Greetings from Scoutable and welcome to our August Wrap Up.
August saw 2,274 properties scheduled for auction across Sydney, with an average clearance rate of 80%. This is up 23% from last year's August average of 57% (2,204 properties).
Melbourne saw 3,032 properties scheduled, with an average clearance rate of 76%, up 18% from last year's 58% average (3,104 properties).
Brisbane saw 487 properties scheduled for auction, with an average clearance rate of 51%, up 6% from last year's 45% average (411 properties).
Each month, CoreLogic releases data on the Australian property market. The August 2019 report states that the property market is recovering with values on the rise. Sydney, and Melbourne have shown an increase in property values for the last three months, and Brisbane for the last two. Despite the increases however, Sydney is still down 13.3% from the peak (mid 2017), Melbourne is down 9.5% and Brisbane is down 2.5%. CoreLogic reports that whilst the Sydney and Melbourne markets are showing strong signs of recovery it will take some time for prices in these cities to return to previous highs.
Last week I attended the Australian Property Institute’s annual conference. The keynote speaker was Bill Evans, Chief Economist for Westpac. Mr Evans commented that the three big shifts to the residential property market are:
Reserve Bank of Australia (RBA) 50 basis point (bp) rate cut with a further 25bps cut expected by October
Australian Prudential Regulation Authority (APRA) review of the mortgage serviceability assessment guideline
The federal election results: negative gearing and capital gains tax changes are off the table and we're less likely to see a ‘heavy handed’ approach to banking regulations.
Mr Evans discussed the property market showing signs of improving, even though the general world economy isn’t performing well. Mr Evans summarised the following:-
RBA to cut the cash rate to 0.75% in October and 0.5% in February 2020
Bond rates to remain low, resulting in all property yields (returns) looking very attractive
U.S. Federal Reserve to cut rates in the next three meetings as more is needed to hold bond rates
RBA’s rate cuts factors include a downbeat on the labour market and wages; and inflation needs a 50bp cut
Housing market to be choppy through to 2020; factors affecting the market include credit and affordability
Australian retail sector now in recession as consumers are cautious and saving instead of spending
Dwelling construction contraction to continue through 2019 and 2020
Economic growth outlook in 2020 exposed to global risks (America and China)
Global outlook very disturbing – downside risks are abundant
Interestingly, the inner city suburbs of Sydney and Melbourne are not showing signs of this poor economic outlook. I believe the main drivers to this are the lack of stock and the local confidence of buyers. The spring season should bring more stock to the market which should help bring some equilibrium to supply and demand.
If you are thinking of buying or investing in Australian property, get in touch to learn about Scoutable's services and how we can assist with your property search.
Until next month,
Kellie Landrey | Principal Buyers Agent
IN THE NEWS
HOUSING PRICE SURGE IN SYDNEY AND MELBOURNE
https://www.abc.net.au/news/2019-09-02/house-prices-surge-in-sydney-and-melbourne/11469744?section=business
BUYING IN SISTER SUBURBS COULD SAVE YOU THOUSANDS
https://www.realestate.com.au/news/could-buying-in-a-sister-suburb-save-you-thousands/
LENDLEASE WINS $644M WESTERN SYDNEY AIRPORT PROJECT
https://www.commercialrealestate.com.au/news/lendlease-wins-644m-western-sydney-airport-project-875855/
PROPERTY OF THE MONTH
1/1 QUAMBI PLACE, EDGECLIFF
Residence One at 1 Quambi Place Edgecliff is a beautiful Georgian style apartment requiring a complete renovation. A little imagination can see the grand old girl be brought back to life. There are many original features still in place, including stunning floorboards and fire places. The property is strata titled and within a complex of two - one apartment per floor. The subject apartment accommodates over 200sqm of internal space providing four bedrooms, two bathrooms, kitchen, dining, living room and sunroom. The kitchen and bathrooms have been gutted. The grounds provide overgrown gardens surrounding the building and a single garage.
Edgecliff is located four kilometres east of Sydney’s CBD, which is accessed easily via train, bus or a 45 minute walk. Edgecliff Centre provides retail amenities, and the Woollahra retail strip and Double Bay’s entertainment and retail hub are a short distance away.
The buyer’s price guide was originally $2,700,000 but has now been increased to $3,100,000.
If you'd like to know more about this property or any others, please get in touch.
