PROPERTY -- Residential wrap |
| Friday, 29 January 2010 |
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Property market activity remains strong heading into 2010 despite rising interest rates and the end of the FHOG boost, writes The Adviser's Belinda Luc.
Despite three interest rate rises in as many months and the likelihood of more to come in the New Year, homebuyers are still out in force. The latest figures from Australian Property Monitors (APM) have revealed that auction clearance rates in both Sydney and Melbourne remain steady at above 70 per cent, while the number of properties listed for sale is rising week on week. Souring predictions of a slowdown in activity following the end of the first home owner’s grant boost, APM economist Matthew Bell says interest rates will have to rise by another 100 basis points before the market feels any impact. “I think people overestimated the effect of the first home bonus slackening off and underestimated how many investors and upgraders were quietly waiting in the wings,” Mr Bell says. PRDnationwide research predicts that investor finance commitments will increase to around 30 per cent of total finance commitments in 2010. Research director Aaron Maskrey says the market will continue to attract investors in 2010 as rents continue to rise and the number of first home buyers declines. “We have already seen increasing levels of investor activity in most of the inner city suburbs across Australia, and as that trend continues we can expect prices to follow suit,” says Mr Maskrey. The statistics are already bearing this out. According to a recent Mortgage Choice real estate market facts report, the median house price in Australia jumped by $20,000 in the September quarter, from $462,180 to $481,310 – the highest level since 2007. Darwin and Sydney recorded the highest median house prices at $607,200 and $569,000 respectively.
Prices and indicators (Latest figures)
SYDNEY Median house price: $621,248 Quarterly growth: 3.38% Annual growth: 9.87% Average annual growth: 2.39% Median weekly rent: $496 Gross rental yield: 4.16% Median unit price: $466,328 Quarterly growth: 2.75% Annual growth: 9.81% Average annual growth: 2.70% Median weekly rent: $462 Gross rental yield: 5.15%
MELBOURNE Median house price: $517,667 Quarterly growth: 4.29% Annual growth: 13.70% Average annual growth: 7.05% Median weekly rent: $341 Gross rental yield: 3.42%
Median unit price: $419,519 Quarterly growth: 5.21% Annual growth: 16.09% Average annual growth: 6.94% Median weekly rent: $340 Gross rental yield: 4.21%
BRISBANE Median house price: $472,811 Quarterly growth: 1.40% Annual growth: 5.63% Average annual growth: 9.58% Median weekly rent: $381 Gross rental yield: 4.19% Median unit price: $361,927 Quarterly growth: 3.52% Annual growth: 9.65% Average annual growth: 10.78% Median weekly rent: $340 Gross rental yield: 4.88%
ADELAIDE Median house price: $434,655 Quarterly growth: 1.42% Annual growth: 5.73% Average annual growth: 8.57% Median weekly rent: $343 Gross rental yield: 4.10% Median unit price: $364,409 Quarterly growth: 3.13% Annual growth: 5.71% Average annual growth: 11.69% Median weekly rent: $321 Gross rental yield: 4.58%
PERTH Median house price: $505,897 Quarterly growth: 0.51% Annual growth: 5.09% Average annual growth: 11.15% Median weekly rent: $402 Gross rental yield: 4.13% Median unit price: $479,102 Quarterly growth: -1.02% Annual growth: 8.11% Average annual growth: 12.54% Median weekly rent: $390 Gross rental yield: 4.23%
DARWIN Median house price: $537,924 Quarterly growth: 5.11% Annual growth: 17.35% Average annual growth: 16.27% Median weekly rent: $545 Gross rental yield: 5.27% Median unit price: $406,245 Quarterly growth: 8.41% Annual growth: 32.92% Average annual growth: 16.97% Median weekly rent: $457 Gross rental yield: 5.85%
CANBERRA Median house price: $533,202 Quarterly growth: 4.75% Annual growth: 10.58% Average annual growth: 6.83% Median weekly rent: $477 Gross rental yield: 4.65% Median unit price: $413,209 Quarterly growth: 2.53% Annual growth: 13.71% Average annual growth: 7.44% Median weekly rent: $461 Gross rental yield: 5.80% Source: RP Data
Mortgage indicators
LENDING FOR HOUSING – SEASONALLY ADJUSTED November 09: $16.537 billion Change from October 09: Decreased by 2.9% Change from November 08: Increased by 32.72%
AVERAGE NEW OWNER OCCUPIER HOME LOAN November 09: $279,900 Change from October 09: Increased by 2.9% Change from November 08: Increased by 10.2%
FIXED-RATE LOANS AS PERCENTAGE OF OWNER OCCUPIER LOANS November 09: 3.4% Change from October 09: Down by 1.3% Change from November 08: Up by 0.9%
FIRST HOME BUYERS AS PERCENTAGE OF OWNER OCCUPIER FINANCE COMMITMENTS November 09: 22.1% Change from October 09: Down by 3.9% Change from November 08: Down by 1.5% Source: ABS
Building Approvals
TOTAL DWELLING UNITS APPROVED November 09: 13,724 Change from October 09: Increased by 5.9% Change from November 08: Increased by 33.3%
TOTAL PRIVATE SECTOR HOUSES APPROVED November 09: 9,386 Change from October 09: Decreased by 1.9% Change from November 08: Increased by 32.8%
TOTAL PRIVATE SECTOR OTHER DWELLINGS APPROVED November 09: 3,404 Change from October 09: Increased by 27.5% Change from November 08: Decreased by 17.3% Source: ABS
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