ANZ Bank reported that Sydney home price growth has replaced Perth at the top of the table in their property market update:
Daily RP Data indices show home price gains eased in the past week with prices increasing in Sydney and Brisbane, unchanged in Melbourne and Perth and lower in Adelaide. However, home prices increased in the week in trend terms across all major capital cities, except Perth where prices were marginally lower.
In seasonally adjusted terms, the strongest weekly home price gains to 6 October were in Sydney (+0.9% w/w, +2.6% m/m), followed by Brisbane (+0.3% w/w, -0.3% m/m). Home prices were unchanged in the week in both Melbourne (+2.0% m/m) and Perth (-0.4% m/m) and were lower in Adelaide (-0.1% w/w, +0.6% m/m).
In the past year Sydney has posted the strongest trend price growth (up 8.5% y/y) with more modest gains in Perth (+7.5% y/y), Melbourne (+6.0% y/y), Brisbane (+1.5% y/y) and Adelaide (+0.7% y/y).
Auction demand and clearance rates remained very strong in both Sydney and Melbourne in the past week. Sydney’s auction marketcontinued to post the strongest clearance rate across capital cities (80% in the week ending 6 October), albeit on low auction numbers, while Melbourne’s clearance rate was also solid at 71%.
Of the other capital cities, Adelaide cleared 64% of auctions (on 62 reported auctions). In trend terms, auction clearance rates continued to show the strongest increases in Sydney, Melbourne and Adelaide. In contrast, trend clearance rates in Brisbane have increased only marginally and Perth clearance rates have fallen sharply in recent weeks.
Sydney’s auction market took a hiatus on the weekend (for the NRL Grand Final) with the number of sales in the week ending 6 October less than half the number in the previous week. In contrast, auction sales in Melbourne rebounded strongly following the AFL Grand Final weekend to record a solid 865 auctions (compared to a meagre 89 in the previous week).
Looking through the weekly volatility driven by the AFL and NRL Grand Finals over the past two weeks, strong trend clearance rates and home price gains are expected to support solid sales levels across Sydney and Melbourne in particular in the coming months.