After a softer 0% clearance rate last weekend in Brisbane, clearance rates have shown significant strength in returning to 31% this weekend, where a total of 5 properties were sold at auction.
This data suggests a bullish sentiment is returning to the market and that prices will likely grow by atleast 50% by year end. On being presented with this data a HIA senior economist was even more positive than Fairfax and suggested a doubling in prices by the end of the year was possible. Brisbane has obviously now shrugged off the effects of the flood, and a return to normal supply demand fundamentals, strong immigration and the mining boom suggest that if you don't buy now you'll definitely miss out forever.
(Please note the above is said as parody fashion - although I am trying to save everyone the hassle of reading the Fairfax commentary which will probably mirror something like this)
Other states to show good numbers:
Adelaide is showing strong demand with a 39% clearance rate. HIA experts have said that the 39% figure indicates strong demand driven by underlying fundamentals and have put Adeliade on their watch list as the next boom capital.
Melbourne also keeps going from strength to strength this year, posting 55% clearance rate this week down from 57% a week earlier. This suggests the shortage of homes is really starting to take hold and that foreign investors are returning to snap up bargains. The HIA in a press release has indicated that Chinese buyers are driving demand and that the government needs to introduce an auction incentive grant of atleast $50,000 per Victorian resident so that they stand a chance against the Chinese at weekend property auctions.
