Market Update
Sydney & Perth house prices to rise by 20 per cent
RESIDENTIAL real estate has created more millionaires in Australia than any other form of investment but there may be bigger money to be made over the next decade.
Residential property has eclipsed shares as Australia’s highest-returning asset class over the past 24 years, but over the next decade it will be outperformed by commercial property, according to research by ANZ.
ANZ forecasts that equities will become the strongest performer over the next 10 years, but suggests that when risk is factored in commercial property will also generate similar returns.
Commercial property covers a range of options from office and retail space through to car parks and industrial properties like warehouses and factories.
The report, Asset returns: Past, Present and Future, said owner-occupied housing had made annual average returns of 12 per cent over the 24 years since 1987 even when costs and taxes were factored in.
Simple historical comparisons of equities and property are often used by property analysts to demonstrate housing’s superior capital returns but ANZ included costs, taxes, interest on loans and factored in the risk associated with investing, the SMH reports.
It found that owner-occupied housing had the highest returns in part because of capital gains tax exemptions. Investor housing was the next best asset class, performing slightly better than equities over the time analysed, the report said. They were followed by government bonds, term deposits and commercial property.
But the bank’s analysis of future asset-class returns suggested equities would be the strongest performer over the next 10 years.
Commercial property also shows strong returns, sitting between equities and owner-occupied housing,” the report said. Risk-adjusted forecasts show that equities and commercial property will have similar returns.
However, considering the housing shortage, it is likely there will be many Australians who will make their fortunes out of residential property within the next decade. New data points to house prices rising by up to 20 per cent in some capital cities within the next two years.
Economists are predicting a double-edge sword for Sydney’s property market, forecasting the median price to boom from $644,000 to $770,000 in the next three years – on the back of the housing crisis.
The report, prepared by BIS Shrapnel, says the underlying strength of the Australian economy, stable interest rates in the short term, high immigration and a dire shortage of houses in Sydney, will be the main drivers of this growth. It forecasts the Sydney median house will lift by 19 per cent to $770,000 over the three years to June 2014.
The rise in home prices and shortage of accommodation is also expected to force up rents. This compares with 20 per cent in Perth, 16 per cent in Brisbane, 8 per cent in Canberra and only 6 per cent in Melbourne. It also predicts that first home buyers will start to re-enter the market in greater numbers next year as the outlook for the economy improves. This will in turn encourage others to return, especially upgraders, as demand for their properties improves.
”Sydney hasn’t fallen in a hole and house price growth has been minimal but has held up over the last 12 months,” said Robert Mellor, the managing director of BIS Shrapnel.
But he predicts this will jump to about 5 per cent in 2011-12 and 7 per cent the year after, before growth will start to slow as a result of higher interest rates in 2013.
”At some point in the next few years rising interest rates will become a concern and that will bring a slowing in residential property markets,” Mr Mellor said.
BIS Shrapnel chief economist Frank Gelber warned the Melbourne market was “running out of steam” as supply levels for new homes increased to satisfy demand.
Would-be house buyers would be deterred by a likely 100-basis point increase in interest rates over the next few years. Such a rise would take the official rate to 5.75 per cent.
“The property market will stay stronger over the next few years but there will be no huge increase in (residential) property prices over the next five years in Melbourne,” Mr Gelber said, speaking in Melbourne.
“The next big increase in Melbourne property prices won’t be until the next upward phase of the economy.”
Separately yesterday, the number of home loans approved in August rose 1.2 per cent to 50,965 from an upwardly revised 50,363 in July, official figures show.
Economists’ forecasts had centred on a one per cent rise in housing finance commitments for the month.
The Australian Bureau of Statistics (ABS) said total housing finance by value rose 1.0 per cent in August, seasonally adjusted, to $20.848 billion.
Source : Money Matters. News.com.au, 12 October 2010
Dollar to slip below parity ‘within days’
Online shoppers and overseas travellers are watching with dismay as the Aussie dollar slides back towards parity with the greenback amid predictions that the local unit will sink below $US1 within days – and stay there.
