Housing Prices spook investors

Housing Prices spook investors

Trad by Sanna

March 03, 2008 12:00 am
Article: The Australian

THE likelihood of another rise in interest rates, perhaps as soon as this week, housing spooked potential investors on the weekend, with low clearance rate recorded in Sydney, Brisbane and Adelaide.
Of the 143 properties auctioned in Sydney this weekend, only 94 were sold for a clearance rate of 66 percent, compared to the 186 that were sold in the city on the corresponding weekend l last year.

BIS Shrapnel CEO Robert Mellor said that the share of the market volatility and fears of an expected rise in interest rates was the likely cause of the weakness of the market in Sydney.

"I think people are more cautious in Sydney, and that's why the market has had a very soft start," he said.

"There is a lack of dynamism on the market in Sydney, particularly in relation to Melbourne. But Melbourne was a lot more room for the upward movement. "

The housing market has continued its strong in Melbourne earlier this year with 629 of 874 properties going under the hammer being sold, a clearance rate of 72 per cent.

In Brisbane, the number of units sold decreased slightly compared to last week with 13 properties sold under the hammer of the 24 lists, for a clearance rate of 54.2 percent, down 55 percent.

The release rate throughout the city was down 8 percent over the same period last year.

The release rate in Adelaide fell by 3 per cent compared to last week, to 70 percent and a reduction of almost 20 percent compared to this time last year.

Of the 33 properties that went under the hammer Adelaide, the weekend, 23 were sold.

The most expensive property sold during the weekend was a luxury two-bedroom in Sydney's CBD, which sold for $ 3 million. The cheapest was a one-bedroom apartment in Greensborough, in Melbourne's outer north, sold for $ 135000.