August property market wrap up: steady as she goes

August property market wrap up: steady as she goes

In the last month before the spring property season kicked off, there wasn’t much movement in major markets around Australia. Most markets were stable during August, but spring will likely bring more listings, which could affect different cities in different ways.

Here’s my breakdown of what happened in the property markets in each capital city during August and what’s to come this spring:

Melbourne

Average clearance rate: 75% Average number of auctions per weekend: 836

The Melbourne market remained strong and stable. The average number of properties going up for auction increased in the month, and with the spring season opening, there are likely to be even more moving forward.

This could be good news for buyers, and Melbourne is still a first home buyers market, especially with the stamp duty exemption to support them, but I’d expect prices to remain where they are or start increasing before they decrease. As the most liveable city in the world, there’s still plenty of demand to match growing supply in Melbourne.

Sydney

Average clearance rate: 70% Average number of auctions per weekend: 597

Things were mostly steady as she goes in Sydney during August. The massive price rises have shown signs of slowing in Sydney recently, and as listings rise during the Spring season, there’s a good chance they’ll start to slow even further.

But I don’t think this will have a major impact on what remains a very strong market. Look out for more ‘for sale’ signs though as properties get harder to sell at auction.

Adelaide

Average clearance rate: 71% Average number of auctions per weekend: 52

The Adelaide market was pretty static this August, but as in other markets, I’d expect listings to pick up as spring gets underway.

Adelaide’s saving grace may be that it’s still cheap enough to tempt investors who are sick of the high prices in hubs like Sydney and Melbourne. I think if more investors begin to take notice of that fact, there could soon be a pickup in the Adelaide market.

Brisbane

Average clearance rate: 48% Average number of auctions per weekend: 95

Brisbane’s clearance rate dropped again in August, which isn’t encouraging. Being a slower market, private treaty sales are much more popular in Brisbane, which could partly explain its low listing numbers.

But much like Adelaide, I think Brisbane is another affordable market where houses outside of flood zones could start to see attention from investors who have been priced out of Sydney. The same could be said for other markets in Queensland, such as the Gold Coast.

Canberra

Average clearance rate: 76% Average number of auctions per weekend: 50

There hasn’t been much movement in the Canberra market, but I think the spring season will bring improvement, mainly because investors will be looking to buy into a market where vacancy rates are low and asking rents are growing.

‘Rentvesting’ is one trend that has taken hold in Canberra recently, as people look to buy in more affordable areas, while renting where they’d really like to live. Canberra’s low house prices, clocking in at a median of $723,299, make it an attractive proposition for rentvestors living in Sydney, where even a unit goes for around $757,991.

August property market wrap up: steady as she goes was last modified: September 7, 2017 by Steve Jovcevski

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