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January's National Dwelling Values Show Mixed Trends
by Matrix Capital Management

According to CoreLogic, dwelling values across Australia's combined regional areas rose by an additional 0.4% in January, reaching new record highs.

However, three of the eight capital cities saw a decline in home values for the month, with Melbourne experiencing the sharpest decrease at -0.6%. The ACT followed with a -0.5% drop, while Sydney recorded a -0.4% decline. Hobart's home values remained steady in January.

Brisbane and Perth continued to show growth in home values, though there has been a noticeable slowdown in these markets, particularly in the detached housing sector, where value growth has eased more significantly.

“Perth is now experiencing a slower rate of growth than Brisbane and Adelaide over the rolling quarter,” said CoreLogic’s research director, Tim Lawless. “In the June quarter of 2024, Perth home values grew by 7.1%, but this has slowed to just 1.0% growth in the three months to January.”

Meanwhile, Adelaide has demonstrated a more resilient trend. Although the pace of growth is slowing, it has led the capitals over the past six months with a 4.8% gain.


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Rental growth saw a slight increase in January, rising by 0.4% over the month. This follows a subdued second half of 2024, during which the national rental index rose by only 0.4% from June to December. Every capital city recorded a modest rise in rents over the month, though the trend clearly indicates a continuing slowdown in rental price growth.

On an annual basis, Australian rents have increased by 4.4%, more than double the pre-COVID decade average of 2.0% annual growth. However, with rental growth slowing more visibly in the latter half of last year, the annual change in rents is expected to fall to below-average levels in the first half of 2025.

The six-month trend in rental growth has turned negative in the two largest markets, Sydney and Melbourne, with rents falling by 0.4% and 0.6%, respectively, with larger declines seen in the unit sector. The remaining state capitals have also recorded a clear slowdown in rental growth, as net overseas migration and larger households contribute to easing rental demand.

“Finally, renters are seeing some relief after a period of extreme rental growth,” said Mr. Lawless. “Over the past five years, capital city rents have surged by 37%. The previous five-year period saw rents rise by just 5%.”


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Investments:
Matrix Capital Management, an Australian Financial Services License holder, offers alternative investment opportunities backed by mortgage securities over both residential and commercial properties. We provide tailored investment solutions that suit your needs, whether through pooled investments or individual deals.


Investment Opportunity Details:

Target Return: From 10% per annum, net of all fees, payable monthly, quarterly, or annually depending on the investment terms.

Investment Strategy: The fund aims to generate returns through investments in:

  • Mortgages held by the Trust until maturity
  • Mortgages funded for distribution to other channels
  • Mortgages as alternative investment opportunities
  • Units in other trusts with exposure to underlying mortgage assets

Lending:
Matrix Capital Management provides easy lending to residential, commercial, land banking & property developments. Unlike most lenders, we do not take employment history, income or credit history into considerations. Our assessment is based on the securities and exit strategies at the end of the loan terms. We will lend to most purposes with no control over the funds after settlement.


Loan Amount: $1,000,000 to $10,000,000

Interest Rate: Starting at 9.50%

Loan-to-Value Ratio (LVR): Up to 80% (first and second mortgages)

Loan Term: 6 months to 25 months

Property Types: Residential, commercial, and rural real estate

We will lend to most purposes with no control over the funds after settlement.


Purposes can be and not limited to;

ATO debts

Unlimited debt consolidations

Marriage separation payments

Business cashflow

Purchasing new business

Home improvements, developments or subdivisions

Funds for council’s DA or BA applications


Time Frame: 48 hours approval & 48 hours settlement upon certification of signed loan agreements and mortgage documents.


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Disclaimer:
This information has been prepared by Matrix Capital Management Corporation Pty Ltd (ABN 46 623 341 579) (AFSL 521767). It is general information only and is not intended to provide you with financial advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) prior to making any investment decisions.