August 2009

RP Data - Rismark International have recently released the Riskmark Home Value Index Release with good news for Australian real estate. Reports such as these are all showing that confidence is returning to the market, this return in confidence was highlighted at our recent Auctions held on August 20th at the Sofitel Hotel in Broadbeach. Fourteen out of fourteen `Freshwater Point` apartments that were to be auctioned that night on behalf of the Mortgagee were sold prior to Auction and out of the remaining nine properties that were Auctioned that evening, seven out of the nine were sold under the hammer. This resulted in an amazing auction clearance rate of over 90% and backed up our last Auction campaign held at the end of July where an Auction clearance rate of over 85% was achieved.

Below is the RP Data Rismark International Home Value Index Release:

A 4.5 per cent increase in Australian home values in the first half of 2009 heralds good news for the property market with improvements being recorded across all market price segments according to the combined RP Data-Riskmark National Home Value Indices out today.

RP Data national research director Tim Lawless confirmed that prices improved across all price segments over the last six months, however growth is moderating as we move into the second half of 2009.

Rismark International managing director Christopher Joye said "Outside of cash, Australian residential property has proven to be a safer store of wealth for households than shares or commercial property."

Mr Lawless said "The recovering residential environment comes as consumer and business confidence records large improvements. Housing finance approvals are trending upwards for both owner occupiers and investors, and auction clearances are averaging more than 70 per cent across the nation."

"Growth across all markets is being recorded over a broad base, not just in first home buyers markets as commentators have suggested," he said.

Based on the first half year results, home values have risen in the top 20 per cent of most expensive suburbs, the middle 60 per cent of suburbs and the cheapest 20 per cent of suburbs ranked by price.

The top 20 per cent of most expensive suburbs across Australia have risen in value by a stunning 5.7 per cent since their lowest point in January 2009 which follows a hefty 10.3 per cent fall in values between February 2008 and December 2008.

Mr Lawless said the fact that prices are improving across all segments of the market demonstrates that improved affordability and attractive buying conditions are the key market drivers rather than the boost to the First Home Buyers Grant.