Melbourne auction market clearance rate peaks!!

MELBOURNE’s auction market had its highest clearance rate over the weekend since the end of the property boom in December 2007.

Of the 452 properties up for auction, 83 per cent sold and 77 properties were passed in!

But the number of properties for auction was 126 fewer than at the same time last year!

The CEO of Real Estate Institute of Victoria attributed the high clearance rate to the extension of the first-home buyer’s grant which was announced in last week’s federal Budget, combined with low interest rates and an increase in investor numbers.

“It’s off a low base. There were not a lot of auctions,” Mr Raimondo said.

“The part of the market which is performing really well is priced at or below the medium of about $410,000.

“In the last 12 months that’s stayed very stable.”

Mr Raimondo expects the strong clearance rate to continue.

“The next two weeks we expect to see just under 1300 auctions, which is a very high number of auctions at this time of the year.

“I expect the clearance rate to remain high until the 30th of September (when the full first-home owner’s boost will be phased out).”

Flat and apartment clearances were also strong: 90 per cent of 136 properties at auction sold.

The latest residential land report from the Housing Industry Association revealed Melbourne’s median land price grew 0.7 per cent in the December quarter to a record $152,000.

The HIA-RP Data residential land report showed the price of land in Melbourne was up 4.8 per cent over the year.

The median land price in regional Victoria fell 2.8 per cent in the December quarter to $97,250, the lowest price since mid-2007.

Melbourne auction market clearance rate peaks!!

MELBOURNE’s auction market had its highest clearance rate on the weekend since the end of the property boom in December 2007.

Of the 452 properties up for auction, 83 per cent sold and 77 properties were passed in!

But the number of properties for auction was 126 fewer than at the same time last year!

The CEO of Real Estate Institute of Victoria attributed the high clearance rate to the extension of the first-home buyers grant which was announced in last week’s federal Budget, combined with low interest rates and an increase in investor numbers.

“It is off a low base. There were not a lot of auctions,” Mr Raimondo said.

“The part of the market which is performing really well is priced at or below the medium of about $410,000.

“In the last 12 months that has stayed very stable.”

Mr Raimondo expects the strong clearance rate to continue.

“The next two weeks we expect to see just under 1300 auctions, which is a very high number of auctions at this time of the year.

“I expect the clearance rate to remain high until the 30th of September (when the full first-home owner’s boost will be phased out).”

Flat and apartment clearances were also strong: 90 per cent of 136 properties at auction sold.

The latest residential land report from the Housing Industry Association revealed Melbourne’s median land price grew 0.7 per cent in the December quarter to a record $152,000.

The HIA-RP Data residential land report showed the price of land in Melbourne was up 4.8 per cent over the year.

The median land price in regional Victoria fell 2.8 per cent in the December quarter to $97,250, the lowest price since mid-2007.

Top growth performing suburbs

The rich list has been announced and the top performers for both houses and units were areas of NSW.

RP Data released its top price growth suburbs, recording the greatest increase in median house and unit prices during the 12 months to December 2008.

North Sydney suburbs were the standout performers for both houses and units with median house prices appreciating 47.4 per cent in McMahons Point and unit prices growing 49.8 per cent in Greenwich.

The NSW list comprised mainly areas outside of Sydney and includes Dubbo, Jindabyne, Queanbeyan East and Brunswick Heads.

Victoria was a different story with only one area outside of the metro area making the list. Irymple in Mildura was the regional victor experiencing a median unit price increase of 35.3 per cent.

The Victorian results mainly comprise of areas in the Melbourne Statistical Division with both the top performers – Portsea’s median house price increase was 38.6 per cent to $1,455,000 and Dallas’ median unit priced leaped to $222,500, an increase of 48.3 per cent.

The QLD market showed many areas outside of the Brisbane area as strong performers in capital growth.

The state’s top performers are houses in River Heads at Hervey Bay with prices increasing 43.1 per cent and units in North Lakes increasing by 47.3 per cent.

South Australia’s winners are dominated by areas of Adelaide with only Port Hughes, Roseworthy and Owen outside of the capital city location.

The standout performers for houses is Teringie (49.5 per cent) and for units Underdale (47.8 per cent).

The strong growth results centred around Adelaide aren’t a surprise given that it remains mainland Australia’s most affordable capital city market and has been an excellent performer throughout 2008.

Perth dominates the WA list. Which is surprising given the poor performance overall of the Perth market during the last 12 to 18 months.

Homes in Coolbinia are a standout, with a median price increase of 43.1 per cent. Units, the port side suburb of South Hedland saw the greatest increase jumping 44.4 per cent to $455,000.

Outside Perth, the list is exclusively populated by areas linked to the mining and resources sector.

For Tasmania, the top performer for houses is Campania, recording a 46.3 per cent, and units saw Hobart taking top spot with 35.7 per cent!

Northern Territory winners are almost entirely located within Darwin, with Virginia recording the strongest growth in houses (30.9 per cent) and The Gardens topping the list in units (39.0 per cent).

Throughout the ACT, the strongest performing suburbs are within close proximity to the city centre – Franklin’s houses recorded a 25.6 per cent increase and Campbell’s units 49.7 per cent!

Victoria

Houses

Units

$40b lost in six months as Victorian property prices plummet

VICTORIAN property values have plummeted about $40 billion in the past six months.

Melbourne’s median house price of $450,000 mid-2008 is now down to $427,500, according to estimates.

And house price expectations across Australia have sunk to an all-time low, a new report says.

Victoria’s $800 billion residential property market has dropped 5 per cent - or $40 billion - overall since July, according to BIS Shrapnel calculations prepared for the Herald Sun.

The trend has opened the door for potential borrowers desperate for cheaper housing.

The latest Mortgage and Finance Association of Australia/BankWest Home Finance Index shows almost two in three Victorians expect the value of their biggest asset to erode in the first three months of this year.

"The expected decline in prices will help address the chronic problem of housing being unaffordable for a lot of Australians, and first-time buyers are likely to be enticed back into the market," MFAA chief Phil Naylor said.

Recent Real Estate Institute of Victoria sales results show the volatile economic climate is producing winners and losers.

Expensive suburbs such as Albert Park and Armadale recorded price drops of at least 30 per cent in the three months from June.

However, other suburbs, including Fitzroy and Beaconsfield, jumped 20 per cent.

BIS Shrapnel senior economist Jason Anderson said the spectacular credit crunch price crashes witnessed in the United States would not happen here because Australia had a housing shortage and tenants hoping to escape the rent trap.

The research company predicts Melbourne’s median house price will rebound 4 per cent during 2009-10. The median value is tipped to increase 9 per cent in the three years to June 2011.

Read the full article here: http://www.news.com.au/heraldsun/story/0,21985,24881569-5013926,00.html