News

June 20th | Clearance Rates Released for Five Capital Cities, Minimum Wage Increased Nationwide, Victoria Housing Market Still Promising

On June 20th, there were a total of 440 properties participating in auctions in Sydney, with 266 auction results reported. Out of these, 213 properties were sold, resulting in a clearance rate of 63%. The total value of the auctions amounted to AUD 170,050,000, with a median price of $1,200,000.

On June 13th, there were 449 properties participating in auctions in Sydney, with 259 auction results reported. Out of these, 212 properties were sold, resulting in a clearance rate of 70%. The total value of the auctions amounted to AUD 136,527,500, with a median price of $1,177,500.

In Melbourne, on June 20th, there were 480 properties participating in auctions, with 313 auction results reported. Out of these, 216 properties were sold, resulting in a clearance rate of 62%. The total value of the auctions amounted to AUD 140,898,499, with a median price of $799,000.

On June 13th, there were 410 properties participating in auctions in Melbourne, with 272 auction results reported. Out of these, 176 properties were sold, resulting in a clearance rate of 57%. The total value of the auctions amounted to AUD 120,357,201, with a median price of $825,500.

In Brisbane, on June 20th, there were 51 properties participating in auctions, with 26 auction results reported. Out of these, 15 properties were sold, resulting in a clearance rate of 52%. The total value of the auctions amounted to AUD 8,204,000, with an undisclosed median price.

On June 13th, there were 32 properties participating in auctions in Brisbane, with 23 auction results reported. Out of these, 17 properties were sold, resulting in a clearance rate of 68%. The total value of the auctions amounted to AUD 7,270,500, with an undisclosed median price.

In Adelaide, on June 20th, there were 24 properties participating in auctions, with 9 auction results reported. Out of these, 6 properties were sold, resulting in a clearance rate of 60%. The total value of the auctions amounted to AUD 4,109,000, with an undisclosed median price.

On June 13th, there were 28 properties participating in auctions in Adelaide, with 13 auction results reported. Out of these, 8 properties were sold, resulting in a clearance rate of 53%. The total value of the auctions amounted to AUD 2,339,000, with an undisclosed median price.

In Canberra, on June 20th, there were 24 properties participating in auctions, with 20 auction results reported. Out of these, 16 properties were sold, resulting in a clearance rate of 80%. The total value of the auctions amounted to AUD 10,121,500, with a median price of $803,000.

On June 13th, there were 25 properties participating in auctions in Canberra, with 23 auction results reported. Out of these, 16 properties were sold, resulting in a clearance rate of 70%. The total value of the auctions amounted to AUD 9,241,000, with a median price of $755,500.

In Australia, the minimum wage is set to increase again! Iain Ross, the Chairman of the Fair Work Commission, announced that the minimum wage for full-time employees will be raised by $13 per week to $753.8 per week, representing a 1.75% increase.

Different industries will implement the salary adjustments at different times. The education and healthcare industries will begin the adjustments from July 1st this year, while the construction, manufacturing, and other industrial sectors will start from November 1st. The entertainment and service industries will have a delayed adjustment, scheduled for February 1st next year.

This decision has faced opposition from many employers who believe that freezing wage increases would help preserve more job positions in the context of the Australian economy being severely impacted by the pandemic. However, Chairman Ross disagrees with the employers’ arguments, stating that freezing wage increases would lead to a decline in actual income for workers, which would be unfair, particularly for low-income families.

Nevertheless, not only employers, but also the Australian Council of Trade Unions have voiced their concerns. The difference is that the Australian Council of Trade Unions considers the increase to be too small and hopes for a 4% raise.

It’s worth mentioning that as of July last year, based on the updated 2018 minimum wage standards ranking by the OECD, Australia had the highest minimum wage in the world, surpassing other countries in the top 10 by nearly double. This ranking didn’t even include the 3% increase from last year. Considering the 3% increase from last year and the recent increase, Australia is undoubtedly far ahead of other countries.

Moving on to the housing market, the latest news states that despite a decline in immigration due to the pandemic, there is still a shortage of housing supply in Victoria. The state is the only one in Australia facing a housing supply shortage. According to a report by m3property, a consulting firm, the federal government had predicted an 85% decline in immigration from 2019 onwards, leading to housing supply shortages in various states. However, Victoria has defied expectations, and there will be a housing shortage in 2021.

Jennifer Williams, the National Director of Research at m3property, stated that they expect the housing supply in Victoria to remain insufficient for the next three years. The shortfall may start to narrow in the middle of 2021 but will expand again in early 2022. At that time, population growth is expected to recover to pre-COVID-19 levels.

Similar to Sydney, Melbourne’s real estate market is primarily supported by a large number of new residents. Therefore, the closure of borders has had a significant impact on both regions. While overseas migration is an important component of growth for all states, it is not the only factor. In Victoria, there were 122,200 new residents last year, including 75,600 new immigrants.

Comparatively, New South Wales has a higher dependence on overseas migration. Out of the net increase of 90,900 residents, 70,500 were foreign immigrants, but there was also a loss of 22,400 residents to other states.

Williams also pointed out that while housing supply in Victoria remains insufficient, it will be influenced by other factors as well.

Read More >>