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The Rpdata.com Market Activity Index has recorded a rebound this week with the Index sitting at its highest level since the middle of March. The results shows that pre-listing activity remains at very high levels and provides an indication that the number of new properties coming to market is likely to be higher over the next month.
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| The RP Data-Rismark Home Value Index released this week showed that capital city home values increased by just 0.2% during April 2010 after recording growth of 1.3% in March. For houses outside of the capital cities, values fell by -0.2% over the month. Despite the softening growth rates, capital city property values have increased by 11.9% over the last 12 months whilst those areas outside of capital cities have recorded rates of growth less than half this, at 5.6% over the year.
No doubt these latest results showing a slowdown in the rate of property value growth along with weakening housing finance data, a significant fall in consumer sentiment, easing auction clearance rates and a run of interest rate hikes, has weighed heavily on the decision by the Reserve Bank to keep interest rates on hold this month. The results certainly seem to show that the rate hikes to-date have had the desired effect of slowing the rate of growth in residential property however, evidence suggests that these hikes are now stifling new construction.
Dwelling approvals data released this week showed a significant fall, with approvals for private homes falling by -13.5% during April 2010. This was the biggest monthly fall since July 2000. Total dwelling approvals fell by -14.8%, their greatest monthly fall since November 2002. Meanwhile, private unit approvals were down -5.4% for the month.
Advertised Stock on the Market
 The volume of new properties entering the market and the total number of properties available for sale are both sitting at levels well above 12 month averages with new listings 12.5% above average and total listings 4.1% above average.
Latest National Auction Clearance Rates
 Auction clearance rates continued to ease again last week with the weighted average auction clearance rate recorded at 62.7% and represents the fourth week in a row where weighted average clearance rates sat below 70%. Melbourne’s auction clearance fell further last week to 68.8%. Sydney’s auction clearance rates also fell further during the week and are now recorded at 62.1%
Want to know the auction results for your local area? Log into rpdata.com and go the Auction Results panel on the top right corner of the home page.
Number of Properties Advertised for Rent
 Across the nation the total number of new rental listings has jumped from 24,708 last week to 26,906 this week. As a result, total listings have also increased from 53,333 last week to 55,517 this week.
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| With the premium residential market recording the highest capital gains over the last 12 months, the number of suburbs with a median price of at least $1 million have become more common.
Over the 12 months to February 2010 there were 165 suburbs nationwide that recorded a median price of at least $1 million for either houses or units. In comparison, during the previous 12 months there were 147 suburbs nationally with a median price of at least $1 million, indicating that the number of $1 million suburbs has increased by 12% over the last year. Despite the jump in $million suburbs, there are still fewer than what was recorded pre-GFC.
Interestingly, during the year to February 2008, Western Australia had 36 suburbs with a median price of more than $1 million. As at February 2010 there were 26 suburbs with a median of at least $1 million, 10 fewer than that recorded at the peak. The total number of $1 million suburbs remains below the Feb-08 peak also in New South Wales, Queensland and the Australian Capital Territory but in each instance it is only one suburb fewer than the peak.
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Commercial: Tenant upgrades to owner-occupier
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|  Two adjoining industrial properties in South Melbourne have been sold at auction by agents of Lemon Baxter to one of their tenants.
The separately-titled premises at 136 and 142 Montague Street South Melbourne are leased until September 2010.
Lemon Baxter selling agent, Richard Curtain, marketed the Industrial 1-zoned properties, which were sold together at auction for $1.65 million.
The two properties have a combined frontage of 21 metres to Montague Street, combined site area of 395 sqm and combined building area of 495 sqm.
Number 136 Montague Street is a single level industrial building of 200 sqm while Number 142 Montague Street has an area of 276 sqm including 76 sqm on the first level.
Mr Curtain said he had anticipated that the buildings would suit an owner occupier with the potential to occupy one or lease the other, or for a developer to redevelop the older-style buildings.
“The purchaser in this instance was one of the present tenants Theo’s Meat Supply,” said Mr Curtain.
“Both buildings have concrete floors each with roller door access and the steel deck roof over each property has also been replaced recently.” |
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Blog: The inflation wildcard
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| Interest rates may be on hold, but any rise in the June quarter inflation figures is likely to see another rate hike.
This month the Reserve Bank (RBA) thankfully decided to keep interest rates on hold, and the wide spread speculation is that the cash rate will remain on hold until early next year. Australia’s average standard variable mortgage rate is sitting at 7.4% – just slightly higher than the ten year average (7.24%).
In a statement from RBA Governor Glen Stevens, the Bank cited concerns about the effect of deteriorating health in the European economies and financial markets on the global economy. In balance, the Governor also highlighted that prices for Australian commodities remained high and global growth is likely to track at trend levels. |
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