# WILSON WEEKLY Ep 135 | August House Prices Accelerate as Interest Rates Fall

An episode of [Money Mentor Podcast™](https://invisiblenetwork.ai/podcast/1632604767), 10 Sep 2025, 35 min.

Audio: https://episode.flightcast.com/ktryubqiwq1gfibyafakwyjo.mp3

Join Infinity's Brandon Robinson and Dr. Andrew Wilson for the latest Australian housing market data. This weekly property market update is presented to you by Infinity in conjunction with Australia's leading independent Chief Economist, Dr. Andrew Wilson of My Housing Market. Discover our new tool: What's My Rental Home Yield? Money Mentor YouTube Channel: @moneymentorau Link to Dr. Andrew Wilson on LinkedIn: / dr-andrew. . If you enjoyed our podcast, make sure you follow and subscribe to stay up to date with the latest episodes.

## Transcript

[0:00] Today's dollars in inflationary dollars.
[0:02] You earned 16 cents back then carrying your fucking fossil.
[0:06] Money isn't rude of all evil.
[0:07] The fucking lack of it is.
[0:08] Not money.
[0:09] The lack of understanding money.
[0:11] When I put that into emphasis, when I realized that psychological effect and how it hit our family, I have to be in the fucking way.
[0:17] You are now watching the money made to a podcast.
[0:20] With Graham Holm.
[0:21] Graham Holm.
[0:22] Graham Holm.
[0:22] Graham Holm.
[0:26] You're fucking gone.
[0:27] See ya.
[0:29] weekly on the Money Mentor podcast.
[0:31] I've got none other than Doc Wilson today.
[0:33] My name's Brandon, who's gonna be your co-host.
[0:36] And it's been an exciting August, hasn't it, Doc?
[0:38] Yes, it has, Brandon.
[0:40] Goodbye to what's been a very strong August in our housing markets and more to come, I would suggest.
[0:46] Hello everyone and welcome to spring.
[0:49] It is happy spring.
[0:50] Of course, spring is traditionally the strongest period for our housing markets.
[0:55] And we've got a, if I pardon the pun,
[0:58] a really good springboard into spring with not only a strong winter market, an exceptionally strong winter market, because winter is typically the downside, not downturn, but the downtime for winter for housing market activity because people have school holidays, they're trying to get a bit of sunshine either up north or further up north internationally.
[1:22] And that means particularly we have a lower proportion of higher priced properties here.
[1:27] in the market.
[1:27] So that's behind us now.
[1:29] And of course, the real impetus is from that interest rate cut that we had over August, which really hasn't worked its way into the system as yet.
[1:39] We're certainly feeding off the interest rate cuts in February and May.
[1:43] So more to come.
[1:44] Happy news for homeowners, higher prices.
[1:48] And also we've got another stimulus to the market, which is the government's first home buyer scheme, which will certainly bring
[1:56] tens of thousands of first-home buyers into the marketplace.
[2:00] I believe it will mean higher prices.
[2:02] Treasury are predicting just a slight increase in prices over the next few years.
[2:07] I take that one with a grain of salt.
[2:09] But certainly it's good news to be welcoming more first-home buyers into the market to realise the great Australian dream.
[2:16] So I'm waxing on lyrically now.
[2:18] I need to stop and get on with what's going to happen this week in the housing market.
[2:23] So, yeah.
[2:24] Let's have a look at our slide deck up and running.
[2:27] And of course, my housing market is my brand.
[2:30] I operate as an independent commentator on the housing market.
[2:33] We bring the podcast to you every week through the good folks of Infinity.
[2:40] And we are all about bringing you the latest news on the housing market, not just prices and rents, but also those underlying key drivers.
[2:51] of supply and demand and of course what's happening in the economy which is all very important for the housing market particularly in relation to interest rates.
[2:59] So my housing market is all about the current state and future prospects of housing markets.
[3:05] Not only do we bring commentary to the table but also
[3:10] We have our own in-house data, which we compete with the other data providers in the marketplace.
[3:16] So it's all about evidence-based insights.
[3:20] Yes, evidence-based insights.
[3:22] This is a click-free zone.
[3:24] So we want you all to be making property decisions based on strong background information.
[3:31] So let's get on with the data for the first week of September.
[3:36] Hello, September.
[3:37] Hello.
[3:38] Great, it's going to get warmer.
[3:39] It's pretty cold here in Sydney, let me tell you.
