Market Update – Property Focus

20/09/2011 5:06 am

August edition of the Blockbrief Monthly Update.

Economic indicators released in August were mixed. Australia's jobless rate as at July has increased to 5.1% as the economy lost 22,200 full time jobs, a result which was much weaker than generally expected. The ANZ Job Advertisements Series fell 0.7% in July, to be 8.3% higher than 12 months ago.

Building Approval figures, seasonally adjusted, rose 1% in July, after a fall of 3.6% in June 2011. Private sector houses approved fell 0.2% and other private dwellings, which include apartments, fell 1.2%, seasonally adjusted.

On 6 September, the RBA Board decided to leave the cash rate unchanged at 4.75%. The RBA statement observed that the global economy has been unsettled due to sovereign debt problems and weak economic growth in Europe and the US.

REITS (LISTED PROPERTY SECURITIES)

The S&P/ASX 300 A-REIT Accumulation Index rose 2.89%, outperforming the broader domestic equity market for the month. Overall, the S&P/ASX 300 A-REIT Accumulation Index lost 2.63% in the 12 months to August, outperforming the broader market.

The UBS Global Real Estate Investors Index (Total Returns) Hedged (A$) fell 4.79% in August, underperforming the domestic index. Over the 12 months to August the Index performed strongly, gaining 17.28%.

AUCTION CLEARANCE RATES

The National Auction Clearance Rate Improved to 51% in July from 50% in June.

The Sydney Auction Clearance Rate rose 1% to 54% in July.

The Melbourne Auction Clearance fell 1% to 53% in July.

The Brisbane Auction Clearance Rate rose 6% to 26% in July.

The Adelaide Auction Clearance Rate rose 10% to 41% in July!