Sydney and Melbourne property markets surging
Property markets in Sydney and Melbourne are surging during the Spring season, despite grand finals impacting upon listing numbers across two weekends.
In the first week of October, 80 per cent of properties that were listed for sale in Sydney were sold. Melbourne’s clearance rate was 75 per cent, however there were 732 properties listed in Melbourne on the first weekend, and just 256 in Sydney, according to Australian Property Monitors.
The clearance rates further fuelled speculation of a property bubble, but property analysts RP Data downplayed any such notion.
Victorian housing market analyst Robert Larocca said the RBA rate cuts had only allowed the market to recover lost ground, rather than develop a bubble.
He said it was wrong to confuse recovery with a boom.
The RBA has raised concerns about a property price bubble, with one board member claiming it was “inevitable”.
Sydney homes were being cleared 20 per cent higher than last year, but properties over $2 million were not moving fast.
Across the rest of Australia’s capital cities, house prices increased less than 2%.