The strong level of pre-listing activity across the real estate market has continued again during the most recent week with the Market Activity Index once again eclipsing its previous record high during the previous week. The Index now sits at 138.8 points, which is 39% higher than at the same time last year (as it was last week). This high volume of pre-listing activity is likely to continue translating into an above average volume of new listings during the coming weeks.
Industry Market Wrap
After surprising everyone last month with their decision to keep official interest rates on hold, the Reserve Bank (RBA) lifted official interest rates by 25 basis points this week to 4%. The average standard variable interest rate now sits at 6.9%, edging close to a more ‘normal level’. The substantial amount of positive economic news during the last month no doubt swayed the decision of the RBA Board.
Although most economic news of late has been positive, data released this week showed weak results for building approvals during January. During the month the number of dwelling approvals fell by -7%. What is probably most confronting is that approvals for private units fell by -29.1% over the month whilst there was a slight increase in approvals for private houses which increased by 0.3%. Whilst approvals for units and houses are much greater than they were at the same time during 2009 a sustained recovery is what is required. Ideally month-on-month approvals should be increasing not dwindling, especially amongst unit product as it will be imperative to housing Australia’s growing population over the coming years.
Advertised Stock on the Market
As pre-listing activity continued to ramp up, the number of new listings this week increased slightly after recording a fall last week. The total number of listings also increased slightly after easing during the previous week. Despite strong volumes of new listings total listings remain -5% lower than at the same time last year.
Want to know what is happening in your local patch? Make sure you have subscribed to rpdata's On the Market® service. Click here or phone 1300 734 318 for a free 2 week trial. Latest National Auction Clearance Rates
Last week saw the greatest number of auctions so far this year with 2,200 auctions, an increase in volume of 52% from the previous week. Across the combined capital city markets the weighted average clearance rate was 73%, slightly down from the 74% recorded last week. The nation’s largest auction market, Melbourne, recorded a clearance rate of just below 80%. Sydney which is the second largest auction market recorded a clearance rate of 75% which was an improvement on the previous week’s results.
Want to know the auction results for your local area? Log into rpdata.com and go the Auction Results panel on the top right corner of the home page.
Number of Properties Advertised for Rent
The number of new rental listings advertised during the most recent week fell by almost -16%. The fall in new listings also resulted in a fall in the total number of properties being advertised for rent which eased by -7% during the week. Compared to a month previous, new rental listings sit at a similar level whilst total listings are slightly higher currently.
The coastal wrap
After our look at the rural markets last week this week’s Property Pulse takes a look at how property markets performed during 2009 in some of Australia’s best known coastal regions.
Australia’s capital city markets performed well during 2009 and last week’s Property Pulse detailed that the larger rural areas had mixed results which were also generally positive. This week’s Property Pulse will uncover the facts about the much maligned coastal markets.
Capital city median prices at the end of January 2010 are recorded at $475,000 for houses and $398,000 for units. Whilst many coastal regions have some exceptionally high quality and expensive properties, median prices are generally more affordable in these markets than they are within capital cities.
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Blog: A shaky start for new housing
supply in 2010
Dwelling approvals data released on the 2nd day of March by the Australian Bureau of Statistics was a stark reminder that the amount of new housing approved for construction remains well out of kilter with Australia’s rapid rate of population growth. The total number of approvals fell by 7 percent on a seasonally adjusted basis in January, dragged down by ongoing weakness in the apartments sector. The good news is that approvals are now almost 50 percent higher than when they bottomed in January last year.
Three of five retail properties in Victoria have been sold by agents of Gray Johnson on behalf of Origin Energy.
Formerly Origin Shops, the properties at 411 Centre Road, Bentleigh, 38 Portman Street, Oakleigh, and 452 Sydney Road, Coburg, were placed on the market following Origin’s review of its retail market presence.
Gray Johnson director, Matt Hoath, marketed the retail properties, which sold for a total of $7.825 million.
The vacant property at 411 Centre Road, Bentleigh, comprised of a two-storey retail and office building of 340 sqm that sold for $3.8 million, well above the asking price of $1.9 million.
The second property at 38 Portman Street, Oakleigh, a 230 sqm double storey retail building, had an asking price of $1.4 million and sold for $2.675 million.
The property is leased to a local trader for $65,000 plus GST for a five-year term from mid-July 2009 plus a five-year option.
Leased to The Salvation Army (Vic) Property Trust for five years with two five-year options at a rate of $48,000 per annum, 452 Sydney Road, Coburg, sold for $1.35 million.
The last two former Origin Shop properties in the Ballarat and Geelong CBDs are to be taken to auction 5 March 2010.
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