Property market experiencing best September for years
Real estate group Raine & Horne is reporting that the property market is experiencing the best September seen in a number of years, and it may just be a result of infrastructure.
With auction clearance rates averaging 75% around Australia, Raine & Horne CEO Angus Raine said he is surprised at the pick up, but believes it will continue.
“This is surprising as federal election campaigns tend to slow real estate activity,” said Raine.
“However with clearance rates averaging around 75% in our major population centres, and as much as 85% in auction hotspots such as Sydney and Melbourne, we haven’t seen a Spring market like this since the global financial crisis half a decade ago."
The campaign to spend over $20 billion on infrastructure projects should underpin long-term property values, he said.
“I’m particularly heartened by the Federal Coalition’s commitment to improving our roads, and projects such as Queensland’s Bruce Highway, the Westconnex in Sydney and the Perth Gateway will prove a significant boost for long-term housing values".
The Bruce Highway, with $6.7 billion of improvements flagged, is expected to have a significant impact.
“The Bruce Highway impacts many regional centres in Queensland including Cairns, Townsville, Mackay, Rockhampton, Gladstone, Maryborough, Hervey Bay and the Sunshine Coast,” he said.
“Infrastructure improvements that reduce commuting times between – and within – our major population centres will be great news for economic growth, jobs and real estate values.”
This opportunity may be similar to that seen in Sydney's Hills District with the North West Rail Link, said Raine & Horne Bella Vista/Glenwood principal, Emmanuel Fardouly.
“The North West Rail Link is still six years from completion, yet it’s already having an impact, with property values up by 7% since December 2012,” Fardouly said.
“I’d expect growth consistent with this, and potentially more, as we move closer to the opening of the North West Rail Link in 2019.”