Sydney's home auction clearance rates point to weakening demand

Sydney's home auction market cleared 75 per cent on the weekend – the second-lowest rate of the year... Spring is in the air for rural land values

Clearance rates point to weakening demand
Tougher lending rules may be having an effect on Sydney's property market as the weekend's clearance rate was 75 per cent – the second-lowest rate of the year.
"The lowest clearance rates were in south-west and western Sydney at around 50 per cent, and those areas have been traditionally sustained by investors," domain senior economist Dr Andrew Wilson told the Financial Review. "So I think this is clear evidence that APRA and bank lending rules are having an effect."
Things are similar in Melbourne – the weekend auction clearance rate was down to 76.3 per cent from 78.4 per cent last week, but buyer's agents said there were still plenty of willing buyers.  
Wakeline Property Advisory director Paul Nugent said the spring selling was just trying to crank up. 
"I think there is still energy in the market at the moment. There is a bit more room for price growth but I think when the listings start to grow, which they will, we will start to see some of the gloss come off the market," Nugent said.
"Any form of minor correction will happen in mid to late October when we will see higher volumes of property."

Spring is in the air for rural land values
According to Colliers International's agribusiness director Tim Altschwager, this spring has a positive outlook for
 rural land values in South Australia.
Altschwager told the Financial Review that "On the back of the falling dollar, we are seeing an increased level of inquiry across the board, particularly for large scale operations."
"Beef cattle operations are in demand as are large scale cropping enterprises –  anything in the grain sector.
"We might see a bit more buying activity. Overseas funds are reasonably active in South Australia. There's been a bit of growth in values where there are economies of scale."
The Barossa Valley remains the most sought after SA wine region.