The Australian Bureau of Statistics (ABS) released the September quarter Consumer Price Index (CPI) figures earlier this week. Over the quarter, headline CPI increased by 1.2% and underlying CPI increased by 0.6%.
Although the quarterly increase in CPI was quite strong, headline CPI has increased by 2.2% over the past year and underlying CPI is 2.3% higher. The 1.2% quarterly rise in CPI was largely driven by substantial increase in the transport (2.4%) and housing (2.0%) components of the index.
Over the past year, the largest increase in components of CPI have been recorded for: Education (5.6%), Health (4.1%), Housing (4.0%) and Alcohol and Tobacco (4.0%).
On the other hand, the Food and Non-Alcoholic Beverage component of CPI is -0.6% lower over the year and moderate growth has been recorded for: Furnishings, Household Equipment and Services (0.1%), Clothing and Footwear (0.6%) and Recreation and Culture (0.9%).
Looking specifically at the Housing component of CPI and the sub categories there are some clear trends evident. All sub categories rose over the quarter with the largest increases recorded for: Water and Sewerage (9.9%), Property rates and charges (7.9%), Utilities (5.7%) and Gas and other household fuels (4.8%). [sam id=34 codes=’true’]
On the other hand, quarterly increases have been quite moderate for: New dwelling purchase by owner occupiers (0.5%), Rents (0.6%), Maintenance and repair of the dwelling (0.9%) and Other housing (3.7%).
The Housing Industry Association (HIA) in conjunction with RP Data released the Quarterly Land Report for June 2013 earlier this week. The report showed that residential land sales increased by 18.2% over the June 2013 quarter which was the highest quarterly growth rate since March 2010 albeit the growth is occurring off a very low base.
Over the 2012/13 financial year there were 92,486 land sales which is -19.0% lower than the long-term annual average. The median value of residential land increased by just 1.7% over the 2012/13 financial year.
National Auction Clearance Rates
The number of auctions across the combined capital cities increased last week from 2,229 over the previous week to 2,370.
The auction clearance rate also fell over the week to 70.4% from 69.3% the previous week. In Melbourne, there were a total of 1,124 auctions over the week with the clearance rate falling from 74.0% the previous week to 68.6% last week.
Auction volumes across Sydney increased over the week from 884 the previous week to 913 last week, however, the clearance rate remained virtually unchanged, from 79.1% the previous week to 79.5% last week.There are currently 2,816 capital city auctions scheduled for the current week.
Weekly Advertised Listings
Over the four weeks to 20 October 2013, there were 47,840 newly advertised properties listed for sale nationally. The number of new property listings increased by 2.0% over the week and are 1.6% higher than at the same time last year. Across the combined capital cities, new listings were 2.9% higher over the week and are 5.2% higher than they were a year ago.
There are currently 262,114 properties listed for sale across the country. Total listings at a national level have increased by 1.0% over the week and they are -5.0% lower than they were at the same time last year.
Across the combined capital cities, total listings have increased by 1.3% over the week and they are -11.8% lower than they were at this time a year ago. Capital city listings account for around 44% of all listings nationally.
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