July Property Wrap
The latest Australian Property Monitors research shows property prices are continuing to rise across most capital cities, with a 1.9% increase during the June quarter.
The Sydney median house price reached a record high above $800,000, with house prices up 3% and units up almost 4%. Elsewhere, prices were up 2.2% in Canberra and between 1.1%-1.7% in Melbourne, Brisbane and Adelaide.
This caps off a very strong 12 month period in which price growth was recorded across almost every metropolitan and country region. Residex puts overall growth at 7%.
It is little surprise to see Sydney leading the way with a remarkable 15.37% growth rate and returns of just over 13% for both houses and units. The 15.37% figure was almost double that of Melbourne, which came in second with 8.32% growth for houses and 6% for units.
Other parts of Australia that performed well include Regional NSW, with houses up by just under 7%, Brisbane 6.5% and Regional WA just under 6%. Perth recorded a 5% increase and Adelaide 4%. Darwin had a minor loss of -1.1%.
Unit price growth was equally impressive, with the three best performing areas after Sydney being Regional SA 6.94%, Melbourne just over 6% and Regional QLD up 5.78%. It is positive to note that the Brisbane unit market also fared well with a 4.89% increase.
After such impressive growth in Sydney, a slight cooling is inevitable and our team is already noticing this in many regions. Not so the case in other parts of Australia where smaller growth rates in FY14 should lead to at least another year of steady growth in FY15.
Sydney’s west and south-west recorded a number of strong auction sales in June. Among the stand-out suburbs for growth was Mount Druitt, with houses up 30% over the year.
Directors of Ray White Green Valley, Michael Marinakis and Agostino Macri say Sydney’s west and south-west not only offer excellent value for first home buyers but are also increasingly popular among investors. Our team has certainly noticed this trend too.
A classic example of the type of properties investors are buying is 225 & 225A Carpenter Street, St Marys. This property sold in early July for $995,000 and will return approximately $52,000 per annum in rent. That is a 5.2% return and about 1.5-2% higher than the 12-month term deposit rate being offered by the major banks.
Another stand-out result was 46-52 Garfield Road, Horsley Park. This resort-style home on 2.7 acres sold above $2M in June, which shows just how much more your money can buy out west. Other outstanding auction results achieved by our team in July include:
• 126 Alt Street, Ashfield for $1.45M (LJ Hooker Ashfield)
• 95 Balmoral Avenue, Hornsby for $1.090M – $190,000 over reserve (LJ Hooker Hornsby)
• 910/1 Sterling Court, Camperdown for $678,000 (Belle Property Annandale)
• 20/1-3 Mary Street, Lidcombe for $728,000 (MQ Realty)
These properties were both sold at auction by Directors of Property Auction Services, Rob Trovato Rocky Bartolotto & Scott Dalton.
Our company clearance rate for the month finished just under 75% (up 5% from July 2013). Nationally, the average auction clearance will be about 70%, largely driven by the continued demand for property in Sydney.
Last weekend, Sydney recorded a clearance rate of 77%. The stand-out region – as it has been for much of 2014 was the Inner West at 91%. Melbourne’s clearance rate was 73%, Adelaide 61% and Brisbane under 50%.
Overall, clearance rates have tapered slightly due to a reduction in the number of registered bidders in certain regions, along with cases of unrealistic vendor expectations – which we always see after a city has experienced a boom period.
Looking ahead, the number of properties scheduled for auction is beginning to rise as we head towards the exciting spring selling season.
If you would like to discuss how Property Auction Services can assist you in delivering exceptional auction prices during Spring, please call us today on 02 8035 4465.
Rocky Bartolotto is a Director and Chief Auctioneer at Property Auction Services.
Property Auction Services guarantee to provide and implement a professional process for our valued clients choosing to sell through auction. With over a decade of experience calling auctions across all Sydney regions, we are confident our auctioneers will provide you with a service that is unrivalled and unique to each individual requests. For more details visit www.auctionservices.net.au.