Spring Selling Season
Spring is traditionally a busy time of year in Australian real estate and as the seasons change, the property markets become hotly anticipated. In the lead up to the 2015 spring selling season, there’s been a lot of speculation around how capital cities will perform and as usual Sydney is front and centre in the discussion.
The first week in spring brought mixed messages to our largest city. Whilst Sydney’s auction clearance rate was the second lowest on record for the year, the number of new listings lifted 16 per cent - signalling vendor confidence - and experts are still predicting price growth during spring. As the Melbourne market headed into spring, new listings rose 10 per cent in August compared to the same time last year. Brian White, chairman of the Ray White Group, told The Australian newspaper that both Sydney and Melbourne will be tested in September.
“The big test of the spring market will be so called Super Saturday — September 26 — ahead of football finals in Sydney and Melbourne,” he said. Heading north to Queensland, the state saw promising results to kick off the spring market from the Gold Coast to Brisbane and as far north as Townsville. Many real estate agents are predicting a wave of sellers who have waited until spring to come to market In Adelaide, whilst there were less auctions scheduled for the first weekend of spring, results showed promise.
Of 50 reported results from Corelogic RP Data, 37 properties either sold under the hammer or prior to auction. Canberra - according to Domain research - is set for a strong spring. An indicator was the auction clearance rate in August rising from 59.6 per cent in 2014 to 71.2 per cent this year. The median house price for Canberra also jumped to $690,500 compared to $607,000 in August last year. Perth, Hobart and Darwin all tell a different story with tougher property markets. Perth and Darwin have felt the impact of the downturn in mining and house prices have fallen over the past year.
Many predict the spring season won’t bring pricing improvements to the regions. Interestingly, as Darwin prices continue to fall, the city continues to have strong rental yields of around 5.5 per cent for both houses and units, In Hobart, supply is still outstripping buyer demand although, while the city has a lower median house price, it also has a stronger rental yield of around 5.2 per cent for houses and 5.5 per cent for units.