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ISCOVER
By: Staff Reporter
The Easter long weekend saw the property market in Melbourne cool for the first time in several months.
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The capital city recorded an auction clearance rate of just 38.1 per cent over the weekend, down from the 78.4 per cent recorded last weekend.
RP Data’s senior research analyst told The Adviser, that the slowdown in activity was not unexpected.
“Melbourne has undoubtedly seen a very strong performance since the beginning of 2009 with strong growth in property values. Interest rates have now increased by 100 basis points from their 49 year low however, this is yet to result in a slowdown in value growth with Melbourne values up 5.4 per cent over the quarter to Feb 2010,” Mr Kusher said.
“We anticipate that during the year the rate of growth in Melbourne property values will slow as interest rates will most likely increase. Larger regions such as Melbourne and Sydney have led the surge in values in this cycle and we would expect these markets to slow during the year and the performance of the secondary markets such as Brisbane, Adelaide and perhaps Perth will begin to outperform. We anticipate Melbourne and Sydney will continue to see value growth albeit at a lower rate thanks to the ongoing supply side issues.”
The clearance rate in Sydney, while also lower than usual, was still 69.2 per cent – a solid result for the Easter long weekend.
Of the 30 properties listed for auction, 18 were reported as selling under the hammer for a combined value of $11 million.
A three bedroom house in Denistone was the most expensive property sold in the city over the weekend, going under the hammer for $925,000.
The cheapest property sold was a $203,000 studio in Rushcutters bay.