[3:42] I'm heading up north again this week.
[3:46] So I'll be welcoming some Queensland sunshine.
[3:49] So week ending Wednesday, September the 3rd.
[3:52] This week we're going to bring you the latest home prices, August home prices, fresh off the press.
[3:59] July home building approvals.
[4:01] And as usual, the latest weekly auction results.
[4:05] So latest home prices, house prices rising and rising, no surprise there.
[4:11] Given the impetus of lower interest rates, as I mentioned before, in February and May,
[4:16] Lower interest rates always mean higher house prices.
[4:20] Momentum is building and no surprise that we've had strengthening results for house price growth over the August quarter compared to
[4:32] the July quarter.
[4:33] And this will continue, particularly given the drive of that August interest rate fall, which is yet to work its way significantly into the system.
[4:47] As I said, also, we have some government policies, which will introduce more first home buyers into the marketplace.
[4:54] Confidence is high
[4:55] given higher house prices, still strong economy.
[4:59] And as we'll see shortly, still low levels of new home construction.
[5:05] Let's have a look at the national data here.
[5:09] Five months in a row we've had, in fact, six months in a row we've had higher national house prices.
[5:16] This is the weighted average for national capital city house prices.
[5:21] It measures house prices in regard to what's happening in terms of sales over the three months to August.
[5:28] And then we compare it to the three months to July.
[5:32] So it's a rolling measure of activity rather than just a static month by month model, which tends to give us fewer, obviously, observations, fewer prices, and means it's less reliable.
[5:45] We now go quarter by quarter, but we advance that month by month.
[5:49] I hope I'm not confusing people.
[5:51] So that gives us a really good feel for the underlying trend.
[5:55] So on the rise again.
[5:57] national house prices and the rate of growth is actually accelerating now.
[6:03] So let's have a look at the data for house prices on a capital city basis.
[6:08] Up by 1% over the quarter compared to the previous quarter, national house prices.
[6:14] That's an increase on both the past two monthly quarters of growth.
[6:19] So as I said, house price growth is accelerating.
[6:23] The top performer there is a resurgent Darwin market.
[6:27] up by 3.5%.
[6:28] That Darwin market has really caught fire.
[6:32] It's very, very strong over recent months.
[6:34] Of course, it's a smaller market, so it tends to have some volatility in the results.
[6:40] And also there's some seasonal factors in Darwin.
[6:43] It has a very strong wet and dry season.
[6:45] But nonetheless, very strong growth again over the month in Darwin.
[6:50] Number two there is Brisbane.
[6:52] Brisbane just keeps on keeping on up by 2.3%, very strong result.
[6:58] Sydney up 1.4%, Adelaide up 0.7%, Perth up 0.6%.
[7:04] So all markets with the exception of Hobart have recorded quite steady growth over the August quarter compared to the.
[7:13] July quarter.
[7:15] That Melbourne market also keeps giving, keeps keeping on and it's certainly picked up this year, the Melbourne market after a year or so of subdued results, up just 0.1% over the month but it's up now 3.3% over this year so far.
[7:33] and up by 3.4% over the full year.
[7:36] That's the first time in some time that we've actually seen annual house prices rising in Melbourne, and I expect that to continue.
[7:46] The spring selling season is typically a very strong period for the Melbourne market.
[7:51] Melbourne has the highest proportion of prestige properties of all the capital city markets.
[7:56] And as I mentioned before, spring does bring out higher-priced property activity.
[8:02] And it has been the higher-priced portions of the Melbourne market that have been dragging the chain.
[8:08] Mid-price sections have been doing okay, outer east and the northeast.
[8:12] But we expect to see a real pickup in prestige properties, particularly the inner east and the inner south over Melbourne, as we typically do see.
[8:22] But we wait and see if that rise in confidence increases
[8:25] catches up with higher priced properties in Melbourne.
[8:28] Just looking at the yearly results, Darwin, as I mentioned, very strong recently, up 16.2% over the year.
[8:37] And that Brisbane market just keeps on keeping on, as I said before, up 11.1% over the past year and up 29.2% over the two-year period.
[8:50] And Perth, still strong market activity in Perth, up by 39.8% over the past two years.
[8:58] So all good news there for homeowners.
[9:01] First-time buyers will have to be challenged by higher prices going forward, but they do have lower interest rates to offset that.
[9:08] But we shouldn't be surprised, again, a very strong result for house prices fuelled by particularly lower interest rates.