Since climbing almost to $US1.11 in late July, the dollar has weakened as the European debt crisis rattled global markets and the Reserve Bank of Australia has softened its tone on the need to push interest rates higher.
The Aussie dollar caught the latest down-draught earlier today, dropping its lowest level in more than five weeks when US ratings agency surprised investors by cutting its debt rating for Italy. That announcement saw the dollar dip to as low as $1.014 before bouncing higher.
Part of the currency’s recovery was courtesy of the RBA. The release of the minutes from its September meeting – when it left its key cash rate on hold for a ninth straight meeting - were interpreted by traders to mean a rate cut is not imminent.
That view pushed the dollar back above the $US1.02 mark, but Westpac chief currency strategist Robert Rennie said the rebound may be temporary with little news on the horizon that would keep the dollar from slipping back to parity.
“Europe is heading towards a recession; [the] US economy is heading towards a double-dip recession and Asia is slowing. That makes the Australian dollar less attractive,” said Mr Rennie. “We will continue this slide back towards parity.”
A drop in the dollar, of course, will be cheered on by companies trying to export, including those dependent on foreign tourists or students. Still, the relatively strong Australian dollar has helped keep a lid on inflation through cheaper imports – without which, the RBA may well have lifted official interest rates even higher than they are now.
And of course, market analysts change their view on the outlook for the dollar and other assets almost by the minute. Just a couple of months ago, some commentators were tipping the dollar would go to as high as $US1.20 as the US deliberately drives down the value of its currency in a bid to help spark faster growth.
Mr Rennie, though, thinks the Aussie dollar is pointed very much in the other direction, and may drop as low as 95-97 US cents by June next year if not sooner.
“As we move into October, November and December we’re going to see the low moving to the 95 US cent level with $US1.01 to $US1.02 upper end of the very volatile swings we’re seeing at the moment.”
One of the biggest drags on the dollar has been the diminishing chance of an interest rate rise. Speculation is swirling that the Reserve Bank will cut rates to spur a slowing economy in which confidence – both for businesses and consumers – is fragile.
The market gives a rate cut a 60 per cent chance when the RBA meets next month, down from 90 per cent just before the release of the RBA minutes.
More to the point, though, investors remain certain that the cash rate will be well below the current 4.75 per cent level in a year’s time, pricing in the equivalent of six rate cuts by then to 3.25 per cent, according to Credit Suisse data. So long as the market’s take such a dim view on rates, the Australian dollar will struggle to regain its earlier appeal.
Source : Chris Zappone, The Age Newspaper, 20 September 2011
NSW Stamp duty date causes a stampede in auction clearance rates $140.5 million worth of properties moved
THE state government’s move to force first home buyers to pay stamp duty has sent auction clearance rates soaring – moving $140.5 million of Sydney property in one day after months in the doldrums.
The first auction weekend after the NSW Treasurer’s announcement that first home buyers would cop stamp duty on existing homes after January 1 has caused a rush of buyers to get in quick. Sydney auction clearance rates leapt to 60 per cent at the weekend after remaining below 50 per cent for the past eight weeks.
Australian Property Monitors senior economist Dr Andrew Wilson said the stamp duty revelations and 10 months of stable interest rate policy as well as the beginning of spring had given Sydney its highest auction clearance rate in two months.
“With their concessions ending, those first home buyers looking for established units or houses may feel like now is the time,” Dr Wilson said.
“That concession can be up to $18,000 and they will lose that at the end of this year – that is an inducement to have a look at what is around at the moment.”
Dr Wilson said prices would rise at the affordable end of the market if first home buyers did rush into the market.
Listings are also on the rise with a bumper weekend at the end of September and sellers buoyed with new confidence as buyers emerge. “We do have reasonably high levels of stock at the moment,” Dr Wilson said.
