Auction clearance rates increase againAuction houses reported higher clearance rates again over the weekend with Sydney one again achieving the highest number but Adelaide achieving the largest growth. Nationally the clearance rate saw an increased pace at 81 per cent, climbing 6 per cent from last week. In Sydney the rate was up 2 per cent to 85 per cent; Melbourne increased by 7 per cent to 80 per cent; Brisbane was up 6 per cent to 61 per cent; and Adelaide surged by 14 per cent to 64 per cent following two weekends of declining rates.
Source: Australian Property Monitors
Sydney expected to slow down but some suburbs will be exceptions
The Sydney residential property market has had two years of substantial price gains, rising 30 per cent, but it’s now expected to see slower growth. However the Domain Group’s new Property Guide shows that some of the NSW capital’s suburbs will be exceptions. The guide shows that there is little consensus over the exact levels of price growth this year with NAB suggesting 4.7 per cent, AMP’s chief economist suggesting no higher than 8 per cent and SQM Research’s MD predicting 12 per cent. Growth in double figures would, in the opinion of John McGrath from AMP “require a correction.” Senior economist with the Domain Group Dr Andrew Wilson says that some suburbs could see at least 12 per cent growth in house prices including Lilyfield, Baulkham Hills and Kellyville; and in other suburbs, including Collaroy, Rhodes and Waterloo, prices for apartments could be up by 7 per cent or more.
Source: The Domain Group
Property Council calls for “facts-based debate” on foreign investment
The federal government’s recent proposal to introduce new fees for foreign buyers of Australian property has sparked debate among those who believe that overseas buyers are bad news for the market and drive up prices and those who say without them the property sector would suffer. The Property Council of Australia who quickly and robustly opposed the fees is calling for a debate on the issue based on facts. Chief executive Ken Morrison says the idea that foreign buyers increase prices is wrong: There is no evidence to support the claim that foreign investment is pushing house prices up or first home buyers out. Foreign investment puts downward pressure on house prices and helps bring on new housing construction, which increases the opportunities for Australians to get into the property market.” He says that many buyers would be put off by having to pay another $5,000 on top of existing charges, a claim that has been dismissed by Treasurer Joe Hockey. Morrison believes that the costs will filter through the market and mean that everyone in the housing market will pay more.
Source: Property Council of Australia