[9:16] And we will discuss over coming weeks where we will perhaps see more interest rate cuts, a little bit more problematic as we discussed last week.
[9:25] But nonetheless, we still haven't seen the full force of that August cut to interest rates, which we will certainly see over coming weeks as we enter the beginning of the spring selling season.
[9:37] Unit price also stronger, up by now.
[9:42] seven consecutive months, the national unit prices.
[9:48] So a very consistent increase in national unit prices.
[9:52] Of course, this is a capital city model, which uses a weighted average.
[9:57] So it's weighted based on the number of sales in each of the capital cities.
[10:01] So obviously, particularly for units, it's heavily biased towards Sydney, Melbourne and Brisbane.
[10:09] So Brandon, another...
[10:12] positive result for unit markets going forward.
[10:16] And that's not just house price, sorry, house owners that'll be smiling.
[10:21] It's also unit owners that'll be smiling as well.
[10:26] I'm definitely smiling.
[10:27] Yes.
[10:29] So it's all good news.
[10:30] When we look at the breakdown there, the strongest results there are for Adelaide and Australia.
[10:36] And Brisbane, very strong results in that Adelaide market.
[10:39] That Brisbane market really is spectacular in terms of prices growth for units.
[10:44] It wasn't that long ago that there were plenty discussing the potential for oversupply in the Brisbane unit market.
[10:51] There are predictions of saturation in terms of too many units.
[10:55] Gee whiz, has that proven to be wrong?
[10:57] Up by 2.1% over the month, the Brisbane market.
[11:00] Up by 11.1%, Brandon.
[11:04] Over the years so far, gee whiz, that's a strong growth with still five months to go.
[11:09] And over the past year, up by 15.9%.
[11:12] So gee whiz, what are we going to end up with Brisbane unit prices this year?
[11:17] And over the past two years, Brisbane unit prices up nearly 50%, 44.9% over two years.
[11:25] So some strong results.
[11:26] All capital cities, with the exception of Hobart, again, recorded higher unit prices
[11:32] over the August quarter compared to the September quarter.
[11:36] Again, which is Adelaide, another strong result, but Adelaide is a smaller unit market, doesn't have as many sales as a relation to house sales, but nonetheless still strong growth up 11.2% over the years so far by 12.1%.
[11:53] over the full year.
[11:55] Melbourne again, good result there.
[11:57] Sorry, Melbourne again up by 0.90%, one of its strongest results this year over the month up so far.
[12:05] Similar to houses up 3% this year so far, up by 2.1%.
[12:10] Again, it's been some time since we've seen
[12:13] Melbourne unit prices rising on an annual basis.
[12:17] So again, good prospects for the Melbourne market, the good Melbourne market going forward.
[12:24] So if you want to see a full copy of the August house and unit price report from My Housing Market, there is a QR code.
[12:32] If you scan that code, you will get a PDF copy of the latest August house and unit price report for your record.
[12:40] So
[12:41] Again, Brandon, some good news on house prices.
[12:46] Not surprising, lower interest rates always mean, well, just about always mean higher house prices and unit prices.
[12:54] And we're seeing that unfold in our housing markets.
[12:58] And plenty of upside going forward, perhaps with the prospect of an interest rate cut again.
[13:04] But we need to wait and see just how the economy pans out over the next couple of months.
[13:09] So one of the issues that has been supporting higher house prices is a chronic undersupply of
[13:15] homes in our economy or in our housing markets.
[13:19] Um, we're, we're very similar to a number of other advanced economies that can't provide enough housing for their populace.
[13:26] Uh, and of course, uh, uh, too much demand, not enough supply always means higher house prices, as you know, Brandon.
[13:32] And, um, uh, we have now the latest home building approval data and not good news because we're seeing home building approvals fall, um, over July.
[13:45] Home building approvals down by 9.5% over July, following an 11.3% June rise.
[13:52] Again, it's a response to the volatility of building approvals for units.
[13:58] They were down sharply.
[13:59] We tend to see a roller coaster ride for building approvals for units on a month to month basis.
[14:05] So after a couple of strong months of increases for unit approvals, we've now seen a sharp
[14:13] by 22.3% over the month.
[14:16] The house is up 1.1%.
[14:19] Houses have actually been falling, Brandon.
[14:21] So some better news there for house approvals, but the trends are still quite low.
[14:26] Western Australia was the top performer for home building approvals, up by 11.8%.
