Although the RP Data Market Activity Index has again eased during the most recent week it remains at levels well above the historic average. The Index currently sits 35% higher than it did during the corresponding week last year. It is anticipated that such a high level of Market Activity will continue to translate into an above average level of new listings during the coming weeks.
Industry Market Wrap
Dwelling commencements data released by the Australian Bureau of Statistics (ABS) this week for the December 2009 quarter showed an encouraging rebound in commencement numbers. When comparing the number of dwelling commencements during the December 2009 quarter to the December 2008 quarter all states and territories except South Australia and the Northern Territory have recorded an increase in the number of dwelling commencements. Nationally, commencements during the December 2009 quarter were 26% higher than the corresponding quarter during the previous year. Digging a little deeper, on a seasonally adjusted basis there were 97,542 commencements for houses during 2009 and 33,215 commencements for units. Whilst there was an upswing during the last two quarters, it was the lowest number of annual commencements for houses since 2001 and the fewest unit commencements since 1996. Whilst the recovery is very positive, recent falls in dwelling approvals and housing finance for the construction and purchase of new homes suggests that a sustained recovery is delicately balanced at this stage.
Advertised Stock on the Market We continue to witness an above average level of new property listings entering the market. The number of new listings eased very slightly during the most recent week, however, the volume was still above that recorded 12 months ago. Despite the fact that the volume of new listings have fallen slightly, total listings have actually increased during the week, perhaps suggesting that the level of buyer activity in the market is showing the first signs of easing. However, total listings remain -7% lower than at the same time last year.
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Latest National Auction Clearance Rates The number of capital city auctions this week increased dramatically following a long weekend in Victoria and South Australia the previous week. There was well over 1,600 capital city auctions nationally during the most recent week. Nationally, the weighted average clearance rate increased slightly to 72%. The nation’s largest auction market, Melbourne, recorded a healthy clearance rate of 81.7%. Sydney's clearance rate eased during the week to 68.9%.
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Number of Properties Advertised for Rent The volume of new rental listings advertised has eased for the fourth consecutive week now and now sit -26% lower than they were at the same time last month. The total number of listings has increased slightly during the most recent week however, volumes are 7% lower than those recorded a month ago.
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Following on from the best performing suburbs this week’s Property Pulse takes a look at the best performing council areas during the last ten years.
As we pointed out in a recent Property Pulse across Australia, capital city property values have grown by 9.9% for houses and 8.1% for units during the ‘noughties’ decade. Certain council areas have well and truly outperformed the nation during this period.
The best performing council area during the last decade was Isaac where median house prices recorded average annual growth of 43.1%. Importantly, house prices came from an extremely low base a decade ago of just $10,901. Isaac itself is a mining region within Queensland’s Bowen Basin which includes well known mining towns such as Dysart and Moranbah.
Blog: Buoyant confidence amongst business and consumers likely to support high numbers of housing transactions
New figures released by Westpac and the Australian Chamber of Commerce and Industry show that economic conditions have continued to exceed expectations during 2010. The Survey of Industrial Trends (click here to see media release) increased by 6.3 points over the March quarter to reach its highest point in more than two years.
When viewed in line with other measures of confidence (business confidence in the December quarter was at a 15 year high and consumer confidence also remains at historically high levels) I think we can safely say both the business and consumer mind set is fairly optimistic.
The home of the largest and longest running bath house and gymnasium in the Melbourne CBD has been sold to a church.
The two and three-storey Victorian buildings at 279-285 LaTrobe Street, Melbourne, were formerly occupied by Steamworks.
Raine & Horne Commercial agent, Glyn Bosisto, negotiated the $6.375 million sale to a private investor on behalf of Melbourne’s Coptic City Church.
After a major redevelopment of the upper floors the Church intends to relocate to the more central Latrobe Street premises from its existing home on Bouverie Street, Carlton.
The 1578 sqm of space in the buildings on the 651 sqm site is split between two ground floor retail areas totalling 650 sqm, currently leased on a long term basis to an internet and video library and Italian Café, and the 927 sqm gymnasium on the first floor.
Current passing income for the ground floor retail tenancies is $180,286 per annum net and the Steamworks gym and sauna areas are now vacant.
After operating Steamworks for 30 years and considering an upgrade of the existing bath house or a major redevelopment of the entire site, the owners finally elected to sell in late 2009 via an expression of interest campaign.
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