Spring fever in the property market

Editorial director of Switzer
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The auction clearance data for the major capital cities again highlights the differences between Sydney and Melbourne. Sydney’s initial clearance rate for the weekend was 81.2%, with 473 reported auctions (see table 1 below). Melbourne also recorded an above 70% rate – 74.7% – but there were only 81 reported auctions, as Melbournians headed to the racetracks to celebrate Derby Day.

Table 1: This Saturday, 2 November 2013

In the revised data for the previous week, Melbourne was at full tilt for another Super Saturday. Its initial 76.9% was revised down to 75.6%, but it saw a massive 1,141 reported auctions, from 1,356 properties listed (see table 2 below). Sydney saw a bigger revision downwards, with its initial number of 83.2% revised to 77.7% a week later.

Table 2: Saturday, 26 October 2013

This time last year, rates were still hovering around the 60% mark for both Sydney and Melbourne (see table 3 below), with just 276 and 70 properties sold respectively in each capital city.

Table 3: Saturday,3 November 2012

The RP Data national weighted auction clearance rate for capital cities was 72% on the weekend. Despite all the talk of a property boom, this rate is now hovering near levels seen in 2009 and 2010 (see graph 1 below).

Graph 1: Weekly clearance rate, combined capital cities

And the capital city home value changes show that the price increases are concentrated in Sydney and Melbourne, which are up by 11.8% and 7.7% respectively (see table 4 below). Perth has also experienced strong growth, but this is starting to flatten out, with the mining capital recording a negative number for the past month.

Table 4: Capital city home value changes

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