[14:33] But the growth levels still remain depressed compared to previous strong periods of building approval data for homes.
[14:41] and the quarterly trend is easing.
[14:44] So we have seen a surge in unit approvals this year so far, but we've actually seen, which is good news, more units.
[14:53] It's not going to add quickly to our undersupply or our need for more housing in our housing markets because, of course, it takes a couple of years at least for building approvals for units to become completions.
[15:06] But nonetheless, it's a good sign.
[15:09] that we are getting more units into the marketplace, significantly more units.
[15:13] But the offset to that is we're now seeing fewer houses.
[15:15] So it's six or one half a dozen of another in some respects.
[15:21] So this is the data down by 22.3% units, overall down by 9.45% over the month and up by 1.1% housing.
[15:27] But when we look at the annual data, we can see that surge.
[15:39] in unit development.
[15:40] So far this year, unit approvals are up by 41.1%.
[15:44] It's been a big year for building approvals.
[15:47] State governments are obviously being activated to perhaps ease planning restrictions, certainly up and about in terms of significant approvals, particularly in the main states for units, up over the past year by 26.5%, significantly ahead of house approvals.
[16:06] up by 3.3% over the year so far.
[16:09] So the big story for building approvals for homes is certainly units.
[16:17] We can see the trend there just starting to ease.
[16:20] This is the national building approval trend on a quarterly basis, just starting to ease a little bit.
[16:26] You can see the numbers from month to month underlying there have certainly fallen away.
[16:33] And that, of course, is, as I said, because of that.
[16:35] sharp decline in units.
[16:37] And we can see there that volatility of the unit series, up and down, up and down, up and down, very volatile from month to month.
[16:45] The example with this month's data was Sydney, where we saw a huge decline in the number of buildings' approvals for units.
[16:52] because that followed a massive increase the month before for Sydney unit building approvals.
[16:58] And it's because we do see big developments coming through on a month by month basis, which tends to amplify the building approval data overall and particularly for units.
[17:10] But you can see there the trend just starting to fall away for both units and houses.
[17:17] The real concern is houses, which are now tracking at around about the same level as a year ago on a month-by-month basis.
[17:24] So even though the good news is there for units, as we can see the rise this year, but we've seen a flattening out in houses.
[17:31] And of course, as I mentioned, units take some time to become actual live-in residences, whereas houses are more immediate in terms of how they impact the housing market.
[17:43] When we look at the capital city breakdowns, Melbourne, as usual, front and centre in terms of overall building approvals for homes.
[17:52] But what we're seeing now, you can see there that Sydney, after trailing Melbourne in unit approvals for some time now, is now catching up and overtaking Melbourne for building approvals for units.
[18:07] So Melbourne's a big story for unit approvals.
[18:10] Certainly the state government there has...
[18:13] increased the impetus for particularly middle ring and inner city, inner suburban unit approvals.
[18:21] So certainly a very strong position in Melbourne, but being matched by Sydney, which is also accelerating planning permits for higher density housing.
[18:34] And we can see there, look at this growth.
[18:35] This is the growth this year so far.
[18:37] of each of the major capital cities.
[18:40] Sydney up 33% so far this year compared to the same period last year.
[18:45] Melbourne up 34%.
[18:46] You can see Sydney now exceeding the Melbourne data.
[18:51] Brisbane up 41.8%.
[18:53] Adelaide up.
[18:54] Adelaide, which is a smaller market, as we mentioned, in terms of prices for units, but still up 91.7%.
[19:00] And Perth up 54%.
[19:01] But the concern here, Brandon, is that Melbourne house approvals
[19:07] building approvals for houses are now down 4.7% compared to the same five, sorry, seven months last year.
[19:16] And similarly, Brisbane building approvals for houses are down 2.4%.
[19:22] And we've seen how strong that Brisbane market is in terms of prices growth.
[19:27] Plenty of demand in Brisbane, and yet they're now building fewer homes or houses than they did
[19:35] over the same period last year.
[19:36] So that can only mean, again, constraints on supply and typically higher prices going forward for houses in Brisbane.
[19:46] And Melbourne also...
[19:48] underperforming in terms of what it was producing last year over the same time for houses.
[19:54] We can see there with the long-term chart the big fall that we've seen in house overall capital city dwelling approvals that's houses and units down by still 27.7% starting to rise again now the annual data on the back of higher unit approvals but still well down
[20:12] on the peak performance back in 2016.
[20:15] And that explains our undersupply period over the longer term.
