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Many news sources this week reported on Australia’s residential market, and the improving house prices and auction clearance rates. Duncan Hughes, AFR Reporter, released an article on Wednesday explaining how the markets in most of Australia’s capital cities are rebounding. Melbourne and Sydney saw the biggest increase in buyer confidence, which will translate into price growth. (Melbourne, Sydney and Brisbane property markets bounce off market bottom, 09/10/19) On Friday, the AFR’s Michael Bleby and Matthew Cranston reported that looser borrowing terms and rising prices are encouraging investors to return to the property market. Many economists believe that this is being stimulated by the RBA’s interest rate cuts. UBS predict that it may result in the RBA holding off further rate cuts. (Property investors roar back, 10/11/19) However, Hughes, and REA Group’s Chief Economist Nerida Consibee (The Australian) reported that not all dwellings are seeing prices and buyer interest rising – units and apartments are still “stuck at the bottom”. This is the result of a few factors, but it is predominantly caused by some areas of oversupply and fears of construction defects. (Market on the rise, except for units, 10/10/19) The RBA has also detected improvements in the housing market, and is warning buyers about a rapid growth in prices over time. Clancy Yeates, in The Age, wrote that as Australia’s population grows, construction of new housing needs to grow with it, otherwise prices will increase dramatically as supply worsens. (RBA warns of risk of ‘rapid housing price growth’, 04/10/19) For the latest Auction Clearance rates, Domain’s National Auction Results provides interesting and comparable data on different regions. For specific suburbs which are predicted to see significant price increases, The Real Estate Conversation breaks down data from the Select Residential Property Research Group in Research reveals top ten suburbs primed for future capital growth.
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