“Buyers have been sitting on the sidelines over winter and it has been a quiet market over the year. Sellers have waited for a bit more competition for their properties.”
Real Estate Institute of NSW president Wayne Stewart said agents were expecting a new generation of property hunters who are keen to escape being slogged an extra $17,990 in stamp duty.
“We feel there is going to be a lot of first home buyers getting out there,” he said. “We have a positive and a stable 12 months ahead. We will see a rush on properties in the lower quartile, prices will inflate and we’ll see a hangover period after that.”
Ray White Concord principal Joel Hollis said he had seen a boost in inquiries for homes priced between $300,000 and $500,000.
“The stamp duty will be a hit of $15,000 – that’s a lot of money for anyone these days,” he said. “People who haven’t bought or can’t buy by this time have no choice to go back on the rental market. People that don’t buy before January will see rent increase.”
Richard Matthews Real Estate director Matthew Everingham said strong sales results in Sydney had convinced vendors the market would hold its ground.
“I think there is also now an element of sellers thinking about the effect the reduced stamp duty rates may have early next year,” he said.
Source : Vikki Campion, The Daily Telegraph, 12 September 2011
Rates unlikely to change while global uncertainty remains: RBA’s Glenn Stevens
The Reserve Bank is unlikely to change interest rates while anxiety and uncertainty remains in global financial markets, RBA governor Glenn Stevens has suggested.
Stevens expects that global anxieties are not only having an impact on consumer spending behaviour but could help ease current inflationary pressures.
In a speech made today in Perth titled “Still Interesting Times”, he also stressed that people should not jump to conclusions about the current sovereign debt issues in Europe being comparable with the 2008 GFC.
Stevens says during periods of “sudden increases in anxiety within international financial markets are moments when, if at all possible, it is good to be in a position to be able to maintain steady settings”.
“In the recent few meetings, the board has judged it prudent to sit still, even though we saw data on prices that were, on their face, concerning. To be in that position of course requires timely decisions to have been made in earlier periods.”
Looking ahead at future cash rate decision, Stevens says the task for the board would be to assess what bearing recent information and international and local events will have on the medium-term outlook for demand and inflation.
Stevens says the current environment presents “no shortage of challenges” though he stresses that it should not be assumed that it is necessarily the GFC crisis of 2008 all over again.
“It is reasonable to conclude, at this point, that the outlook for global growth is not as strong as it looked three months ago. Forecasters are generally revising down global growth estimates for 2011 and 2012, mainly as a result of weaker outcomes for the major countries,” he says.
Inflation remains a concern, with Stevens highlighting that while growth seems to be weaker than expected at the end of last year, underlying inflation seems to be higher.
“A key question is whether that is just the vagaries of statistical noise and lags, or whether it is telling us that the combinations of growth and inflation available to us in the short term are less attractive than they seemed a few years ago. If the latter, the spotlight will come back on to supply-side issues.”
Stevens addresses the question of its inflation targets, which have guided the bank in the past on adjusting inflation rates in less globally volatile times.
“Sometimes people ask whether a higher target for inflation might not be better, particularly when inflation is looking like it will rise and the bank is running a setting of monetary policy designed to resist that.
“The answer ultimately hinges on how prepared we would be to accept the things that would go with higher inflation. Higher average interest rates would be among them – there is no reason that savers, any more than wage earners, would be prepared simply to accept an erosion of their financial position.”
Furthermore, he says whatever structural challenges the economy faces will still have to be faced at higher inflation rates.
“Higher inflation wouldn’t make those issues go away, nor make them any easier to cope with (as we know from our own history when inflation was high and structural change still had to occur). We would simply waste more real resources as everyone sought to protect themselves from the higher inflation.”
Stevens points out that credit growth has slowed a bit further and asset prices have tended to decline.
“These factors, along with ongoing evidence that underlying inflation had turned up, were incorporated in the bank’s outlook as published early last month,” he says.
