Housing surges ahead
The February interest rate cut has already resulted in high auction clearance rates with both Sydney and Melbourne posting clearance rates of over 80 per cent. Data is also showing valuations of property reaching record highs in some cities as the consistently rising housing market continues to outperform falling wage growth and capital expenditure figures.
Real Estate figures
At its March meeting the RBA decided against changing the key interest rate of 2.25 per cent. Economists had hoped the Reserve Bank would drop rates a second time this year in response to subdued business investment and rising unemployment. However the central bank noted that there was stronger growth in lending to housing investors and that dwelling prices continue to rise strongly in Sydney.
In fact, Sydney is by far leading the way in house prices. Research from Corelogic RP Data shows Sydney house prices were up 1.4 per cent in February, widening the gap between Sydney and other capital cities. Melbourne prices were flat for the month whilst home values in Brisbane, Perth, and Hobart dipped slightly.
Meanwhile the HIA New Home Sales Report shows that seasonally adjusted new home sales were up 1.8 per cent in January. The headline figure does mask large differences between the states and territories and between the sales of detached houses and multi unit sales. Detached houses have peaked in NSW and WA with national numbers for detached house sales flat-lining with a 0.1 per cent rise. In comparison, multi-unit sales were up by 9.9 per cent across the country.
Australian auction results
Looking at this week’s auction results across Australian capital cities - Sydney recorded a 86 per cent clearance rate from 830 properties for auction, Melbourne cleared 80 per cent from 1344 properties, Brisbane had a 61 per cent clearance rate from 147 properties listed and Adelaide cleared 64 per cent from 72 listed auctions.
Commercial property sector
Ingenia Communities Group (ASX:INA)
said today it has agreed to purchase the Chambers Pines Lifestyle Resort in Logan,Queensland for $17.6 million.
Property developer Mirvac Group (ASX:MGR)
has broken ground on Ebsworth, its flagship 10 storey residential building in the Green Square development just south of the Sydney CBD.
Cedar Woods Properties Limited (ASX:CWP)
says the Brisbane City Council will review the development approval of its $900 Upper Kendron mega suburb located near The Gap.
And Stockland (ASX:SGP)
has purchased the Point Cook development southwest of Melbourne from Sunland Group for $66.2 million.