October economy diggest

Hi Everyone. I usually try to summarize myself a few economic every month, to keep on top of things and I have decided it could be a good idea to share this content.

Sydney real estate prices sent through the roof

According to residex, Sydney’s median unit price now sits at a record high of $705,000, having increased by +44 per cent or $217,000 since July 2012.

Sydney house prices are now only +2 per cent higher than one year ago, despite being +24 per cent higher over the last two years (and +61 per cent higher than in July 2012).

Rents rising are now slowing down
According to the ABS, rents rose by 0.7% last quarter.
The indices rose 1.3% over the twelve months to the September quarter 2016, compared with a rise of 1.0% over the twelve months to the June quarter 2016.
Hot Auction clearance still in Sydney
Corelogic confirmed that of hot auction markets with the combined capital city clearance rate spiking above 80 per cent this week on lower volumes than a year ago
More debate around apartment oversupply
An interesting article from finders, explaining with links to even more articles on the subject. The risk of oversupply in Brisbane and Melbourne could turn into catastrophic employment situation, should the economy be not strong enough to absorb it.
Land prices are at all time high
If you quickly look through Housing Industry Association‘s website, you will see that residential land prices really have been steepling higher, up by another +2.6 per cent in the June 2016 quarter.
This takes the median lot value to its highest ever level at $237,535.
Over the past five years the median lot value in Australia has increased by +25 per cent.
Forecast of a decline in housing price for 2018
Another article from finder, using Shane Olivier’s details:
“Nationwide price falls are unlikely until the RBA starts to raise interest rates again, and this is unlikely before 2018, at which point we are likely to see a 5% or so pullback in property prices,”
Still new more vehicles on the road
The ABS confirmed that new vehicle sales rising to their highest ever level with a massive 100,640 units shifted in September 2016, for a 2.5 per cent month-on-month increase.
Vacancy rates start to rise
SQM Research reported that year-on-year vacancy rates are slightly higher.
Sydney and Melbourne reported vacancy rates of 1.8 per cent and 2 per cent respectively.
In Brisbane, where there is still a significant pipeline of inner city apartments set to hit the market, vacancy rates are 2.9 per cent.

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