Explaining the 2% to 3% inflation target setting, Stevens says the bank has “a fair bit of history now” dating back to the early 1990s and he acknowledges the work of former RBA governor Ian Macfarlane in determining the current monetary policy framework.
“We arrived at this framework after a long search – the ‘search for stability’ set out in detail by Ian Macfarlane in his ABC Boyer Lectures in 2006,” Stevens says.
At a time when statements made by the RBA are being heavily scrutinised (theAustralian Financial Review runs line-by-line analysis in its editions), Stevens acknowledges this scrutiny and details the research the bank puts into place in putting its monetary policy framework into place.
“The bank carries out a great deal of detailed statistical work, tracking several thousand individual data series. It conducts extensive liaison with businesses and other organisations, usually speaking in detail to as many as 100 contacts each month. It produces voluminous published analysis of these data,” he says.
Stevens stresses the unprecedented set of complex forces facing the Australian economy.
“There is an epochal change occurring, and Australians are also feeling that. It is overwhelmingly positive for us in net terms, even if our tendency to dwell on the downside is more prominently on display at present.
“The future is uncertain.”
Deadline set for first home buyers stamp duty concessions
THE state government has set an end-of-year deadline on its stamp duty concessions for first home buyers wanting to buy established homes.
First-home buyers currently pay no stamp duty on properties under $500,000 and receive a discount for properties valued up to $600,000.
From January 1, the stamp duty savings will apply only to new homes, including ones bought off the plan.
First-home buyers of established homes will have to pay full stamp duty from that date, which amounts to $17,990 for a $500,000 home and $22,490 for one worth $600,000.
Agents criticised the decision. ”This is not going to help young people jump off the rental market treadmill and into their own homes,” the chief executive of Raine & Horne, Angus Raine, said.
”I’d really urge the NSW government to reconsider this budget measure as it will mean first timers will need to find tens of thousands of additional dollars to buy into the housing dream.”
The chairman of Ray White, Brian White, was also critical. ”It’s our belief that the impost of stamp duty is significant,” he said.
”To take away this benefit to the second-hand home structure in order to just help new home buyers is a bit artificial … we don’t see that as quality thinking.”
Yesterday’s budget announcement coincided with the release of figures from the Bureau of Statistics showing that the proportion of first-home buyers taking out home loans in NSW was the lowest for 6½ years.
The senior economist at the Fairfax-owned Australian Property Monitors, Andrew Wilson, said the end-of-year deadline could motivate first-time buyers this spring.
”It’s like the [first-home buyer] boost all over again,” he said.
”First home buyers may go nuts over the next four months because they’re only going to have that $18,000 saving for a limited time.”
But the development lobby welcomed the decision to focus stamp duty incentives.
”By tying stamp duty concessions exclusively to new housing, the inflationary impact on existing housing will be removed and brand new homes will be more attractive to home buyers,” the chief executive of the Urban Taskforce, Aaron Gadiel, said.
To complement the plan, the government-owned developer, Landcom, will release 10,000 lots for housing over the next four years in the north-west and south-west of Sydney. The government had already committed to releasing 8000 new lots, so this is effectively a 2000-lot jump.
RBA leaves rates unchanged – 6 September 2011
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
Conditions in global financial markets have been very unsettled over recent weeks, as participants have confronted uncertainty about both the resolution of sovereign debt problems and the prospects for economic growth in Europe and the United States. As a result, the outlook for the global economy is less clear than it was earlier in the year. Some temporary impediments that had contributed to a slowing in growth in some countries over recent months, such as the supply-chain disruptions from the Japanese earthquake and the dampening effects of rising commodity prices, are lessening. But the uncertainty and financial volatility is reducing confidence and may result in more cautious behaviour by firms and households in major countries. A number of forecasters have scaled back their global growth estimates over the past couple of months.
