Auction clearance hits 80 per centAfter another busy weekend at the property auctions saw the national clearance rate hit 80 per cent, up from 76 per cent last week. Sydney once again led the way with 88 per cent of properties selling, last week it was 84 per cent. After two weeks at 76 per cent Melbourne increased to a 79 per cent clearance rate. Brisbane and Adelaide saw large increases although smaller overall rates; Brisbane up from 34 per cent to 46 per cent; Adelaide up from 52 per cent to 63 per cent.
Source: Australian Property Monitor
Unit owners more likely to make a loss on salesWhile the number of properties selling for a profit has increased new figures show that unit owners are more likely to make losses on sales than those selling houses, partly due to investors needing to sell quickly. CoreLogic RP Data figures reveal that the proportion of properties selling for less than owners bought them for was 8.6 per cent in the December quarter of 2014, down from 9.1 per cent in the previous three months. This is the lowest level since June 2011 but for those that did make losses the average was $65,435. The average gross profit made by sellers was $251,696. While only 2.5 per cent of Sydney’s homes sold at a loss and Perth and Melbourne’s losers amounting for 5.5 and 5.6 per cent respectively, elsewhere losses came in at above the national average; Adelaide 8.9 per cent, Darwin 10.3, Brisbane 10.5, the ACT 10.8 and Hobart 15.5.
Source: News Corp Australia Network
Volatile shares make properties even more investibleInvestors already love property but the uncertain and volatile stock markets around the world are making it even more attractive to investors. Stock markets have seen frequent sell-offs in recent weeks as oil prices and economic concerns prompt investors to take profits while they can. That means that for the traditionally-busy Easter weekend there will be even more investors with cash in the bank and a hunger for homes. Forecaster MacroPlan Dimasi predicts that Sydney’s luxury market, above $5 million, will increase in value by 5 per cent between April and September; those above $3 million in Melbourne will increase by 3 per cent; but in Perth and Brisbane the market will be flatter. MacroPlan Dimasi chief economist Jason Anderson told The Australian that he expects a turnaround in the luxury market, which was 10 per cent lower at the beginning of 2014 than it was in 2008: “There are signs that the sharemarket rally that we had is petering out and there is not as much momentum there and you might get a process where pretty wealthy people start cashing in; it could be a springboard for luxury sales.”
Source: The Australian