Property growth moves to the fringes

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The auction clearance rate across capital cities edged up to 70.5% over the weekend, compared to 68.6% the previous week. But it was still lower than the 71.8% recorded last year.

In Sydney, the clearance rate was 78.1%. Although higher than last week’s 72%, it was also slightly down on last year’s 79.7%.

Melbourne’s results were most consistent. A clearance rate of 70.6% was recorded on the weekend, compared to 71.7% last week and 71.9% a year ago.

The median price of homes sold by private treaty (which represents around 85% of all dwelling sales across the country) was $750,000 for houses in Sydney and $505,000 in Melbourne. The combined capitals median private treaty median price was $575,258 for houses and just under half a million for units.

Domain Group’s senior economist, Andrew Wilson, said that in Sydney the leading region was the inner west, with a clearance rate of 85.4% and 88 sales from 103 reported auctions. In Melbourne, the outer east region had the highest clearance rate of 85.2%.

The next big thing

RP Data research director Tim Lawless reports that while sales in the big cities like Sydney and Melbourne might be steadying, momentum is gathering in Tasmania, Queensland and South Australia.

“While coming from a low base…growth and transaction numbers are moving higher. Tasmania recorded the most significant increase where the rolling six-month trend in sales hasn’t been as high since July 2009,” he said.

SQM Research’s Louis Christopher also points out that inner areas of the big cities, like Sydney, are getting more and more out of reach for many families, including upper income earners.

“Instead families are looking to the middle ring and outer rings of Sydney and strangely that is where the price gains have been the greatest,” he says.

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