At this stage, little evidence is available to gauge any effects of the European and US problems on other regions. Prices for key Australian commodities have remained very high thus far, with growth in China continuing to look solid. As a result, Australia’s terms of trade are now at very high levels and national income has been growing strongly. Investment in the resources sector is picking up very strongly and some related service sectors are enjoying better than average conditions. In other sectors, cautious behaviour by households and the high level of the exchange rate are having a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended. Overall, the near-term growth outlook continues to look somewhat weaker than was expected a few months ago. Beyond the near term, growth is still likely to be at trend or higher, unless the world economic outlook continues to deteriorate.
Growth in employment has been moderate this year and the unemployment rate has been little changed, near 5 per cent, for some time now. Reports of skills shortages remain confined to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn, though productivity growth has been weak.
Year-ended CPI inflation should start to decline towards the end of the year, as temporary weather-related effects reverse. But measures of underlying inflation have been increasing this year, after declining for the previous two years. While they have, to date, remained consistent with the 2–3 per cent target on a year-ended basis, the Board remains concerned about the medium-term outlook for inflation. A key question will be the extent to which softer global and domestic growth will work, in due course, to contain inflation.
Most financial indicators suggest that monetary policy has been exerting a degree of restraint. Credit growth has declined over recent months and is very subdued by historical standards, even with evidence of greater willingness to lend. Most asset prices, including housing prices, have also softened. The exchange rate is high. Each of these variables is affected by other factors as well, but together they point to financial conditions being tighter than normal.
At today’s meeting, the Board judged that it was prudent to maintain the current stance of monetary policy. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.
Auction buyer ordered to pay $350,000 shortfall after failing to settle
A property investor who terminated a contract to buy a Sydney Northern Beaches property after successfully bidding for it at auction has been ordered to pay the vendor almost half a million dollars in compensation and costs.
The compensation covers the shortfall between the original December 2009 winning bid of $2.3 million and the subsequent sale in February 2010 for $1.95 million: $350,000 plus interest and $50,000 in legal costs.
The case dates back to December 12, 2009, when David Anthony Burnet and Pamela Jane Clancy sold their $2.3 million home at Edgecliff Boulevard, Collaroy Plateau, to defendant Lily Maria Gubbay at auction.
Gubbay signed a contract for the two-bedroom house overlooking the ocean and provided a cheque for the 10% deposit of $230,000 to the agent, Cranston Schwarz of LJ Hooker Freshwater.
The cheque was subsequently dishonoured.
On December 16 2009, Gubbay’s lawyer told the vendors she had “no money” and the contract was cancelled by the vendors on December 29 2009.
Court documents reveal that Gubbay owned three other investment properties at the time – in Manly (valued at $950,000 with liabilities of $226,000), Salamander Bay (valued at $380,000 with no liabilities listed against it) and Townsville (valued at $500,000 with liabilities of $492,000).
“The Balance Sheet recorded that the defendant had total assets of $1,830,000 over liabilities of $718,000,” court documents say.
Gubbay was only able to pay $50,000 of the required $230,000 deposit, with her lawyer arguing that acceptance of this amount affirmed the sales contract.
However, Justice Patricia Bergin ruled otherwise: “The fact that the [vendors'] agent banked the $50,000 and the plaintiffs did not direct the agent to return it does not affect the plaintiffs’ right to terminate.”
“That right is lost ‘as soon as the deposit is paid in full’. Those words in clause 2.5 of the contract evidence an intention of the parties that even though part of the deposit might be paid, the right to terminate was not lost until the full deposit was paid.”
Bergin also dismissed a counter claim from Gubbay for the return of the $50,000 deposit.
She said the conduct of Burnet and Clancy was “beyond reproach”
“They were entitled to terminate the contract when the deposit cheque was dishonoured on 17 December 2009. However they did not do so immediately and conducted professional discussions through their solicitors and provided the defendant with an opportunity to pay the full deposit. The defendant did not avail herself of that opportunity.”
