Property tide turns towards buyers

Real Estate

The Sydney property market continues to slide as auction rates plummet in southern and western Sydney. The number of homes on offer is increasing however the introduction of investor lending restrictions is starting to impact on the property market with fewer homes now being sold under the hammer. Melbourne has also recorded two weekends of clearance rates lower than the same time last year. It all adds up to good news for buyers as supply starts to catch up with demand and the market cools off.  
Real estate economic news
The ACI Construction Monitor shows there is a strong pipeline of work taking place in the non-residential construction industry. The most prevalent work is within the aged care sector and religious institutions. New South Wales, Victoria, Tasmania and the Northern Territory are seeing increases in construction activity. Easing construction work within the mining industry has lead levels lower in Queensland and Western Australia with South Australia and the ACT also recording falling levels. 
Research from CoreLogic RP Data shows that weekly rents are on their way down as slower migration rates impact on the rental market while more investors entering the market have added to the rental stock available. Weekly rents dropped by 0.4 per cent during August reversing some of the gains made over the past 12 months. The most significant drop was in Darwin down 10.5 per cent in the past 12 months. Perth rents were down by 5.7 per cent, in Adelaide rents dipped 0.2 per cent. At the other end of the scale Sydney rents have jumped 2.3 per cent in the past year, Melbourne’s up by 2.1 per cent. Brisbane advanced 0.9 per cent while Hobart gained 1.5 per cent. 
The Bureau of Statistics says the number of home loans to owner-occupiers grew 0.3 per cent in July, below expectations of a 0.8 per cent rise. This comes after a jump of 4.8 per cent in June. The number of loans for construction dropped by 0.9 per cent. Purchase of new dwellings was up by 2 per cent while established dwellings rose 0.4 per cent. 

FNN spoke to Diwa Hopkins from the Housing Industry Authority about the impact the recent investment activity is having on the market. 
'Investors who are seeking to construct a swelling for the purposes of rent of resale. lending activity to that group of investors has increased to the tune of 11.7 per cent in the month of July this year. The current lending environment is very favourable so the official cash rate remains at the record low rate of 2.0 per cent and private lending rates remain quite favourable for investment and so what we are seeing is investors taking that opportunity to invest in new housing.' 
Australian auction results
Looking at this week’s auction results across Australian capital cities - Sydney recorded a 72 per cent clearance rate from 840 properties for auction, Melbourne cleared 76 per cent from 1036 properties, Brisbane had a 50 per cent clearance rate from 145 properties listed and Adelaide cleared 57 per cent from 64 listed auctions. 
Commercial property sector
Diploma Group Limited (ASX:DGX) says that a project planned by its wholly owned subsidiary Diploma Construction to build The Marina Edge project in Port Coogee, Perth will no longer go ahead. 
Finbar Group (ASX:FRI) has completed its Norwood apartment project in Perth securing sales of $26.9 million comprising 48 lots of the 63 lot project. 
Villa World Limited (ASX:VLW) has announced the purchase of a site at Arundel on the Gold Coast for $30.6 million. 
The GPT Group (ASX:GPT) has announced the resignation of Chief Investment Officer Carmel Hourigan.

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