Strong start to spring housing sales

Real Estate

The spring selling season is off to a galloping start in Melbourne with a record weekend offering for this time of the year of 1,008 properties in the Victorian capital. Meanwhile in Sydney many estate agents are dealing with a lack of supply after winter stock has been sold and spring season supply is seemingly delayed, particularly on the lower north shore. Mosman has also recorded its highest sale this year with a five-bedroom waterfront mansion selling above its $16 million price guide.   
 
HIA warns on reform of negative gearing
 
The Housing Industry Association has released research showing restricting access to negative gearing would reduce investment in housing, reduce housing affordability and put upward pressure on rental prices. FNN speaks to HIA’s Chief Economist Harley Dale who says there are other ways to promote housing affordability. 
 
Industrial property at risk
 
BIS Shrapnel is warning that fully and overpriced industrial property in Melbourne and Brisbane is struggling to meet expected rates of return. BIS says the strength in the market has the potential to lead to over investment and over supply which will then produce a downturn in rents and a decline in property prices.  
 
Australian auction results

The housing market is showing no signs of easing as we head into what are traditionally the busiest months of the year for property sales:
Sydney recorded a 84 per cent clearance rate from 621 properties for auction
Melbourne cleared 78 per cent from 1008 properties
Brisbane had a 44 per cent clearance rate from 105 properties listed
Adelaide cleared 81 per cent from 78 listed auctions
 
Commercial property sector

Elanor Investors Group Limited (ASX:ENN) has agreed to pay $5 million for the four-star Albany Hotel in southern Western Australia.
 
National Australia Bank Limited (ASX:NAB) is attempting to lure home buyers to its services by offering home loan customers a $1000 gift-card this spring. 

Mirvac Industrial Trust (ASX:MIX) has agreed to sell its entire portfolio of industrial assets in Chicago to a Goldman Sachs-led fund for $US170 million, a 4 per cent premium to the book value. 

360 Capital Group (ASX:TGP) has completed the acquisition of its 360 Capital Diversified Property Fund for $21.2 million.