Real estate transactions are up as Australians have proven their preference for bricks and mortar as a sound investment, pouring their money into the property market and lifting its value to a staggering $5.6 trillion.
This is in direct comparison to superannuation funds which are worth about $1.8 trillion and our share market which is worth about $1.6 trillion.
New figures from RP Data reveal buyer demand for property has levelled out, but property purchasing is still at a high. Transaction levels are 9.8 per cent higher than a year ago with 351,738 houses and 140,277 units bought in the year to July.
The latest market report identified Darwin as having the property market with the highest long-term capital gain of any capital city. Its median house price rose by 8.2 per cent per year for the past ten years while its unit values went up by 8.3 per cent.
Sydney still had the highest capital gains in the past year with dwelling values up by a hard-to-beat 14.3 per cent. Sydney’s median house price was also the highest in the country at $750,000.
After a winter period where many buyers lamented the lack of quality stock on offer, spring, as expected, has seen a welcome influx of new listings.
The Housing Industry Association (HIA) says the home-building recovery has brought activity to its highest level in 20 years based on recent Australian Bureau of Statistics data. With home starts topping 180,000, Shane Garrick, chief economist at HIA, has welcomed the result. “Back in early 2012 when activity was so low, the prospect of breaking through 180,000 starts within a couple of years was beyond almost everybody’s most optimistic expectations.” However, HIA analysis indicated new housing starts will need to reach around 186,000 annually between now and 2050 to meet requirements. “This is a stark illustration of the serious supply-side issues which will need addressing.”
After a winter period where many buyers lamented the lack of quality stock on offer, spring, as expected, has seen a welcome influx of new listings. Thousands of properties are scheduled to be auctioned on the first weekend of November, with Melbourne expected to break the national auction record for the second week in a row.
According to RP Data spokesman Robert Larocca, the preliminary national auction clearance rate for the week prior to this was 70.5 per cent, which is impressive; however figures vary markedly from state to state. Sydney was a stand out with a clearance rate of 78.1 per cent followed by Melbourne at 70.6 per cent. About half of the properties taken to auction in Brisbane sold under the hammer, in Adelaide it was slightly higher with 55.6 per cent of properties sold, Canberra’s clearance rate was 58.3 per cent while Perth was 28.6 per cent.
At One Agency we are always open for a conversation, so if you have anything to say in response or have any questions, please contact us.
T 1300 79 23 88
T +61 2 8039 2110 (International)
Back to top
Back to top