[20:19] When we look at units versus houses, units are actually down 44.9%, picking up a little bit unit trend, but still well down on previous strong periods of unit development.
[20:32] And we see there that house, the trend for houses, the annual trend, and this is the annual trend taken on a month to month basis, is now starting to flatten and still well below the pre-COVID peak there.
[20:46] And, you know, some concerns over building approvals for houses.
[20:51] for houses going forward, Brandon, but the units are certainly looking a lot better going forward.
[20:58] So let's have a look at the latest weekly auction results for the last week in, which we do every week because it's a very good forward indicator of underlying housing market performance.
[21:13] So the latest weekly auction results, the strong winter market as we've discussed finishes on a high
[21:19] more robust clearance rates despite a big surge in end of season listings, which we do see now.
[21:25] And we will see more listings coming into the market.
[21:28] We're seeing that with overall listings, not just auction listings, as that spring selling season gathers momentum.
[21:37] It has been a very good springboard, as I said, from the auction market into the spring selling season.
[21:42] And we still haven't seen the full impact of that August RBA rate cut.
[21:48] And buyers will be, which are out in force, will be, I guess, feeling better about themselves because they'll have more choice of properties going forward.
[21:57] But as we always say, most buyers are sellers and sellers are buyers.
[22:00] So it sort of evens up.
[22:02] More listings means more sellers, which will mean eventually more buyers and vice versa.
[22:07] So here's the data.
[22:08] Big rise in Sydney numbers over the week, 1,029 auctions in Sydney, over 100 more auctions compared to the previous week.
[22:16] Another very strong result, 78.1% in Sydney.
[22:20] It's been tracking very close and above 80% over the past month, which we typically look at as starting to talk about the B word, which is boom, when we start getting 80% clearance rates, well ahead of where it was a year ago.
[22:35] the Sydney market for both listings and clearance rates.
[22:39] Melbourne also a big rise in listings, 1,022 auctions conducted over the week.
[22:44] Another very strong clearance rate, or certainly strong clearance rate in Melbourne,
[22:48] Melbourne's been tracking in the mid-70s over most, the mid to high 70s over most of August.
[22:54] And you can see how much that August market has advanced this year.
[23:00] Brandon's up by 10% compared to the same week last year.
[23:06] Brisbane a little bit better over the week.
[23:08] Brisbane, of course, has a different model in terms of its auction clearance rate implications.
[23:14] But as we've seen, Brisbane house prices continuing to grow.
[23:17] even though its auction clearance rates are typically well below Sydney and Melbourne.
[23:21] Adelaide, nearly 80% clearance rate in Adelaide.
[23:24] It has been a little bit underperforming recently compared to the big results in Adelaide a year ago.
[23:29] So we'll see if that momentum continues over spring.
[23:33] And certainly Canberra has picked up a couple of gears over the last month from sort of trundling in the mid-50s for most of the past year.
[23:43] Well, certainly last year.
[23:45] um canberra has recorded some much stronger results and uh the prospects for a real revival in that melbourne and in that canberra market are very much alive going forward when we look at the monthly trends over this year over this year over the past 12 months it's a very similar trend with all our capital city markets rising through the year and tracking higher than a year ago that's sydney same old story there for melbourne uh similar to where it was over july
[24:14] but well ahead of where it was to start the year and over the same period a year ago.
[24:20] Brisbane, tracking around about where it was a year ago, but certainly has picked up over the past three or four months driven by those lower interest rates.
[24:28] And Adelaide, again, same old, same old in terms of these trends
[24:33] higher through the year and certainly higher over the past few months driven by lower interest rates.
[24:39] And Canberra really has picked up well ahead of where nearly 15% higher than where it was over August last year.
[24:46] So those monthly clearance rates tell a clear story, Brandon, in terms of...
[24:51] how our auction markets are robust and certainly active at the moment.
[24:57] And as I said, it's a very good preview into the spring selling season going forward.
[25:02] If you're looking for the latest auction clearance rates, the Capital City Snapshot is available on my LinkedIn channel, Doc Andrew Wilson at LinkedIn, every Saturday night at 6 o'clock.
[25:14] And on Sundays at around about 9am, we release the full national report, which includes the regional breakdowns,
[25:21] in Melbourne and Sydney, which are interesting to look at because it does tell you how the segments of the markets are performing.
[25:27] And we have also the top 10 sales under the hammer over the past week, Brandon.
