Australia’s property prices fell another 1.4% in September as the cost of borrowing increased, and another interest rate rise is likely after Tuesday’s Reserve Bank meeting. The recent declines are chipping away at the huge property price increases that followed the troughs during the pandemic. According to CoreLogic, home value index was less than the 1.6% fall in August but the pace of declines could quicken again if the RBA’s key interest rate keeps rising.
Investors are betting the central bank board will hike the cash rate another 50 basis points on Tuesday, marking the fifth such rise in as many months. If the rate is lifted to 2.85%, it would be the fastest increase since a similar 275-basis-point increase between August and December 1994.
Based on the stats from CoreLogic, renters continue to face higher costs, although September’s average national increase of 0.6% was the slowest since last December. The slowdown in rental increases was more stark in regional Australia where monthly increases have reduced from a peak of 1.4% in January 2021 to 0.3% last month. Availability, however, remained low in many parts of the country, with capital city rents up 16.5% since the pandemic’s onset, with regional rents up about one quarter.
Last week’s Sydney auction clearance rate was 57%, 4% lower than the week before. There were 288 properties listed for sale, 107 properties were sold, and 49 properties were withdrawn. Moreover, the total clearance rate for state of New South Wale last week was 49%.
According to Realestate.com.au, it was reported 1345 private sales in New South Wales over last week. 126 properties were sold at auction, while 160 were sold prior to auction.
Last Saturday Sydney Auction Top5 House
▼TOP 1. AUD$3,500,000
Address: 82 Fenwick St, Bankstown NSW 2200
Land Size: 888 sqm
House | 5 Bed | 6 Bath | 4 Parking
▼TOP 2. AUD$3,417,000
Address: 8 Raymond Av, Warrawee NSW 2074
Land Size: 771.4 sqm
House | 3 Bed | 1 Bath | 2 Parking
▼TOP 3. AUD$3,410,000
Address:16 Damsel Ct, Castle Hill NSW 2154
Land Size: 1065 sqm
Internal Size: 516 sqm
House | 6 Bed | 4 Bath | 2 Parking
▼TOP 4. AUD$2,825,000
Address:787 Bourke St, Redfern NSW 2016
Land Size: 234 sqm
House | 4 Bed | 2 Bath | 2 Parking
▼TOP 5. AUD$2,750,000
Address:20 Benaroon Av, St Ives NSW 2075
Land Size: 777 sqm
Internal Size: 135 sqm
House | 3 Bed | 3 Bath | 1 Parking
Last Saturday Sydney Auction Top5 Unit
▼TOP 1. AUD$2,100,000
Address: 3207/438 Victoria Av, Chatswood NSW 2067
Unit | 2 Bed | 2 Bath | 1 Parking
▼TOP 2. AUD$1,680,000
Address: 9/13 Warringah Rd, Mosman NSW 2088
Unit | 3 Bed | 1 Bath | 1 Parking
▼TOP 3. AUD$1,450,500
Address: 3/1 Plimsoll St, Sans Souci NSW 2219
Townhouse | 3 Bed | 2 Bath | 2 Parking
▼TOP 4. AUD$1,402,000
Address: 7/16 Coogee St, Randwick NSW 2031
Unit | 2 Bed | 2 Bath | 2 Parking
▼TOP 5. AUD$1,320,000
Address: 4/30-32 Burke Rd, Cronulla NSW 2230
Unit | 3 Bed | 2 Bath | 2 Parking
Reference:
the Guardian. (2022). Property prices dropped further in September and falls ‘could accelerate’ again with rate rise. [online] Available at: https://www.theguardian.com/australia-news/2022/oct/03/property-prices-dropped-further-in-september-and-falls-could-accelerate-again-with-rate-rise [Accessed 4 Oct. 2022].
Picture and Date from domain.com.au realestate.com.au corelogic.com.au and realtisan.com.au.