Real Estate

Trends and updates on property markets, including residential and commercial sectors.

Real Estate
Australian home values hit new high in March: CoreLogic
Australian property values reached new national record highs in March, recovering from a slump at the end of 2024. Values rose by 0.4% nationally last month, according to a report by CoreLogic, and increased in every capital city except Hobart. This is the second consecutive month of growth, following an increase of 0.3% in February. “Improved sentiment following the February rate cut is likely the biggest driver of the turnaround in values, along with the cut’s direct influence of a slight improvement in borrowing capacity and mortgage serviceability,” said CoreLogic research director Tim Lawless. “With the rate-cutting cycle expected to be drawn out, it will be interesting to see if this positive inflection in values can last in the face of affordability constraints.” Before February, national property values had fallen by 0.4% over the previous three months. Sydney’s median property value in March was the highest at A$1.19 million, and rose by 0.3%. This is 1.4% below its all-time high, reversing a decline of 2.2% between September and January. Darwin’s median value was the lowest at $519,287, but also saw the largest monthly growth rate at 1%. Brisbane and Adelaide’s median values reached new peaks in March,
Real Estate
APRA queries Coalition plan to relax home lending rules
Contrary to the financial regulator’s advice, the Coalition promises to relax home lending rules if it wins government. Having concluded that it is an antiquated regulation, Shadow Housing Minister Michael Sukkar says that the Coalition plans to abolish the serviceability criteria. This precludes around 40% of first-home buyers from receiving a home loan. While major banks and property groups back the Coalition’s plan, APRA is not for more relaxed lending rules. The regulator has counselled against removing what is effectively a serviceability buffer. This is when banks weigh up whether someone applying for a home loan can repay it. As a rate is set above the loan interest rate, the serviceability buffer was raised from 2.5% to 3% during COVID, when the official cash rate was at an all-time low of 0.1%. Sukkar argues that the serviceability buffer, now out of whack with elevated interest rates, has by default blocked many Australians from receiving home loans. “The one-size-fits-all rule for assessing serviceability is stopping tens of thousands of Australians from getting a home loan even when they can meet repayments with a prudent margin against unexpected future rate rises,” said Sukkar. The Coalition is
Real Estate
Domain agrees to CoStar's non-binding exclusivity deed
Domain Holdings Australia (ASX: DHG) has announced an exclusivity deed with the United States-based commercial real estate information provider, CoStar. The deal is in relation to CoStar's proposal to acquire 100% of the issued capital of Domain, for a cash consideration of $4.43 per Domain Share. This was announced to the ASX on Thursday of last week. As required by CoStar as a condition of their proposal, Domain has confirmed that its directors will recommend shareholders vote in favour of the proposed arrangement as the best course of action, subject to an independent expert conclusion, “in the absence of a superior proposal”. Domain also confirmed in today's announcement that CoStar will be granted access to a virtual data room, helping to provide information. The proposal is non-binding, and shareholders do not need to take any action in relation to the CoStar Proposal at this time. Domain is being advised by UBS Securities Australia Limited and Gilbert + Tobin. Domain Holdings Australia Ltd's share price at the time of writing was $4.26, with a market cap of around $2.69 billion. Related contentAzzet’s insights into potential ASX takeover targets US property giant in $2.7bn bid for Domain Holdings T
Real Estate
Preliminary clearance rate lowest since Feb: CoreLogic
Australia's auction market displayed signs of cooling last week, with a preliminary clearance rate of 68.7% across the combined capitals, according to CoreLogic data. This marks a slight dip from the previous week's 69.1% rate and reflects the lowest preliminary clearance rate since February 2025. A total of 2,435 homes were auctioned, slightly fewer than the 2,472 homes auctioned a week prior. This is well below last year's pre-Easter spike of 3,519 homes.Credit: CoreLogicMelbourne showed resilience as the largest auction market, hosting 1,249 auctions, up from 1,192 the previous week. The city's preliminary clearance rate edged higher to 70.6%, while Sydney experienced a decline. This was due to 837 homes going under the hammer compared to 893 the week before. Sydney's clearance rate dropped below the 70% threshold to 69.1%, breaking its six-week streak of high results and signalling potential headwinds for the market. Brisbane recorded the strongest performance among the smaller capitals, with a preliminary clearance rate of 61.5%, its highest so far this year. Adelaide reported a preliminary rate of 60.8%, its weakest showing year-to-date, while the ACT saw improvement, climbing to 60.8% from the previous wee
Real Estate
Australia's first-home buyers urged to act now
First-home buyers in Australia are being encouraged to buy sooner rather than later due to current friendly market conditions. The Reserve Bank of Australia’s anticipated interest rate cut to 4.1% last month, home buyer confidence has risen across all states, according to the PRD Australian Economic and Property Update. PRD chief economist, Dr Diaswati Mardiasmo said the rate cuts could create a frenzy in the market, benefiting home buyers, businesses and investors. “Home buyers will have access to a slightly higher borrowing amount, which will assist with competing in an undersupplied market,” Dr Mardiasmo said. The highest rates of growth on the time to buy a dwelling index are in Victoria (43%) and in South Australia (32.8%). Housing prices also moderated more than expected in the December quarter, especially in Melbourne and Sydney. Despite this, Brisbane, Perth, Adelaide and some regional areas continued to see price growth. According to the PRD Australian Economic and Property Update, while there has been a 1.3% decrease in the number of homebuyers, they are most active in the Northern Territory, South Australia and Queensland. While cost-of-living continues to be an issue plaguing Australi

