Real estate rebound spreads beyond Sydney

Editorial director of Switzer
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The property market in Sydney has been lifting for some time – the weekend was the fourth one in a row where an 80% clearance rate was recorded – but that trend is now starting to be picked up by other states, with the weighted average of the combined capital cities clearance rate edging up to almost 70%.

RP Data recorded a preliminary combined capital city auction clearance rate of 69.6%, compared to the previous weeks result of 65.3% (see graph 1 below).

In Sydney, APM recorded the auction clearance rate at 81.3% and RP Data at 78.4%. Melbourne’s clearance rate was 69% and 69.7% on the APM and RP Data measures respectively (see table 1 below).

But of particular note were the 60% (APM) and 65.9% (RP Data) rates recorded for Adelaide, where rates had been languishing in the 40 to 50% ranges (see table 2 below).

A year ago, Sydney had been starting to show some improvement, with a clearance rate moving close to 65% but other states were still struggling (see table 3 below).

RP Data also calculates a ‘new listings’ lead indicator. The property data provider says RP Data customers account for 70% of all listings in the Australian property market, which means the index has a 75% correlation with the actual market. The data for each state is shown in the table below and highlights that increased activity in the property market is spreading beyond Sydney, with a 4% monthly increase in Victoria and a 3.2% increase in South Australia.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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