Real Estate Institute of Australia acting president Pamela Bennett says the ruling reinforces the fact that an auction process is legally binding.
“At all auctions you must be able to pay the deposit. It is unconditional,” she says.
Source : Larry Schlesinger 6 September 2011. The Smart Company. This article first appeared on Property Observer.
Spring property market set to bloom late
THE wattles are out, the blowflies have made their usual noisy entrance, but that other harbinger of spring, a flood of houses on the market, is absent this year.
Where real estate agents are usually run off their feet getting houses primped and preened for sale in September, this year has been different. It seems, for the most part, sellers are sitting on their hands and waiting to put their properties on the market.
A rush of listings in late spring is not unusual, agents say; what is different is the quiet start.
On the market … Rachel and Toby Billington with their childreAnna, 10, and Jack, 12, at their Forestville home. Photo: Anthony Johnson
”Normally in August I’m flat-out getting properties up and running for the beginning of September,” said the director of Ray White Lower North Shore, Kingsley Yates. ”It hasn’t been the case this year. We’ve certainly been looking at properties but vendors have had the brakes on because we had a white-knuckle ride in the stockmarket in August and that just put things on hold.
”It’s going to be a slower start and that’s a trend, I think, throughout Sydney.”
A director of Richardson and Wrench Peter Baldwin predicted this spring’s selling season would start in earnest about a month late, with the bulk of listings coming at the end of October and the beginning of November.
Despite interest rates being on hold, most sellers were cautious about the market, Mr Baldwin said. ”They’re not punting as they had in previous years, when they would have bought before they sold,” he said.
The principal of Bresic Whitney, Shannan Whitney, said sellers who were prepared to wait would provide good opportunities for those who put their houses on the market early.
Two of those sellers are Rachel and Toby Billington, who are planning to list their three-bedroom house in Forestville at the beginning of next month. They are unsure about the strength of the market but feel that with more buyers expected to be looking, there is more chance of a sale.
”That was a motivation for us to get it on the market in early spring before everybody put their houses on the market,” Mrs Billington said.
Figures from Fairfax-owned Australian Property Monitors, show there are 349 properties due to be auctioned today , up almost 2 per cent from the same time last year.
But APM senior economist, Andrew Wilson, cautioned that 2010 was an unusual year because several factors, including the federal election, pushed many auctions towards the end of spring and into December.
The start of this spring would still be slow, Dr Wilson said, but better than last year.
”We are starting to see a little bit of momentum as we would expect at the start of spring.”
One agent who is optimistic about spring is Jason Boon, from Richardson and Wrench Elizabeth Bay, who had an ”incredible month” in August, with $30 million worth of sales in Potts Point.
He was seeing plenty of people through open homes but only one or two buyers on auction day.
Source : Antony Lawes, Stephen Nicholls, Sydney Morning Herald, 3 September 2011
Weak house prices near turning point as sentiment shifts to possible interest rate cuts
CAPITAL city house prices continued to fall in July but a turning point may not be far off as market sentiment shifts toward the next move in interest rates being lower, property analysts RP-Data Rismark said today.
The RP Data-Rismark Hedonic Home Value Index recorded a fall of 0.6 per cent in capital city home values over the month of July, taking the fall in prices over the first seven months of the year to 3.4 per cent.
Still, recent global market turbulence has fanned a shift in sentiment in markets, with an increasing number of banks now calling for interest rate cuts in Australia as non-mining sectors slow. Financial markets have priced in 125 basis points of interest rate cuts over the next year.
“Australia’s housing market could be at a crucial inflexion point,” said Chris Joye, an international economist at Rismark.
The Reserve Bank of Australia has held its cash rate target at 4.75 per cent since November 2010. It has so far resisted cutting interest rates given inflation risks stemming from the mining boom and a tight labour market.
House prices have been in decline over the last year due to higher interest rates and falling consumer confidence.
