Investors take up first home buyer baton

Real estate agent activity has risen 17 per cent since June, making overall activity 31 per cent higher than this time last year, according to RP Data.

Auction clearance rates for Sydney and Melbourne have remained consistently high, with the steep rise suggesting potential buyers are taking advantage of the warmer weather to attend open houses and auctions on the weekend.

Clearances in Melbourne have hit the 80 per cent mark a number of times since June and Sydney clearances have been above 70 per cent for all but one week.

RP Data’s director of property research Tim Lawless says there are two main reasons for the high clearance rates: “Vendors have become more realistic in their reserve prices and competition is heating up amongst buyers,” he says.

And while competition has been largely driven by first home buyers up until now, there is mounting evidence to suggest investors are trickling back into the market, attracted by low interest rates, strong rental yields and an improvement in market confidence.

Figures from the Australia Bureau of Statistics (ABS) show that the level of first home buyer activity dropped from 27.1 per cent in June to 25.7 per cent in July. But it is still well above the long-term average of 20.1 per cent.

Investor housing commitments on the other hand experienced a 1 per cent increase in value terms, largely driven by improved consumer sentiment, which rose 5.2 per cent in August according to the Westpac-Melbourne Institute – the highest level in over two years.

Residential building approvals also rose last month, underlining the strengthening economy and a growing demand for property.

According to the ABS, seasonally adjusted building approvals rose 7.7 per cent in July off the back of a 9.9 per cent rise in June.

LATEST PRICES

DARWIN
Median house price: $493,377
Quarterly growth: 3.33%
Annual growth: 10.16%
Average annual growth: 15.64%
Median weekly rent: $606
Gross rental yield: 6.38%

Median unit price: $363, 055
Quarterly growth: 5.36%
Annual growth: 19.75%
Average annual growth: 16.95%
Median weekly rent: $427
Gross rental yield: 6.11%

PERTH
Median house price: $484.904
Quarterly growth: 0.30%
Annual growth: -1.54%
Average annual growth: 10.90%
Median weekly rent: $400
Gross rental yield: 4.29%

Median unit price: $458,321
Quarterly growth: -0.03%
Annual growth: -3.16%
Average annual growth: 11.99%
Median weekly rent: $427
Gross rental yield: 4.85%

ADELAIDE
Median house price: $413,330
Quarterly growth: 0.23%
Annual growth: -0.62%
Average annual growth: 7.55%
Median weekly rent: $342
Gross rental yield: 4.30%

Median unit price: $345,586
Quarterly growth: 1.20%
Annual growth: 2.58%
Average annual growth: 9.21%
Median weekly rent: $324
Gross rental yield: 4.88%

MELBOURNE
Median house price: $472, 815
Quarterly growth: 4.19%
Annual growth: 3.73%
Average annual growth: 5.72%
Median weekly rent: $369
Gross rental yield: 4.06%

Median unit price: $377,192
Quarterly growth: 2.07%
Annual growth: 5.39%
Average annual growth: 6.00%
Median weekly rent: $336
Gross rental yield: 4.64%

CANBERRA
Median house price: $496,994
Quarterly growth: 3.70%
Annual growth: 2.27%
Average annual growth: 6.62%
Median weekly rent: $495
Gross rental yield: 5.18%

Median unit price: $374,911
Quarterly growth: 1.83%
Annual growth: 2.60%
Average annual growth: 6.47%
Median weekly rent: $412
Gross rental yield: 5.71%

SYDNEY
Median house price: $589,731
Quarterly growth: 3.19%
Annual growth: 4.13%
Average annual growth: 2.43%
Median weekly rent: $490
Gross rental yield: 4.32%

Median unit price: $442,065
Quarterly growth: 0.67%
Annual growth: 5.85%
Average annual growth: 2.38%
Median weekly rent: $471
Gross rental yield: 5.54%

BRISBANE
Median house price: $450,406
Quarterly growth: -0.22%
Annual growth: -0.48%
Average annual growth: 10.23%
Median weekly rent: $392
Gross rental yield: 4.53%

Median unit price: $337,003
Quarterly growth: 2.03%
Annual growth:-0.43%
Average annual growth: 10.55%
Median weekly rent: $337
Gross rental yield: 5.20%

CONSTRUCTION DATA

TOTAL DWELLING UNITS APPROVED
July 09: 12, 048
Change from June 09: Increased by 7.7%
Change from July 08: Decreased by 3.9%

TOTAL PRIVATE SECTOR HOUSES APPROVED
July 09: 8,515
Change from June 09: Increased by 1.5%
Change from July 08: Increased by 4.7%

TOTAL PRIVATE SECTOR OTHER DWELLINGS APPROVED
July 09: 3,007
Change from June 09: Increased by 35.3%
Change from July 08: Decreased by 26.2%

RESIDENTIAL INDICTORS

LENDING FOR HOUSING – SEASONALLY ADJUSTED
July 09: $16.884 billion
Change from June 09: Decreased by 1.7%
Change from July 08: Increased by 26.11%

AVERAGE NEW OWNER OCCUPIER HOME LOAN
July 09: $266,900
Change from June 09: Increased by 0.9%
Change from July 08: Increased by 6.9%

FIXED-RATE LOANS AS PERCENTAGE OF OWNER OCCUPIER LOANS
July 09: 7.2%
Change from June 09: Down 0.8%
Change from July 08: Down by 1.6%

FIRST HOME BUYERS AS PERCENTAGE OF OWNER OCCUPIER FINANCE COMMITMENTS
July 09: 25.7%
Change from June 09: Down by 1.4%
Change from July 08: Up by 7.1%