The capital city auction market is delivering the best results seen in five years, according to research house, CoreLogic RP Data.
Weekly clearance rate, combined capital cities
At the weekend, the preliminary weighted average clearance rate was 77.1% across the capital cities, compared to 77.3% last week and 70.2% this time last year.
Sydney remains an untouchable force in the national property market, bringing in a preliminary clearance rate of 82.8% this week, compared to 86.2% last week. This week marks Sydney’s fourth consecutive week of clearance rates over the 80% mark.
Melbourne’s clearance rate was up this week at 76.5%, compared to 75.8% last week.
Capital city auction statistics
Sydney forecasts – will it be another stellar year?
There are many differences among the experts regarding Sydney’s expected level of price growth in 2015.
In the Domain Property Guide 2015, NAB forecasts 4.7% price growth, while AMP’s chief economist Shane Oliver expects levels no higher than 8%. On the more bullish end of the property spectrum is SQM Research’s MD Louis Christopher, who predicts much higher levels of 8% to 12%. “I see no reason why it is going to go lower than 8%,” he says.
McGrath’s chief executive John McGrath says double-digit growth would probably require a correction, and expects no more than 7-8% growth this 12-month period.
The best places to invest in 2015
Property expert Margaret Lomas says that you should beware the hottest market that is Sydney, and recommends looking for those markets that are likely to boom next.
She suggests South East Queensland as a good spot to buy into at a great price today to secure a solid growth trajectory.
“I like those which are the present recipient of massive transport infrastructure upgrades, and creation of improved employment opportunities. These areas include the Logan and Upper Mount Gravatt areas to the south of Brisbane, and much of the Moreton Bay Shire to the north, focusing on the coastal areas of Redcliffe, Margate and Kippa-Ring.”
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