PROPERTY MARKET WRAP 23rd July 2010 - SPECIALISED PROPERTY GROUP
Industry Market Wrap
The Housing Industry Association (HIA) in conjunction with RP Data released the Residential Land Report for the March 2010 quarter this week. The report findings show that nationally the volume of residential land sales has eased, down 40% compared to the first quarter in 2009. Adelaide is the only capital city market which has recorded an increase in the volume of sales during the March 2010 quarter when compared to the same quarter last year. Although the volume of land sales has been softening, the national median land value has remained virtually unchanged at $184,574 and on an annual basis values have increased by 6.9%. Across the capital cities, median land values recorded strong increases over the March 2010 quarter in Sydney (8.9%), Perth (6.4%), and Melbourne (4.1%). Median values were flat during quarter in both Brisbane and Adelaide, while values in Hobart fell by 13.8%.
The Reserve Bank of Australia (RBA) released the minutes of their July Board meeting this week. Specifically relating to the residential property market the minutes noted, “There were some signs that conditions in the established housing market had eased. In particular, auction clearance rates in Sydney and Melbourne had declined from their earlier elevated levels, with the clearance rate in Melbourne in June back to around average levels. Price data to May were mixed but provided some tentative evidence of a deceleration in growth relative to earlier in the year. Members noted that price growth had been very strong in Melbourne. Housing credit growth in May had remained at around the average pace of the preceding year.”
The number of new residential property advertisements recorded a large increase last week recording a jump of 9.5% compared to the previous week. The total number of new advertisements were also well above (12.1%) the 12 month average level. Despite the large increase in new listings, total advertisements eased slightly during last week. Although total advertisements have softened, they remain well above 12 month average levels at a time when the residential property market is slowing.