[25:35] So something to get hold of on my LinkedIn site.
[25:38] If you're looking for the latest National Weekly Auction Market Report, there's a QR code.
[25:43] You can scan that and get a PDF copy of the latest National Auction Report.
[25:51] So as usual, Brandon, we finish off with the best giveaway in property, and that's the My Housing Market, Infinity Housing Market Suburb Data App, the Suburb Data App.
[26:01] We talk, of course, here mostly in Capital City data.
[26:04] So obviously, if you're
[26:06] in the decision making process for property you want to know what's happening on a suburb basis well we provide that here uh if you're looking for that app here is a link to the app and also a qr code to scan that uh you need to get a password hey you know is there no such thing as a free lunch well maybe this is a free lunch almost and you get that from the good folks at infinity so um
[26:29] get onto that very popular MyHousingMarketInfinity suburb level data.
[26:36] It does show you what's happening on a suburb basis in every capital city...
[26:40] Sorry, in every suburb in Australia that has data.
[26:44] It's updated daily, so it's regular data.
[26:48] It is asking prices, so it tells you what agents and owners are pitching in terms of their prices for the property right here and right now, as I said, on a suburb basis.
[26:58] And it's not only for prices, but also for rent.
[27:03] So here's a screenshot of this handy little app, which you can put on your phone.
[27:09] We can filter it for price or rents.
[27:11] We can filter it for the capital city region or the outside capital city region.
[27:15] We're looking here at the Sydney capital city region.
[27:18] We filter it for Blacktown, which is a big suburb in Sydney.
[27:22] you can also look at houses, units or townhouses.
[27:26] So filter it there.
[27:27] And also for the number of bedrooms, does it get any better than that?
[27:30] Well, it does because not only do we give you the median asking price, which tells you what agents are pitching for their properties in that suburb, but it also gives you the low and the high.
[27:40] So it gives you a boundary between the extremes of high and low.
[27:43] in terms of what properties are being asked for in that particular suburb, and also the number of properties that are for sale.
[27:51] So we have 32 properties for sale in Blacktown with the median price of
[27:56] $1.75 million.
[27:57] And we can do exactly the same thing, Brandon, for the rental market.
[28:03] So this gives you the same breakdown for rents in Blacktown, same filtering options, the median, the low and the high and the number of properties for rent at the moment.
[28:13] Does it get any better?
[28:13] Well, it does because we can also offer some insights for investors that are looking for what the level of return on investment it is
[28:22] So for each of those regions, capital city and outside capital city regions, we can filter and also for units houses and townhouses, we can filter for the top 10 yields and of course yields are
[28:34] the annual return of current asking rents over the current asking price.
[28:39] So that gives you a good indicative insight into what return on investment is.
[28:44] So top 10 yields there on a suburb basis.
[28:48] We also give you the vacancy rate, the number of rental properties or properties are being a number of rental properties in the market at the moment for each of those suburbs and the number of properties available.
[29:00] for sale as well.
[29:01] And if you click on those hot links to the particular top 10, you also get a map of where these properties are.
[29:09] So you can actually say, hey, where is this place?
[29:12] Click on the link, it'll show you exactly
[29:14] where it is and what the surrounding suburbs are.
[29:17] So what a great little giveaway.
[29:18] Get a hold of that one.
[29:20] Get the password through infinity.
[29:22] And it's a great little toolkit for your decision-making on a suburb basis.
[29:28] So all good stuff there.
[29:29] Next week, we're going to look at the latest August home rents.
[29:33] Hot off the press, the August regional house prices.
[29:36] So let's look at regional house prices next week, which will be really interesting.
[29:39] And of course, as usual, the latest weekly auction results for the first week.
[29:44] in the official spring selling season.
[29:46] So if you've missed anything in this report, Brandon, you can scan the QR code and we'll give you a full copy of the presentation today.
[29:57] So how does that appeal to you, Brandon?
[30:00] Mate, that sounds amazing.
[30:01] I've got a few clients who reach out for the password, which I handily give out.
[30:07] Thanks.
[30:07] I had a couple of questions for you, Doc, regarding that presentation.
[30:12] Obviously, we look at Brisbane and we've seen huge growth.
[30:16] That report that you showed us saw units actually outperforming homes in terms of growth.
[30:21] What do you think is causing that?
[30:24] Well, I think it's just at the margin.
[30:26] I mean, there's no doubt that particularly Brisbane inner city has gravitated over recent years towards higher density living.
