The national clearance rate across the combined capital cities came in at 65.7% this week, compared to 70.9% last week. According to research house RP Data, this fall is largely due to softening demand in Melbourne.
Weekly clearance rate, combined capital cities
Sydney’s clearance rate was 77.4% this week, compared with 76.9% last week. The Labour Day long weekend and NRL Grand Final resulted in a temporary drop in auction volume levels (Sydney’s held only 465 auctions, while Melbourne’s held 887).
Melbourne’s clearance rate also dipped this week to 65.6% compared to 77.3% last week, and 71.3% this time last year.
Capital city auction statistics (preliminary)
Across the combined five capitals of Sydney, Melbourne, Brisbane, Adelaide and Perth, the weekly change in home values was 0.6%, while the year to date change was 6.7%.
Capital city home value changes
What’s next for residential?
In an interview on Switzer TV last week [1], Louis Christopher of SQM Research said momentum in Sydney is likely to continue if current interest rate levels remain, and forecasted 8-12% capital growth across 2015. In Melbourne, he expects 5-9% growth.
Christopher also expects a national property market increase of 5-9% in the next 12 months, but he said the key will be whether the Reserve Bank of Australia (RBA) introduces macro-prudential tools to limit levels of investor lending.
The RBA [2] is currently in discussions with APRA about steps that might be taken to reinforce sound lending practices, with particular focus on investor finance. No steps have yet been taken.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
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Also in the Switzer Super Report:
- Peter Switzer: Now is not the time to lose faith [4]
- Paul Rickard: SSR portfolio update: ‘dollar’ stocks make ground [5]
- James Dunn: Four regional gems for your portfolio [6]
- Rudi Filapek-Vandyck: Buy, Sell, Hold – what the brokers say [7]
- Penny Pryor: Shortlisted – Oil Search and Boral [8]
- Barrie Dunstan: Stress-test your investments [9]