We just experienced another strong week in property with RPData’s home price index up over the week.
Also while Melbourne’s auction market paused for the AFL grand final, Sydney auction results went gangbusters.
ANZ Bank reported the following property market update:
Firstly the auction result:
Auction demand and clearance rates remained extremely strong in both Sydney and Melbourne in the past week, albeit on very very low auction sales in Melbourne (impacted by the AFL Grand Final weekend). Sydney’s auction market continues to post strong clearance rates (81% in the week ending 29 September) while Melbourne’s clearance rate was also solid at 84%. Of the other capital cities, auction clearances in Adelaide remained strong, with 81% of auctions cleared (on 55 reported auctions). In trend terms, auction clearance rates continued to increase in both Sydney and Melbourne (around 81% and 76% respectively) while Adelaide’s auction clearance rate has increased sharply in recent weeks to 68%. In contrast, trend clearance rates in Brisbane have increased marginally and Perth clearance rates have remained largely unchanged in recent months.
Sydney had the strongest week of auction sales in the last 6 months in the week ending 29 September, with 872 auctions conducted (compared to 766 in the previous week). A further 170 auctions were conducted in Brisbane, while auction sales in Melbourne were temporarily low (89 auctions) as the city’s auction market stalled for the AFL Grand Final. Looking through the weekly volatility, strong trend clearance rates and home price gains are expected to support solid sales levels across Melbourne and Sydney in the coming months.
Daily RP Data home price indices:
These show home prices posted solid weekly gains in the past week.
Home prices increased in trend terms across all major capital cities, except Perth where prices are unchanged in trend weekly terms, following price falls in original terms in recent weeks.
In seasonally adjusted terms, the strongest monthly home price gains to 30 September were in Sydney and Melbourne (+2.4% m/m and 2.5% m/m respectively), followed by Adelaide (+0.7% m/m). In contrast, home prices were lower in both Brisbane (-0.6% m/m) and Perth (-0.1% m/m). In the past year, Perth and Sydney have posted the strongest trend price growth (up 8.0% y/y and 7.8% y/y respectively), with more modest gains in Melbourne (+5.4% y/y), Brisbane (+1.5% y/y) and Adelaide (+0.5% y/y).