Weekly market wrap 22/11

22 November 2019

Weekly Market Wrap 22/11

Auction clearance rates on the rise

Sydney recorded a clearance rate of 71.9% on 947 homes last week according to Corelogic.

Overall, it was the 2nd busiest auction week of the year for the combined capital cities. A total of 2,571 homes went under the hammer with a clearance rate of 74.1%.

This week 886 homes are scheduled to go to auction in Sydney.

Commercial predictions for 2020

Knight Frank’s Outlook 2020 report is predicting further growth in Australia’s Commercial real estate market next year.

Researchers there expect interest rates to drop even lower, boosting demand for commercial property. They say investors will ‘continue to seek relatively high yielding assets with a fixed income stream.’

Researchers predict such conditions will lead Sydney CBD office property yields to decline by 50 basis points over the next two years to 4.1%.

Fixed home loans still on the outs

In a sign Australians also believe another rate cut could be on the horizon – fixed home loans have stalled for the month of October.

Mortgage Choice reports fixed loans account for just 14% of all home loans written last month.

The rate hasn’t changed for four months and is significantly lower than rates recorded this time last year – where fixed rate loans accounted for 25% of all home loans.

Borrowers in NSW are however the most likely to choose a fixed loan, when compared to other states.

Hot topics

Perth and Gold Coast considered ‘regional’

The Federal Government has launched a new Visa scheme, which will require migrants to live regional for at least three years before they can move to a major city.

Immigration Minister David Coleman says this move comes in a bid to alleviate the population pressure on Sydney, Melbourne and Brisbane.

As part of this scheme, both Perth and the Gold Coast have been reclassed from major cities to regional hubs and are open to migrants on the Visa program.

Pub record smashed

A pub in Byron Bay has sold for a whopping $100 million.

The Beach Hotel, which has been referred to as the heart of Byron, was previously purchased for $70 million in 2017.

It was snapped up by investment bank Moelis Australia after hitting the market in September.

The ‘Beachie’ will be managed by Moelis Australia Hotel Management.

REINSW President and Board announced

REINSW is excited to announce Leanne Pilkington will be staying on for another term as President.

Board of Directors

Leisha de Aboitiz
Sarah Bester
Michael Guest
Brett Hunter
Barry Johnston
Shula Kentwell
Peter Matthews
Ewan Morton
Andrew Palmer
Linda Rudd
Braden Walters
Alexander Warburton

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