Auctions are strong in Sydney and Melbourne, where housing prices continue to rise

[Sydney 21 Reuters]-Australian housing prices in October are expected to record a significant increase since mid-2017. Auctions are active in Sydney and Melbourne against the background of historically low interest rates and easing loan standards.

The country's two-year downturn in the real estate market has had a negative impact on household wealth and consumer sentiment, and the rise in real estate prices is good news.

According to data released by real estate consulting firm Core Logic on the 21st, housing prices rose 0.4% last week in major cities. The rate of increase reached 1.2% in the month up to the 20th of this month.

Sydney rose 0.5% on a weekly basis and 1.7% on a monthly basis. Melbourne also rose by 0.6% on a weekly basis and 1.6% on a monthly basis.

On a year-on-year basis, prices have continued to decline, with Sydney down 3.0% and Melbourne down 2.1%, but the pace of decline has slowed compared to the double-digit decline at the beginning of this year. Yes.

In major cities, auction close rates have risen to levels since early 2017. In Sydney, the closing rate of properties auctioned on weekends exceeded 80%, reminiscent of the previous bubble period.

A total of 1949 properties were auctioned in major cities, with a close rate of 76%.

Westpac senior economist Matthew Hassan said, “The spring trading season is in full swing and there are few moves to cancel auctions in the two major cities, and the deal seems to be doing well.” “The price is more than 1% per month, or 3% in the quarter and double-digit annually.”