Hi,
The REIV reported a lower volume of auctions this Saturday in comparison to the same time last year. 638 auctions were reported to the REIV with 348 selling at auction, 124 selling before auction and 166 passing in. There were an additional 139 private sales. The same weekend last year the REIV reported 841 auctions and a clearance rate of 78%.
Investors are continuing to leave the Victorian property market with new data being released by the Department of Families, Fairness and Housing showed that rate of investors selling their investment properties is rising. They looked at the amount of rental bonds (an amount held at the Residential Tenancy Bond Authority) declined from 676,400 in June last year to 654,700 to June this year, which indicates there are 21,700 less rentals.
The survey conducted also suggested that 22% of investors had sold at least one investment property in the past year which is the second highest level in the country after Brisbane.
Corelogic has released data suggesting that rental growth in Melbourne has now slowed to its lowest growth rate in three years. The three months to August 24 showed an increase of 0.8% but the change in rentals for the 12 months to August 24 was 7.0%. This is partly due to the slow down in net overseas migration.
Interestingly though while some investors are getting out of the market, some investors are seeing Melbourne/Victoria as an opportunity to get into the property market with investor lending increasing by 10.7% and the value of its lending has increased by 30.2%.
Have a great week!
Kim Easterbrook – Managing Director