[30:32] You just have to go to Brisbane.
[30:34] You know, if you're a Brisbaneite, you would have noticed the big difference over the last five to 10 years in what the inner city in Brisbane offers.
[30:42] And it's sort of a...
[30:42] It's got a really great young vibe to it.
[30:45] A lot of professionals prefer that sort of high-rise living.
[30:49] Infrastructure's being placed, a lot of retail, a lot of services now in the inner city.
[30:55] And I think that's the growth, you know, the real growth in Brisbane is that and, of course, outer suburban properties.
[31:02] And, of course, established properties are also strong in the middle-ring suburbs of Brisbane.
[31:06] But that inner-city Brisbane unit market is just,
[31:10] really robust um and uh you know the the brisbane government the local government is also trying to expedite more development in the brisbane inner city because demand is so strong and i think full credit to brisbane because the infrastructure is sort of matching to a large degree what the demand is and it's very important to have that sort of inner city lifestyle um you know to match the high demand of uh
[31:35] particularly the higher density development.
[31:38] So I think that's one clear driver of Brisbane development.
[31:42] And we saw nearly 50% branded prices growth over the past year.
[31:46] So if you're a unit owner in Brisbane, you'd be feeling pretty good about things, wouldn't you?
[31:51] You're laughing.
[31:52] I'm a bit biased because I live pretty close to Brisbane.
[31:56] Having a look at auction clearance rates.
[31:58] Yeah.
[31:59] Obviously, Brisbane struggles when it comes to auction clearance rate compared to other cities, but their growth is so high.
[32:05] What is that?
[32:07] Well, in Brisbane, the auction is sort of a quasi private treaty sort of environment.
[32:13] So it's like Brisbaneites think, OK, we're going to sell the house.
[32:16] So the agent says, OK, let's go to auction.
[32:18] And it's like this entree into the main deal, which is...
[32:23] the private treaty, right?
[32:25] So it passes in, it doesn't pass in.
[32:27] It's not a big deal because it will sell and it's not reflective of the be all and end all in the selling experience because it will usually sell by private treaty if it doesn't sell by auction.
[32:38] So that's typically why we see these lower clearance rates, whereas in Melbourne, it is the be all and end all because the real focus is to get the property sold under the hammer.
[32:48] Same in Sydney.
[32:49] So when you go for an auction, you pay a lot of money, you pay an auctioneer, you pay a lot of auction expenses.
[32:56] So you're committed to a result under the hammer because that's the whole purpose is to get it out there, advertise it and to get a lot of interest in that particular property.
[33:07] So you can obviously get a higher price, lots of competition, people bidding against each other.
[33:12] It's a different scenario in Brisbane.
[33:15] you know, a bit more relaxed perhaps in terms of the agenda for selling property, and even though auctions are conducted.
[33:25] And look, this auction activity is around about 8% or 9% in Brisbane,
[33:30] Whereas Sydney, it's about 26%, 27% of properties go under the hammer.
[33:35] And in Melbourne, it's about 35% of properties, by and large, go under the hammer.
[33:40] So you can see it's a different culture and it doesn't necessarily impact
[33:47] prices as we typically see the relationship between clearance rate and prices.
[33:51] But having said that, when we go back a year, just over a year, Brisbane clearance rates were up around 70 and 80%, which was amazing because we never see those sort of numbers.
[34:02] But what it did reflect,
[34:04] was just the high demand for property at that time, because people were not taking a chance.
[34:09] If it was going to auction, hey, I'm not waiting for it to go to private treaty after the auction's passed in.
[34:14] I'm gonna grab this now.
[34:16] But it is just relative to that demand cycle in Brisbane, which is still strong,
[34:21] but it's not at that boom time level that we saw a year or so ago.
[34:25] So different culture, a different impact, but it is because auctions are a much smaller proportion of the market in Brisbane.
[34:32] And it's just part of really the process for that small proportion to eventually move into a, into a private treaty environment.
[34:44] Well, that does explain it very well.
[34:47] Great news all around for homeowners.
[34:49] Yes, it is.
[34:50] And, you know, here comes spring.
[34:52] I'm excited.
[34:54] Very excited.
[34:55] Well, thank you, Doc.
[34:56] I really appreciate it.
[34:57] It was awesome having you on.
[34:59] Yeah, we'll see you next week.
[35:00] See you next week.
[35:03] You're fucking gone.
[35:04] See ya.

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