Greetings from Scoutable and welcome to our August Wrap Up. Who's excited about spring?!
August saw 2,204 properties scheduled for auction across Sydney, with an average clearance rate of 57%. Melbourne saw 3,104 properties scheduled, with an average clearance rate of 58%. Brisbane saw 411 properties scheduled for auction with an average clearance rate of 45%. In comparison, August last year had an average clearance rate of 70% (3,419 properties), 75% (4,212 properties), & 44% (1,059 properties) respectively.
The above data is showing a drop in clearance rates of 13% in Sydney and 17% in Melbourne, while Brisbane is up 1%, for the August year on year comparison. Across the three cities, there has been a significant drop in the number of properties scheduled for auction. However, stock levels are up from last month and it will be interesting to see if clearance rates follow suit as we head into the spring market.
Australian house prices have remained relatively flat this year and we have not seen the massive crash as predicted by some. It would seem the double-digit growth of previous years is firmly off the table. However, senior ANZ economists, Daniel Gradwell and Joanne Masters, are predicting property prices to rise in 2019.
ANZ has forecast a total growth of 1.8% for Australian property for 2018, rising to 3.6% for 2019. “We think most of the slowdown has already occurred”. “We retain our view that prices will not materially decline". “Over the near term, auction results in Sydney and Melbourne suggest that the majority of the price growth adjustment is behind us.” Having initially predicted two RBA rate rises for 2018, the economists have pushed back their prediction to mid 2019 and suggest that this, combined with a strong labour market and rising incomes, will drive price growth.
Please see graph below: -
The graph is predicting Melbourne to outperform Sydney, with Brisbane not far behind. Hobart looks strong and it's great to see expectations for both Perth and Darwin back in positive territory for 2019.
Whilst it would seem the RBA might not be making any movement with the official cash rate till next year, yesterday Westpac announced that they are increasing their interest rates by 0.19% effective September 19. It remains to be seen if the other major banks will follow suit. Even with households building a buffer in savings, movements in interest rates result in higher household debt which can have a negative impact on the property market. It will be interesting to note the effects of interest rate movements by the banks on the ANZ predictions over the coming months.
If you're thinking of buying or investing in Australian property, get in touch to learn about Scoutable services and how we can assist with your property search.
Till next month,
Kellie Landrey | Principal Buyers Agent
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PROPERTY OF THE MONTH
316 EDGECLIFF ROAD WOOLLAHRA
Woollahra is an Aboriginal word meaning camp, meeting ground or a sitting down place. It's one of Sydney's more affluent suburbs with many heritage-listed sites, boutique shops, cafes, restaurants, and along with neighbouring Paddington, has the highest concentration of art galleries in Sydney.
Set on a generous 340sqm of elevated land, and commanding northerly district views, 316 Edgecliff Road is conveniently located 750m from Bondi Junction Railway Station, 4km from the CBD and a short walk to local retail facilities.
A four bedroom, three bathroom, freestanding home bursting with Victorian grandeur and charm, paired with the luxury of modern conveniences. All that should be cherished, has been, with well thought out additions. The layout comprises, ground floor formal living / dining, fourth king size bedroom, eat-in kitchen and powder room. The first floor provides accommodation for three more king size bedrooms, including the master bedroom with double walk in wardrobes and ensuite, and family bathroom. The property provides a front and rear garden, heated swimming pool and parking for two cars.
The price guide is $5,000,000.
If you'd like to know more about this property or any others, please get in touch.