More than 3000 auctions are scheduled throughout the country this week, up 53 per cent over the same time last year. Melbourne leads the list with 1137 auctions scheduled, then Sydney with 1017 properties to be auctioned this week — almost double last year. Adelaide has 119 auctions scheduled, Brisbane 175 auctions, 72 in Canberra and 69 in Perth. It’s hard to predict whether clearance rates (and prices) will be able to continue at previous rates given this large volume of available stock. Read the full story here.
Population growth will push homeowners into units instead of single-family housing
Growth across Australia’s capital cities means more demand in the unit market, where in many suburbs the median unit price remains below $300,000. The disparity between prices of units and houses, like in Canberra where house values are 46 per cent higher then units, probably can’t last as more people enter the market. Read the full story here.
Vacancy rates for rental property starting to climb, leaving investors a bit cranky
SQM Research notes that Australia’s vacancy rate jumped from 2 per cent to 2.3 per cent last month, to the highest level in nine years. Construction permits continue apace, though, suggesting that the rental market will increasingly favour tenants over the next 12 months. What to do? Read the full story here.
Rental prices aren’t keeping up with the cost of investment
Home prices have been climbing far faster than the price of rent supporting properties as investments. While the negative gearing arrangement leads to a robust tax benefit, it also leaves economists to worry about a speculative bubble built on expected capital gains. Only in Sydney has rent increases outpaced general inflation, while rent has actually been falling in Perth and Canberra. Read the full story here.
Collections: Mortgage News