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Continuing from last week’s news summary, The Australian’s Elias Visontay revealed that the RBA’s cut to official interest rates has triggered a surge in housing interest. This has been assisted with China-based purchasers avoiding overseas investments amidst trade turmoil with the USA. Realestate.com.au saw a 25% increase in online property searches, according to REA Group’s Chief Economist Nerida Consibee. (Rate cuts pique housing interest, 16/10/19) The RBA indicated that low construction commencements combined with more buyers will also force price growth; Housing Shortfall Will Kick-Start Price Growth: RBA. However, some suburbs in Melbourne and Sydney are seeing a significant underperformance in high-rise apartments. The Age’s John Collett believes this is the result of oversupply and highly publicized construction defect issues. (Melbourne high-rise apartment prices lag houses by 50 per cent in some suburbs, 13/10/19) On Monday, The Australian’s Mackenzie Scott reported that Hobart has experienced the most growth in the last five years because of its increasing rental yields and high growth. (Southernmost properties now the apple of investor’s eye, 14/10/19) In relation to auction clearance rates, The Real Estate Conversation reports on improving results; Higher auction volumes see clearance rates bounce back.
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