Weekly Property News 10th Edition 2021
“The headwinds and the tailwinds for investors”
Hi Guys, it’s Dean O’Brien from OBrien Real Estate with the 10th edition of the Property News for 2021 where real estate information is on the house.
Across the market, Australia wide last weekend was the busiest week for auctions since April 2020 and Victoria reported the most amount of auctions of all capital cities with 1319 auctions with a clearance rate sitting at 88%. With the increase in the volumes, the market performed very well with many reports of homes achieving results comfortably above vendor expectations.
This same time last year the clearance rate in Victoria was 58.4% with the similar number of auctions on the market. Through OBrien Real Estate this last weekend we held 40 auctions across our group, clearing 92% of them either at under the hammer at auction or beforehand or straight after. JobKeeper has well and truly completed it’s heavy lifting, with the scheme ending this Sunday along with the rental eviction moratoriums. Any headwinds or adverse effects from their removal will be limited in scope by our low interest rates, improving unemployment and a return of economic growth which all point to tailwinds for investors in 2021.
Here the main edits for the week:
- Investors get paid $12 billion this week in share dividends with many ASX companies making payments.
- Our unemployment rate drops to 5.8% the lowest rate in 11 months.
- The roll out of the covid-19 vaccines starts this week through our local GP’s. The announcement of the vaccines roll-out over 6 months ago has been one of the main reasons why we have seen growth in real estate prices.
Let’s take a quick look at the state of the rental market. In this chart supplied by the REIV and released last week, you’ll see the data over the course of 12 months shows how the rental vacancy rate across Melbourne as a whole has gone from a 2.3% to a 6% vacancy just last month. In regional Victoria, the pictures tell a different story with vacancy rates going from 1.8% to just 1% last month. And in the second slide, you’ll see the weekly rents that rental providers are collecting in all of Metro Melbourne have had a small increase in rent for houses of $5 however inner-city markets have
experienced drops of $10 a week. The story though for units is not so good with inner markets dropping on average of $50 a week. Regional Victoria is setting the bar again with rents for houses on average up $30 a week.
That’s all for this week, I’m Dean OBrien and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.