Page 1 - Wealth Adviser Newsletter March 2025
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ISSUE 107                                                                                    MARCH 2025




























              AUSTRALIAN HOME PRICES


                 TURNING BACK UP AGAIN



                                                      BY DR SHANE OLIVER                                              Depositphotos.com
                                                     Reprinted from amp.com.au


                                                                      KEY POINTS
        INSIDE                         •   CoreLogic data shows average home prices rose 0.3% in February, after a brief three-month
                                          downturn of just 0.4%.
                                       •   The upswing came in anticipation of, and then confirmation of, an RBA rate cut which boosted
        1   Australian home prices turning   buyer confidence.
           back up again
                                       •   Annual growth in rents slowed to 4.1%yoy, the slowest since 2021. Poor rental affordability
        5   The Evolution of Retirement   leading to rising average household sizes and easing student arrivals are weighing on demand
           Planning: How New Super Rules   for rental property.
           and Investment Strategies Are   •   Australia continues to have a chronic shortage of homes, estimated to be around 200,000 dwell-
           Reshaping Financial Futures    ings and possibly as high as 300,000. This partly explains the resilience of home prices despite
                                          the rise in mortgage rates since May 2022.
        8   Seizing Opportunities: How
           Advisers Can Guide Clients   •   RBA rate cuts are expected to drive a modest upswing in average prices this year. However,
           Through the 2025 Australian    while there is still a big housing shortfall in Australia, the upswing will be starting from a point
           Commercial Property            of still poor affordability, interest rates are only likely to fall modestly, and population growth is
           Landscape                      slowing.
                                       •   After 4.9% growth last year, we expect average property prices to rise around 3% this year.
        11  Q&A: Ask a Question

         BEFORE YOU GET STARTED
            This Wealth Adviser publication is published by Wealth Today Pty Ltd   Information in this document is no substitute for professional financial
         (AFSL 340289), Sentry Advice Pty Ltd (AFSL 227748), Synchron Advice   advice.
         Pty Ltd (AFSL 243313) and Millennium3 Financial Services Pty Ltd (AFSL   We encourage you to seek professional financial advice before making any
         244252) and contains general and factual information only.  investment or financial decisions.
           Before acting on any information contained herein you should consider if   In any circumstance, before investing in any financial product you should
         it is suitable for you. You should also consider consulting a suitably qualified   obtain and read a Product Disclosure Statement and consider whether it is
         financial, tax and/or legal adviser.                   appropriate for your objectives, situation and needs.
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