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According to the latest data from CoreLogic RP, the property prices in Melbourne are rising fast, while in terms of absolute cost, they still lag behind. The year-on-year growth rate seen by Melbourne is Australia’s fastest while the property price growth in Sydney is the slowest in last 29 months.
The buyers are showing lesser interest in buying property in Sydney. Due to this less than half the property were sold in recently conducted Auctions in Sydney. CoreLogic data also suggested that Sydney’s annual property growth has been at an all time low and steadily falling since July 2015.
“Sydney auction clearance rate and property prices have been moving lower since in recent times. However, auction clearance rates and prices are consistently getting higher in Melbourne.” said Dr Nigel Abery (Ph.D.), the director of Oak Laurel Mortgage Brokers.
The same trend has continued in 2016 as well as Melbourne reached an auction clearance rate of 71.3 per cent among a total of 151 auctions while Sydney stood at 45.2 per cent. Sydney’s auction clearing rates suggest a falling housing market and danger for the property investors in Sydney.
Though Melbourne’s year on year growth was 11%, slightly ahead from Sydney which stood at 10.5%, experts suggest that the rise may be a minor deviation in the long term downward trend.
The last few months have seen the house prices falling in Sydney by 1.81% in the last quarter while for Melbourne it was up 0.65% in the last quarter.
Property investors might now be reluctant to buy property in Sydney but Melbourne is expected to enjoy continued growth in property prices.
“The increasing property prices in Melbourne will provide an opportunity to the property owners to unlock equity in their property for further investment or as a financial buffer so that they have access to funds if times become tough” said Dr Abery from Oak Laurel.
“The smaller cities in Australia such as Adelaide and Brisbane are seeing a better growth rate as compared to the previous years. This may encourage property investors looking for a mix of capital gains and rental yield which is relatively higher in these cities compared to Sydney and Melbourne” said Dr Abery from Oak Laurel.
“A number of people in Melbourne whose property values have increased are turning to Melbourne Mortgage Brokers Oak Laurel to review their mortgage options and look at unlocking their equity” said Dr Abery.
Dr Nigel Abery is the director of boutique mortgage broker company Oak Laurel. Oak Laurel has mortgage brokers in Australia’s major cities Adelaide, Brisbane, Canberra, Melbourne, Perth, Sydney and can assist borrowers wherever they are in Australia or overseas.
Release ID: 103843