‘Off the plan’ headlines distract from established market volumes
With media hype focusing on the supply of new dwellings, Ray White Group’s September research indicates that established dwelling market is showing signs of slowing despite growing sales volumes.
On a state by state basis, based on transaction values, sales markets showed moderate growth with the ACT recording the highest change (2.5%), NSW (1.9%), Vic (1.3%), QLD (0.3%), SA (0.3%), Tas (0.6%), WA (0.1%) and the NT (-2.2%). These figures demonstrate the national property market equalising with the eastern states slowing and the western states making up lost ground.
Despite this slowdown, nationally, the total volume of sales reached $467 billion (rolling 12 month basis) which is a $1.5 billion increase over the previous 12 month period.
Auction volumes increased by 2.1% over the previous 12 months indicating a continued enthusiasm and optimism by vendors. According to last weekend’s auction clearance rates, Sydney was the strongest performer recording an 82%, Melbourne 80%, Adelaide 77%, Canberra 66% and Brisbane 53%.
August saw the number of listings remain steady with national growth of 0.3%.
The flat nature of new listings and a growing volume of sales will likely add to the frustrations of buyers in relatively active markets such as Sydney and Melbourne where a lack of supply helps maintain strong property values.
