Sydney leads the pack in auctions
With a clearance rate of 75.9 per cent, Sydney came top in Australia's auction clearances last week. Melbourne followed at 66.1 per cent, then Adelaide with 62.8 per cent. Canberra had a clearance rate of 53.1 per cent, while Brisbane fell starkly to 44.2 per cent. Sydney gained 0.3 per cent in values while Adelaide had the biggest jump to 0.4 per cent. Melbourne fell 0.1 per cent, Perth was down 0.2 per cent and Brisbane lost 0.7 per cent in values. Read the full story here.
Regulators remain in spectator mode while rising debt shapes property market
Australian household debt has hit a 25-year high, according to statistics bureau figures. The draft report showing the housing market to be a potential threat to the financial system has been floating around for about two weeks now. The IMF says Australia's housing is the third-most overvalued in the world. An average mortgage is four times household income in almost 80 per cent of the country. But the Reserve Bank of Australia isn't budging on interest rates. Rising prices, it seems, spur construction, and the size of Australia's housing stock remains too low to support anticipated growth. And folks living in Adelaide, Hobart and Canberra aren't feeling particularly overvalued compared to the rocket rise of prices in Sydney and Melbourne. But those regional price increases have resulted in new mortgages rising 16 per cent in May from a year ago, with the average new home loan up 6.7 per cent to $433,960 in June from a year ago, according to broker Australian Finance Group. Read the full story here.
Australian MPs heading to China with foreign investment issues in mind
We know how Chinese money works in Australia's real estate market. Australian MPs want to know how it gets here. A delegation from the House of Representatives economics committee will visit China this week as part of an annual political exchange, as China enters the final stages of negotiating a free trade agreement with Australia. The committee has been looking into foreign investment in real estate to examine if investment rules are being broken or if the practice is forcing up prices. MPs will meet economists, the China Banking Regulatory Commission, the National Development and Reform Commission, the People’s Bank of China and the China Development Bank. Read the full story here.
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