Spring shines on property market

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Spring looks set to deliver a strong property market, after the auction clearance rate across the capital cities ended higher at 74.4%, after last week’s 72.9%.

Weekly clearance rate, combined capital cities

Sydney was the best performer at the weekend, with a clearance rate of 82.4%, compared to 79.9% last week. RP Data housing market specialist, Robert Larocca, says these results are an indication of the high levels of competition and confidence from buyers. He also anticipated that the market would be positively impacted by the RBA’s decision to keep interest rates at low levels for the thirteenth consecutive month.

Higher confidence levels from both buyers and sellers are also being observed in Melbourne’s auction arena, and Larocca feels this Spring season is shaping up to be better than last year, with more homes being listed and sold. This week, Melbourne’s clearance rate was 75.1%, compared to 73.5% last week.

Capital city auction statistics (preliminary)

RP Data also recorded the home value changes across the combined capital cities of Sydney, Melbourne, Brisbane, Adelaide and Perth, and prices came in lower than last week by 0.3%. However, the year to date price change across the combined five capitals remains 5.9% higher.

Capital city home value changes

Dr Andrew Wilson from the Domain Group said the best auction results in Sydney at the weekend were in the inner west, with the most number of sales and the highest clearance rate of all suburban regions, at 89.7%.

The North West, lower north, and Canterbury Bankstown closely followed, and all had clearance rates over 84%. The most expensive property sold at the weekend was a four-bedroom home in Burwood, which sold for $4.46 million, while the most affordable property was sold in Tregear for $370,000.

Wilson said the driving force behind Melbourne’s solid recent performance has been the eastern suburbs. At the weekend, Melbourne’s inner east reported the most number of sales and the highest clearance rate, at 89.2%.

Closely following the inner east was the outer east, at 85.2%, and the inner city, at 79.3%. The most expensive property sold on the weekend was a seven-bedroom home in Lysterfield, for $3.40 million, while the most affordable property was a three-bedroom home in Melton South, which sold for $140,000.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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