property to the moon, page-71

The RP Data-Rismark Home Value Index results for May 2011 were released this week. The results showed that the soft market conditions are
persisting however the rate of decline in values has however, improved since January. Looking at the seasonally adjusted value changes month-by-month
this year provides some good insight. In January combined capital city values fell -1.2%, in February they fell -0.3%, in March they were down -
0.6%, April recorded a value fall of -0.4% and in the most recent month, values fell by -0.3%. Since the beginning of 2011 capital city home values
have fallen by -2.7%.
At an individual capital city level, Perth continues to disappoint with values falling by -7.5% over the year. Brisbane was the second weakest
performer with values down -5.9% for the year. In Brisbane, values are now -6.3% below their peak and in Perth, the -7.5% fall over the year
represents the percentage fall from the peak of the market. At the other end of the spectrum, Sydney and Canberra are the best performed
markets however, when value growth is adjusted for inflation, property values are becoming more affordable in these cities. Sydney values are up
by 1.0% for the year and in Canberra values have shown no movement over the last 12 months.
The broad market trends show that units have recorded superior growth in values over the year (-0.2%) to that of houses (-3.0%). This trend
reflects the price sensitivity of active buyers in the market. It also highlights ongoing densification within capital cities and changing lifestyle
patterns which indicate that Australian?s are becoming more accepting of inner city unit living. Dwelling commencements data supports the change
with unit commencements climbing sharply at a time when house commencements are falling sharply.
There were 1,586 auctions held last week and RP Data collected results on 82% of them. The weighted clearance rate across the capital cities
was 46.9%, the fifth week running where the combined capitals clearance rate has been recorded below 50%. Melbourne and Sydney both
recorded clearances above 50% with Melbourne at 52.6% across 696 auctions and the Sydney clearance rate at 51.5% across 596 auctions.
The number of new properties advertised for sale fell by -12.1% across the country over the last four weeks compared to the previous four weeks
ending June 19th. Across the combined capital cities, new listings fell by -9.5%. Nationally, new listings are now just 0.8% higher than at the same
time last year and in the capital cities they are -4.4% lower than last year. Despite the substantial fall in new listings, total listings only fell by -1.2%
across the country and by -1.6% across the combined capital cities. Total listings remain at elevated levels, 29.3% higher than last year nationally
and 25.1% higher within the capital cities. Less than 48% of total listings nationally are within the capital cities.
The number of new properties advertised for rent has fallen by -3.8% over the last four weeks compared to last week?s result. Capital city new
rental listings have fallen by -3.7%. Despite the fall, new rental listings nationally are 15.2% higher than at the same time last year and in the
combined capital cities they are 12 5% higher Total rental listings are down 0 6% nationally over the last week and 0 3% lower in the capital
New advertised listings Total advertised listings
12.5% higher. -0.6% -0.3% cities. Again, listings remain at much higher levels than the same time last year, up 14.0% nationally and 11.4% in the capital cities.


total listings for sale: 280,465.
total rentals: 94,937
national auction clearance rate: 46.9%


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