will need to brace for further increases, just not at the extremes of the past year. Careful monitoring of supply and demand shifts will be key to gauging future movements.

At ValuNation Australia, our team will continue providing in-depth rental market research and insights. Please check back regularly for updates as conditions evolve.

Soaring Property Prices in Australia: An In-Depth Analysis by ValuNation Australia

Australia’s property market has experienced rapid growth in recent years, with house prices in some suburbs rising over 14% in just the past 6 months. As a leading property valuation company in Australia, ValuNation has conducted extensive research into this property boom to provide homeowners, investors and policymakers with data-driven insights.

Key Factors Driving Property Price Growth

Several interconnecting factors are fuelling the uptrend in Australian real estate values:

Surging Demand

Demand for housing continues to substantially outstrip supply. Australia’s population grew at a record pace in 2022 from high immigration and natural increase. Most new arrivals require rental accommodation initially, squeezing vacancy rates to all-time lows of 1.5% nationally. Lack of affordable rentals pushes more Australians into home ownership.

Limited Supply

New housing construction has not kept pace with population growth over the past decade. Land release and development approvals remain sluggish. Meanwhile, labour and material constraints make building more expensive. Constrained supply allows sellers to command higher prices.

Low Interest Rates

Despite recent hikes, interest rates remain near historic lows by long-run standards. Cheap debt has enabled buyers to bid up property prices. With more rate rises anticipated, this driver may ease over 2023. But ongoing strong economic growth will prevent major declines.

Investor Activity

Investors are again seeing residential property as an attractive asset class, given still-low rates and large tax concessions like negative gearing. This demand adds to price pressures, especially for cheaper apartments.

Government Incentives

Schemes like HomeBuilder and the First Home Loan Deposit Scheme increased purchasing power for owner-occupiers. This worsened supply-demand imbalances. Stamp duty reform may have a similar impact.

Impacts on Households

For homeowners, rising values build wealth. But big mortgages leave households exposed to higher interest costs. Potential negative equity also looms if prices correct downwards.

Renters have little respite. With vacancy rates tight, rents increased 11.8% nationally over the past year. Lack of affordable rentals hurts lower-income families most.

Higher prices lock more first home buyers out of the market. Deposit requirements become more onerous. Those who do buy must take on larger loans, risking financial stress.

Property Hotspots

According to ValuNation data, suburbs showing the strongest growth recently include:

• Hurlstone Park, Sydney (+14.4%)
• Fairlight, Sydney (+13.4%)
• Smithfield Plains, Adelaide (+13.1%)
• Kings Langley, Sydney (+13.1%)
• Biggenden, Queensland (+13%)

Premium suburbs near Sydney’s CBD are rebounding after dipping last year. Ongoing demand for affordable housing continues to drive growth in Adelaide. Brisbane’s market also remains strong.

Policy Implications

Rapidly rising housing costs have significant economic and social ramifications. Policy reforms are required to improve affordability and market stability.

ValuNation recommends:

• Increasing land releases for new housing
• Streamlining development approvals
• Reforming stamp duties and other taxes
• Boosting social and affordable housing construction
• Curbing tax incentives that distort investment demand

Careful changes are needed to rein in house price growth to sustainable levels. This will require coordinated action across all levels of government. With thoughtful policies, home ownership can remain accessible for future generations of Australians.

Conclusion

Australia’s property boom has delivered big gains for some households but left many struggling with unaffordable prices or rents. ValuNation’s data and insights help inform smarter policies to deliver more equitable and stable housing market outcomes. Although price growth shows signs of moderating, structural undersupply means housing costs are likely to remain high in the absence of major reform.