Real Estate
China’s real estate crisis: Can the market stabilise?
China’s real estate sector, a vital pillar of the economy, continues to face mounting challenges as it enters its fifth year of crisis in 2025. Major developers are struggling with rising debt, liquidation petitions, and plunging stock prices, despite ongoing government efforts to stabilise the market. A Brief HistoryThe Chinese property sector crisis began in 2021 with Evergrande Group's default, following years of overbuilding and tight government corporate debt regulations. The crisis quickly spread to major developers, including Country Garden, Kaisa Group, and Sunac, as a deepening contagion of financial instability spread throughout the sector. Evergrande’s troubles escalated after a leaked letter in August 2021 revealed its liquidity concerns. As investor confidence collapsed, its stock price plunged, affecting global markets and reducing foreign investment in China. Attempts to sell assets failed, and the company missed multiple debt payments before defaulting on an offshore bond in December 2021. International ratings agencies, including Fitch, subsequently classified Evergrande as in "restricted default," marking a turning point in China's property downturn.Credit: TradingViewChina’s Real Estate Crisis Deepens as
Real Estate
New investment in Europe by the Norges Bank fund
Norges Bank Investment Management (NBIM) has announced a €240 million (A$413 million) investment for a 40% stake in AXA Lifestyle Housing, a platform managing student housing and co-living properties in France and Spain under The Boost Society brand. The deal, signed on 19 March, values the platform at €1.3 billion, with €600 million in debt. Completion is expected in Q1 2025, pending seller approval after a works council consultation. This strategic move aligns with NBIM’s focus on diversifying its real estate portfolio. “This acquisition underscores our commitment to investing in high-quality assets in resilient sectors,” said a spokesperson for NBIM. The portfolio includes 42 properties with approximately 12,200 beds, catering to the growing demand for student and co-living accommodations in Europe. AXA IM Alts, through its European Student Accommodation Venture S.C.A., will retain a 60% stake and continue managing the portfolio. “We are thrilled to partner with NBIM to further enhance the value of these assets,” said an AXA IM Alts representative. The collaboration aims to leverage AXA’s operational expertise and NBIM’s financial strength to optimise returns. The investment comes amid a broader recovery in Europ
Real Estate
Property earnings help Brickworks rebuild profits
Brickworks has announced a 141% surge in statutory net profit after tax (NPAT) including significant items to A$21 million (US$13.2 million) in the first half of the 2025 financial year (H1 FY25). The 81-year-old building products maker said this compared with a $52 million loss in the previous corresponding period (pcp) ending January 2024, which was significantly affected by property revaluations. Brickworks, which is 43% owned by 122-year-old industry investment company Washington H. Soul Pattinson and Company (ASX: SOL), said underlying NPAT before significant items soared 308% to $76 million from a $37 million loss. Directors declared a fully franked interim dividend of 25 cents per share, compared with 24 cents a year earlier, to be paid on 1 May to shareholders registered on 9 April. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations was $148 million in the first half, compared to a loss of $40 million in the pcp. Building Products underlying EBITDA was 4% lower in Australia at $50 million and 115% down in North America to a $3 million loss, due to challenging market conditions, while property EBITDA rose 121% to $38 million and investments E
Real Estate
Aussies move to regions, internal migration drops: report
Australians are increasingly moving to regional areas, though internal migration has begun to slow. Around 32% more Australians moved from large cities to regional areas than the reverse in the December quarter, according to a report by Commonwealth Bank and the Regional Australia Institute. Total internal migration fell by almost 12%, however, in a seasonal slowdown at the end of 2024. “ Regional Australia is the new frontier, and people are enthusiastic about the career opportunities and lifestyle benefits it offers,” said Regional Australia Institute CEO Liz Ritchie.  “The emergence of new mover hotspots further out shows this increase of population into Australia’s regions is not isolated to a couple of places, rather that it’s happening all over the country. It’s why we must ensure communities have the infrastructure, funding and support they need to ensure they can continue to welcome new residents.”   Migration from capitals to regions represented 11.4% of internal migration, rising by 0.1% from the previous quarter. The local government areas reporting the largest share of inbound internal migration were Queensland’s Sunshine Coast and Victoria’s Greater Geelong. Migration from capitals significantly outpace