Property price growth shows first sign of cooling Interest rates have been kept on hold for another month but talk of tightening lending practices continues with an announcement from the RBA expected by the end of the year. The market is showing the first signs that growth is moderating, home prices may be easing slightly but there are still plenty of signs of strength with building approvals at a record high and new home sales spiking higher in August.
Property reports roll in The RP Data Core Logic index of Home Values showed capital gains in the combined capital cities lifted just 0.1 per cent in September. Growth in Sydney, Brisbane and Adelaide was offset by falls in all the other capital cities. However across the board growth for the September quarter was up by 2.9 per cent.
The ABS says dwelling approvals in August rose again, up 3 per cent to the highest levels on record for residential properties. Combined approvals for new home construction are up 14.5 per cent for the year with the stand out result coming from Victoria where approvals are up 15.5 per cent in August for a 32.5 per cent increase so far this year.
And HIA says new home sales showed a surprising 3.3 per cent lift in August bouncing back from a fall of 5.7 per cent in July. The figures are still down from a peak in April but approvals for multi-units are proving a strong driver now up nearly 20 per cent for August with detached house sales up just 0.5 per cent.
Has the property market peaked? FNN spoke to Tim Lawless, Head of Research at RP Data :
“Well I think we saw the peak in growth earlier this year, our rolling annual change peaked in April 2014 and we’ve been seeing value growth consistently moderating since that time. But in saying that, generally a peak in the market means values are now going backwards and that’s certainly not the case.” Australian auction results Looking at this week’s auction results across Australian capital cities keeping in mind there was a long weekend in Queensland, New South Wales and South Australia - Sydney recorded an 83 per cent clearance rate from 253 properties for auction on the holiday weekend, Melbourne cleared 76 per cent from 743 properties, Brisbane had a 41 per cent clearance rate from 72 properties listed and Adelaide cleared 57 per cent from 27 listed auctions.
Commercial property sector Lend Lease Group’s
(ASX:LLC) latest off-the-plan apartments launch ‘The Yards’ in Brisbane set a local selling record after 160 of the ‘Ekka’ apartments on Brisbane Showgrounds sold in just four hours.
Sunland Group Limited
(ASX:SDG) has snapped up the last major Greenfield development site on the Gold Coast for $61 million to create a master planned community.
Folkestone
(ASX:FLK) has entered a 50:50 joint venture with Wilmac Properties to develop Stage 2 of its Millers Junction Project in Victoria.
Growthpoint Properties Australia Limited
(ASX:GOZ) has entered into an agreement to sell an industrial property in Victoria for $19 million. ARB Corporation Limited
(ASX:ARB) will purchase the property which it is currently leasing for its head office.
