October 18, 2013
The whips are still cracking in the residential property market with Sydney and Melbourne continuing to record solid auction performances despite the higher listing numbers last weekend.
Melbourne recorded a 76% clearance rate across 826 properties with Sydney coming in at a staggering 85.8% across 716 properties (APM data). Across all Australian capital cities there were 2,228 auctions with a preliminary clearance rate of 74.3% according to RP Data.
Next weekend the REIV expects around 1100 auctions across Victoria. In the rental market, the vacancy rates for Melbourne decreased in September 2013. Melbourne’s vacancy rate decreased from 3.7% in August to 2.9% in September marking the first time it has fallen below 3% since May.
While there are monthly fluctuations, this month’s vacancy is below the average for the year which would be encouraging for investors. The weekly house rent in Melbourne remained stable at $390 in September while the weekly rent for units decreased slightly from $380 to $375.
The vacancy rate in regional Victoria also decreased this month. It fell from 3% to 2.7% marking the fourth consecutive month of decreases. This tightening has also seen increases in the median weekly rents from $290 to $300 for houses and $240 to $250 for units.