Melbourne has finished September as the best performing with an increase of +5.0% and the lowest renal yielding market for houses, averaging 2.8%.
Melbourne property market, recorded a 1.0% month-on-month gain, taking capital city dwelling values 41.3% higher since the growth cycle commenced in June 2012.
The top performing market was Melbourne where dwelling values pushed 5.0% higher over the third calendar quarter, due largely to a strong rise in house values (+5.2%) which balanced a softer result for the unit market (+2.9%).
Melbourne clearance rates have consistently been above 75%, albeit on substantially lower volumes than a year ago.
The top three auction markets for spring activity have been: Inner Melbourne (780 auctions over the four weeks of September with a clearance rate of 75%), Melbourne’s Inner South (560 auctions with a clearance rate of 82%) and North Sydney/Hornsby (545 auctions with a clearance rate of 85%).
The most successful auction markets have been Sydney’s Eastern Suburbs where 89% of auctions were successful during September, Melbourne’s Mornington Peninsula (88% of auctions cleared) and Sydney’s Ryde (87% of auctions cleared).
The housing market has clearly been a substantial source of wealth creation for many Australians, particularly for home owners in Sydney and Melbourne.
Since the end of 2008, Sydney dwelling values increased by almost 95% and Melbourne dwelling values are up 80%.
By a large margin, the lowest yields are now in Sydney and Melbourne where value growth has been the most extreme and caused yields to compress.
The typical gross yield on a Sydney and Melbourne house is now 2.8%.