property prices, page-45

High-end house glut hits property market

* Font Size: Decrease Increase
* Print Page: Print

Sanna Trad | April 21, 2008

THE softening housing market showed no signs of improvement over the weekend as auction clearance rates remained low across the country, particularly at the top end of the market.

In Sydney, the clearance rate over the weekend was 49.9 per cent, little changed from last week but significantly down on the 58.3 per cent that sold on the corresponding weekend last year.

Almost 1000 properties were up for auction over the weekend in Melbourne. Although the city's clearance rate increased marginally from the previous weekend to 62 per cent, it was still well below the 78.6 per cent of 12 months ago.

Macquarie Bank head of property research Rod Cornish said 2008 was likely to continue to be a flat year for the property market. "We're not at the level of past slowdowns; it's nowhere near as bad as 2004 or 2006," Mr Cornish said. "That said, there's nowhere near the strength of last year."

The trend was also evident in Brisbane and Adelaide over the weekend. In Brisbane, the clearance rate of 37.3 per cent was well below the 65.9 per cent on the same weekend last year.

The 50 per cent clearance rate in Adelaide was a slight improvement on the 46.7 per cent from the previous week.

Mr Cornish said the volume of properties for sale was contributing to lower clearance rates.

The general economic downturn has led to a glut of million-dollar properties up for sale, according to a national survey by Australian Property Monitors.

In NSW, the number of seven-figure properties on the market has increased by 14 per cent since this time last year. In Queensland and Victoria, the figure has grown more than 37 per cent; in Western Australia, it has more than doubled.


http://www.theaustralian.news.com.au/story/
0,25197,23571500-25658,00.html