RP Data’s measure of pre-listing activity by real estate professionals, the Market Activity Index, has eased over the most recent week. The Index results suggest there is still no visible improvement in pre-listing activity that we would normally see in line with the ramp-up of the spring season. This trend suggests quieter selling conditions during the earlier part of spring (if not for all of spring).

A number of important data releases have come out over the past week notably, the Australian Bureau of Statistics has released labour force and dwelling commencement statistics and Westpac and the Melbourne Institute’s has released their September consumer sentiment survey results. Labour force statistics which were released last Friday showed that during August Australia’s unemployment rate fell to 5.1% on a seasonally adjusted basis. On an annual basis the results are very encouraging: 3.2% more people are in work and full time employment numbers are growing (3.5%) more rapidly than part time employment (2.5%) over the year. With more people in work that means additional income and more money to spend, whilst this is good for the economy it could prove to be inflationary and may provide greater incentive for the RBA to lift official interest rates.

Dwelling commencements data released this week for the June quarter showed that total dwelling commencements increased by 0.8% for the quarter and they have increased by 43.8% over the year. During the quarter, private sector house commencements have eased by -3.9% however, this has been offset somewhat by the 11.5% increase in commencements of private sector units.

Westpac Bank and the Melbourne Institute released their monthly Consumer Sentiment index this week also. Over the last month consumer sentiment has fallen by -5.0% from 119.2 points to 113.2 points. Westpac reported that they found the significant fall ‘surprising’ and that the August results probably overstated the market a little. With the index still well above 100 points it shows that optimism is outweighing pessimism and with most economic data released during recent weeks being positive it is likely optimism will persist.


Advertised Stock on the Market

The number of newly advertised residential properties across Australia has increased by 0.9% over the week however, the volume of new listings sits right on 12 month average levels. The total number of advertised residential properties has also increased over the most recent week (+0.7%). The total number of advertised properties remains at above average levels, 3.6% higher than the average during the last year.

Over the last three decades Australian house prices have recorded periods of extreme growth contrasted with periods of weakness. With the benefit of time, the peaks and troughs of house price growth tend to even out, with Australian house prices recording an average annual rate of growth of 8.4%.

The Australian property market moves in cycles which are influenced by a wide range of factors including unemployment, interest rates, consumer confidence and of course previous rates of growth that impact on rental yields and levels of affordability.

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A commercial building in the Sydney CBD has been sold at auction by agents of Ray White City South to a Hong Kong investor.

The three-storey building at 750 George Street, Sydney, was sold with several leases in place to retail tenants.

Ray White City South associate director, Raymond Hung, marketed the property, which achieved a final selling price at auction of $4.6 million.

Originally built in 1890, the building formerly known as English’s Chambers has a gross floor area of approximately 655 sqm, a street frontage of 6.08 metres and a site area of 151.8 sqm, zoned City Centre.

According to Mr Hung, levels one and two of the building are currently vacant and the net rent of $163,000 per annum from the remaining tenants gave the sale a yield of approximately 3.5%.


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The unemployment rate across Australia has fallen to just 5.1%, however the headline figures hide the fact there are key regions around the country where the number of unemployed remains high.

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