Property market hits new heights

Real Estate

New heights reached as auctions fire

The property market is entering new territory as auctions in Melbourne hit their highest clearance rate this year with reserves smashed under fiercely competitive bidding. A renovator’s delight in one of Melbourne best suburbs, Albert Park sold for over $4.2 million, $1.7 million over its reserve. Canberra buyers were also out in force, there were more than seven homes that sold for over $1 million in the nation’s capital. And the Sydney auction clearance rate of 89.7 per cent was up from 71.4 per cent a year ago and pushed the combined capital city clearance to 79 per cent, the highest in 6 years. 
Real Estate figures
Taking a look at real estate economic news: The ABS says that dwelling approvals jumped further 2.8 per cent in March bringing the yearly rise to 24 per cent. Apartment developments are still the main driver up 5.3 per cent in March and 59 per cent over the year. In comparison, detached house approvals are up 1.1 per cent in March and 1.6 per cent in the 12 month period. 
According to the ABS,  in March, Tasmania lead the way in seasonally adjusted new dwelling approvals up 42.3%, South Australia was next with 35.2 per cent followed by Western Australia with 18.9 per cent. Declines were recorded in Victoria, NSW and both Territories. 
The Housing Industry Association says the activity has propelled dwelling approvals to un-precendented levels.  FNN spoke to Shane Garrett, Economist at the Housing Industry Association about the latest figures. 
‘Approvals reached their highest ever levels in March. During the month we got about 19,500 approvals for new homes in Australia. That’s a record high and it brings to 210,000 the total number of new dwelling approvals in the year to March. Now this is a bit of a mixed story because it’s mostly unit approvals, kind of high density stuff as in 3 or 4 or more stories driving the bulk of the growth over the past year. The detached house dwelling activity has been much more stable and much more flat over the same period”. 
That was Shane Garrett from HIA. 
Australian auction results
Looking at this week’s auction results across Australian capital cities - Sydney recorded an 89 per cent clearance rate from 699 properties for auction, Melbourne cleared 82 per cent from 987 properties, Brisbane had a 41 per cent clearance rate from 122 properties listed and Adelaide cleared 72 per cent from 101 listed auctions. 
Commercial property sector
Stockland (ASX:AGP) has reported a strong third quarter on higher retail sales and growth in its speciality business. 
Mirvac Group (ASX:MGR) says it is on track to reach its operating earnings and distribution guidance over the full 2015 financial year. Being overweight in the Sydney and Melbourne markets mean high levels of pre-sales.  
Novion Property Group’s (ASX:NVN) fund NERF has bought the Lidcombe Shopping Centre in NSW for $60 million. 
And Mantra Group Limited (ASX:MTR) have beaten strong competition to win the Soul Surfers Paradise tower and are raising their full year guidance.