#25

Mid-Spring Auction Market Holds Steady with Pre-Cup Super Saturday Looming

The spring auction season is in full swing, with sellers continuing to see solid outcomes, despite clearance rates lagging behind last year’s highs. Last weekend’s auction clearance rate landed at 61%, a slight dip from the previous week’s 62.1% and well below the 68.7% recorded this time last year.

National Auction Activity

• 2,373 auctions were held, slightly fewer than the 2,499 the previous weekend but well above the 1,989 auctions during the same period last year.
• Pre-Melbourne Cup Super Saturday is just around the corner, bringing a surge in listings that will put buyer demand to the test.

Sydney Market Snapshot ???

• Clearance rate: 71.3% (up from 67.4% last week)
• Top regions: Lower North led with an 81.3% clearance rate, followed by the South at 78.0%
• Median price: $1.765M, up from last weekend’s $1.567M
• Top sale: An 8-bedroom property in Strathfield sold for $12.5M

Melbourne Market Movements ??

• Clearance rate: 63.7%, up from 60.7% but still lower than last year’s 69.8%
• Median price: $1.05M, rising from the previous weekend’s $980K
• Top-performing region: Inner East, with a clearance rate of 68.9%

Key Takeaways

• Auction volumes remain healthy, though clearance rates continue to trail last year’s stronger results.
• Sydney is the standout performer, with rising median prices and solid buyer demand.
• The upcoming Super Saturday will bring a flood of new listings—whether buyers absorb the influx or hold out for bargains remains to be seen.

As we approach one of the busiest weekends in the auction calendar, all eyes are on buyer activity and whether sellers will adjust their expectations in response to increased competition.

ANZ Predicts Property Price Boom in 2025 – Is Your City on the List?

澳新银行 has released a forecast predicting significant growth in property prices across Australia’s capital cities, with all eight capitals expected to experience a rise by the end of 2025.

2024 Property Projections

• Perth: +25.1%
• Adelaide: +15.4%
• Brisbane: +15.2%
• Sydney: +4.2%
• Melbourne & Hobart: Slight declines anticipated

2025 Forecast

• Perth: +7.4%
• Brisbane: +6.4%
• Sydney: +6.0%
• Adelaide: +5.7%
• Melbourne: +3.9% rebound

Key Insights

• In 2024, Perth, Adelaide, and Brisbane are expected to lead the charge with impressive double-digit growth.
• Melbourne and Hobart may see minor declines next year, but 2025 looks brighter, with all capitals projected to grow.
• Even cities with modest gains like Sydney are poised for steady recovery in 2025.

With the market expected to shift over the next 18 months, Perth and Brisbane stand out as particularly attractive investment opportunities. Investors should watch closely as market dynamics evolve.

Stay tuned for further insights into property trends and potential investment strategies.

No Rate Cut Before Christmas? Here’s Why

Australia’s job market continues to outperform expectations, reducing the likelihood of an interest rate cut before the end of 2023.

September Job Market Highlights

• 64,000 new jobs were added, far exceeding the forecast of 25,000.
• Unemployment rate held steady at 4.1%.
• Participation rate hit a record 67.2%, meaning more Australians than ever are working or actively seeking employment.

Impact on Interest Rates

• RBA Governor Michele Bullock indicated that the strength of the labour market makes a rate cut unlikely in 2023, despite easing monetary policies in other countries.
• Market predictions for a December rate cut have dropped to 1-in-3, down from 50% prior to the jobs data release.
• Looking ahead, analysts expect up to three rate cuts in 2024, with rates potentially dropping to 3.7% by the end of 2025.

Key Takeaways

• The Australian labour market is performing better than expected.
• No rate cuts are likely for 2023, despite earlier hopes.
• 2024 may bring some relief with multiple rate cuts projected.

With the RBA taking a cautious stance, borrowers may need to hold tight a bit longer, but 2024 looks more promising for those hoping for rate reductions. Stay tuned for further updates as the economic landscape evolves.