8 August 2013 – Property in Australia remains strong and with a further .25% interest rate cut announced yesterday, all indications are that it will remain so.
But as we so often say, there is no such thing as an Australian Property Market.
Nationally, there was a 16% increase in residential land sales, about 3700 lots sold a month – the highest level since the GFC as was reported in the Australian Financial Review.
Let’s break this down a bit further. The NLSP survey noted a 37% rise in Melbourne land sales over the quarter, mainly due to excess stock being absorbed, smaller lot sizes and the price of land falling. ResearchFour director, Colin Keane, says Melbourne remains the weakest land market with a characteristic lack of product choice.
Perth sales rose just 5% with ResearchFour noting that both production capacity and demand may have reached their peak.
According to NLSP, in the June quarter, lot sales hit 800 in NSW metro centres Sydney, Newcastle and Wollongong – an 18% rise. This is great news for Central Coast investors as the housing market picks up while Sydney siders look elsewhere for better lifestyle and greater affordability. This increase in demand coupled with a severe land shortage on the Central Coast investors will see great returns for those purchasing now as demand outstrips supply.
Great news for South East Queensland as sales rose 58% after bottoming out in the March quarter. Midwood's Prodap Report of the Gold Coast market recorded a strong lift in vacant sales – up 55% in in the June quarter, the biggest rise since 2009.