RBA governor Glenn Stevens appeared to adopt a more neutral tone in testimony to a parliamentary committee last week, arguing the outlook for inflation is now more balanced.
As the most interest rate sensitive sector of the economy, the housing market will be the chief beneficiary of any decision by the RBA to reduce the cost of debt.
Indeed, borrowers are already benefiting from de facto rate cuts with fixed rate lending rates falling in recent weeks, Mr Joye said.
Weakness in the housing sector follows news yesterday of continued weakness in building approvals, which fell 15 per cent over the year to July.
Still, the housing market across Australia continues to show divergent trends.
Canberra and Darwin posted firms gains in July while Adelaide and Perth retreated. Prices in Sydney, the country’s biggest property market, rose 0.1 per cent.
Source : James Glynn, The Australian Newspaper 31 August 2011
Weekend auction wrap: Where the hammer fell on 27 August
Prices continue to ease across all capital cities, but as September hasn’t been swamped with fresh listings the early spring market appears set for a steady as she goes scenario. It will be late spring when the resilience of the market faces its biggest test.
Melbourne’s median house prices stood at $551,056 over the July quarter, according to Australian Property Monitors data.
It indicated that median housing prices in the Melbourne market remain subdued as it represented a 0.9% fall from the $555,958 recorded in the April quarter.
“It nonetheless recorded the smallest quarterly fall of all the capital cities,” Dr Andrew Wilson, senior economist for Australian Property Monitors, says.
Perth and Brisbane continue to be the worst-performing capitals with their median house prices down by 2.7% and 2.1% respectively. They were followed by Adelaide and Darwin, down by 1.9%, Hobart and Canberra, down by 1.5%, and Sydney where the median house price fell by 1.1%.
Sydney’s median house price fell from $646,806 over the April quarter this year to $639,484 over the July quarter.
Melbourne’s median house price has fallen by 2.9% over the year to July compared with Sydney, where median house prices are down by just 0.6%.
“This is good for stability and confidence, considering prices rose 20% in the 18 months from January 2009 to June 2010.
“Sydney has recorded the best outcome among capital cities through the market’s recent corrective phase brought on by rising interest rates and house prices that put pressure on affordability in most centres,” Wilson notes.
Melbourne’s clearance rate slipped from its revised 57% on the July 20/21 weekend, according Enzo Raimondo at the Real Estate Institute of Victoria. There were a total of 525 auctions on the weekend, of which 289 sold and 236 were passed in, 164 of those on a vendor’s bid.
Sydney’s clearance rate slipped from its revised 57% on the July 20/21 weekend, according to Andrew Fraser at Australian Property Monitors.
For the first weekend of spring the REIV is expecting only a slight boost in Melbourne auction numbers over last weekend, to 530.
The number of auctions expected to be held in Sydney next weekend. APM research analyst Clinton McNabb says this is slightly down on the 362 listings over the last weekend.
Sydney’s most expensive property to go under the was a two-bedroom 1950s house in Gladesville through Ray White agent Robert Cassidy. It last sold at $1.67 million in 1999, reflecting 5.5% annual growth. It had been recently in the rental pool at around $850 a week.
Lethbridge Park offered Sydney’s cheapest auction sale, according to APM. It was a four-bedroom house that last sold in 1998 at $87,000, reflecting 7.8% annual growth. It had been recently in the rental pool at $260 a week. It sold through Richardson & Wrench Rooty Hill agents Colin Mackenzie and Roy Amery.
Adelaide’s top weekend sale was a three-bedroom house at Netherby. It sold through Klermich Real Estate Kent Town agent Steve Alexander. The house set on a 1393-square-metre block had been listed with an $895,000 to $945,000 pre-auction price estimate.
Brisbane’s cheapest sale was a three-bedroom house sold through the Professionals Redland Bay agent Denise Cusack. Its been for sale since last September when it had a $329,000 asking price. It last sold for $147,000 in 2002, reflecting 5.9% annual growth.
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