🦘 Aussie Housing Market Is Waking Up

G’day everyone!

Here’s what we’ve got in store for you today:

• Bad News For People Looking To Buy Their First Homes

• Interesting Trends In CBD Office Vacancies

• New Medicare Boost Helping Vulnerable Aussies With Cost Of Living

Let’s have a look at the market snapshot before jumping into the news:

Australia's Housing Market Steps Up in 2024

Kicking off 2024, Australia's housing market has found its rhythm, with property values inching up by 0.4% in January. 

Renters, on the other hand, are facing the music with a 0.8% rise in rents – the most significant jump since last April, striking a chord of concern for many.

According to CoreLogic's latest report, this marks the 12th consecutive month of rising property values, albeit with the market dancing to a varied tune across different regions.

Melbourne, Hobart, and Canberra saw a slight dip, whereas Perth, Adelaide, and Brisbane enjoyed a more upbeat tempo, with values increasing by 1% or more.

Perth shone brightly, leading the capital cities with a 1.6% increase in January, amassing a notable 16.7% growth over the past year.

Despite its stellar performance, Perth's housing remains comparatively affordable, with the median dwelling value comfortably under $677,000.

The gap between the prices of houses and units has stretched further, now at a record 45.2%, underscoring a growing preference for detached homes.

Regional markets are showcasing stronger value growth than their capital city counterparts, particularly in Western Australia, South Australia, and Queensland.

These areas are experiencing a crescendo of growth, reaching new heights.

Home sales have managed to keep pace, slightly above the average over the past three months, indicating a resilient market despite affordability challenges.

Perth continues to lead, not just in property values but in rental growth too, particularly for units.

As we move through the year, the typical increase in rents between January and March is expected to play out again, adding pressure on renters.

The ongoing upswing in Australia's property market in 2024 demonstrates a lively and complex landscape, where various factors contribute to the overall market performance.

Australian CBD Office Spaces: A Mixed Bag of Vacancy Rates

The latest scoop from the Property Council of Australia reveals a nuanced picture of the CBD office market.

Overall, the national vacancy rate for CBD office properties has taken a slight uptick, moving from 12.8% to 13.5% in the last six months.

However, not all cities are moving in lockstep; Perth notably bucks the trend with a decrease in vacancy rates.

While prime office spaces hold a vacancy rate of 12.9%, their older, secondary market counterparts are feeling a bit more deserted at 14.5%.

This split hints at a broader trend: businesses are gravitating towards newer, high-grade offices, leaving older buildings to contend with higher vacancies.

Adelaide, Melbourne, and Sydney have witnessed the most significant leaps in vacancy rates, with Adelaide jumping to 19.3%, Melbourne to 16.4%, and Sydney to 12.2%.

On the flip side, cities like Brisbane, Canberra, and Darwin saw only minimal increases, with Hobart maintaining the lowest vacancy level at a mere 2.8%.

Perth emerges as the standout, showing resilience with its vacancy rate dropping from 15.9% to 14.9%. This trend speaks volumes about the strength of local economies and the market dynamics within each city.

The overarching narrative?

A flight to quality. Businesses are opting for newer, premium office spaces, driving a wedge between the demand for prime versus secondary office stock.

As the CBD office market continues to adjust, the significance of these business hubs remains undisputed.

The Property Council’s chief executive, Mike Zorbas, stresses the importance of face-to-face interactions and the vibrant ecosystems of small businesses that CBDs nurture.

With the ongoing shift towards flexible working, the role of CBDs in fostering professional and social connections is increasingly being recognized.

Aussies Reap $15M in Bulk-Bill Savings Under New Medicare Boost

Australians have clinched an estimated $15 million in savings on doctor's visits, thanks to a hefty expansion of Medicare's bulk-billing incentives.

This "game changing" initiative, part of a $3.5 billion government program launched in November, has seen bulk-billing rates surge by 2.1%, translating to 360,000 more appointments without the extra out-of-pocket costs.

This move particularly benefits around 11.6 million vulnerable Australians, including children under 16, pensioners, and concession cardholders, by tripling the compensation to doctors who forgo the 'gap fees.'

Health Minister Mark Butler hailed the early results as a significant step towards making healthcare more accessible, especially in rural and regional areas.

The initiative couldn't come at a better time, with bulk-billing rates previously slipping to a decade-low of 80.2%. This decline sparked concerns about people delaying essential healthcare due to financial strains.

Indeed, a Productivity Commission report highlighted a worrying trend: the proportion of Australians skipping GP visits due to cost concerns has doubled from 7% in the previous year to 14% in 2023.

Tasmania led the charge with the highest increase in bulk-billing rates (5.7%), followed closely by South Australia, Western Australia, and Queensland.

Despite New South Wales boasting the highest number of clinics offering bulk billing, the region saw a significant jump in people deferring doctor visits due to costs.

Under the revamped incentives, GPs now receive between $20.65 and $39.65 for standard consultations, depending on their location—a substantial leap from the previous rates. 

Additionally, the government has taken steps to address the rising operational costs for doctors, with the standard GP consultation fee rising to $102, alongside a minor increase in the Medicare rebate.

The MyMedicare program also rolled out enhancements, including extended telehealth services under the Medicare Benefits Scheme for registered patients, aiming to ensure continuity of care.

Moreover, the government is proposing to raise the low-income threshold for the 2% Medicare levy, potentially offering up to $172 in savings for eligible Australians. 

This year also sees the rollout of a commemorative Medicare card, adding a fresh look to the scheme as it continues to evolve and adapt to the changing healthcare needs of Australians.

Unveiling The Business Academy: Janine Allis & Matt Purcell's Masterstroke

In an inspiring collaboration, Janine Allis, Shark Tank judge and the entrepreneurial force behind Boost Juice, and Matt Purcell, the branding maestro of KYU Media, have unveiled The Business Academy. 

This innovative venture springs from a shared vision to empower business owners amid startling statistics revealing that a significant portion of small businesses are struggling to turn a profit.

The Business Academy is set to offer a transformative four-day course, meticulously crafted to blend practical wisdom with the gritty realities of business growth.

It's a dream solution that Allis wishes was around when she was blending her first Boost Juice from her kitchen, amidst the whirlwind of raising three kids and betting everything on what would become a global sensation.

Reflecting on her journey, Allis shares, "Business is simple, we just tend to overcomplicate it." This philosophy underpins The Business Academy's curriculum, promising a no-nonsense, experience-driven approach to business education.

Purcell, whose journey with KYU Media has seen him collaborate with some of Australia's business luminaries, brings a wealth of knowledge and insight to the table.

Having navigated the twists and turns of entrepreneurship himself, Purcell understands the value of clear, actionable guidance. "It's not the resources you lack, but knowing the next steps to take," he asserts, emphasizing the critical role of mentorship in business success.

The Business Academy emerges not just as an educational program but as a beacon for those navigating the often turbulent waters of entrepreneurship.

With Allis's firsthand experience and Purcell's strategic prowess, participants are in for an unparalleled learning experience that promises to demystify business success and inspire actionable change.

That’s All!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

Keep an eye out for tomorrow's newsletter. Until then, have an awesome day folks!