There are some encouraging signs for the Australian property market and the international property market is looking pretty good too but more on that in a moment.
Firstly – the Sydney property market appears to be heading for an upswing, with auction clearance rates hitting near record levels. After a few quiet years it seems things are finally turning a corner. Australian Property Monitors reports the auction clearance rates for Sydney units was 74.9 per cent in May – second only to the 76.3 per cent recorded in May 2002, making the result a near-record level. Auction clearance rates for houses in Sydney were also encouraging at 65.3 per cent – the fourth highest figure for May in over the past 23 years. Michael Matusik says Sydney traditionally leads us out of any downward cycle.
Meanwhile CommSec reports Australian household wealth levels are back at record levels. Just over 22 per cent of total household assets are being held in cash and deposits and given the low interest rates on offer at the moment, it could prompt people to start investing in property a little bit more. Internationally now and there are sign that Global markets are strengthening with analyst website Global Property Guide, saying house prices have increased in 28 out of the 42 housing markets it looks at and in the first quarter of 2013, house prices increased in 30 countries. Dubai has had the highest value gains, going up by nearly 30 per cent in the first quarter of the year. Hong Kong had gains of 20 per cent over the past 12 months followed by the US, which improved by 10 per cent. KPMG Demographer, Bernard Salt, says many global property markets have room to grow… and European countries are also doing well because they’re recovering from a low base.