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Rate rise spectre spooks investors

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  • Rate rise spectre spooks investors

    Rate rise spectre spooks investors

    Sanna Trad | March 03, 2008

    THE likelihood of another interest rate rise, possibly as early as this week, spooked potential housing investors on the weekend, with poor clearance rates recorded in Sydney, Brisbane and Adelaide.

    Out of the 143 properties auctioned in Sydney over the weekend, just 94 were sold, for a clearance rate of 66 per cent, compared with the 186 that were sold in the city on the corresponding weekend last year.

    BIS Shrapnel managing director Robert Mellor said the volatile share market and fears over an expected interest rate rise was the likely cause of the weakness in the Sydney market.

    "I think people are being more cautious in Sydney, and that's the reason the market has had a very soft start," he said.

    "There's a lack of momentum in the market in Sydney, especially compared to Melbourne. That said, Melbourne had a lot more room for upwards movement."

    The housing market in Melbourne continued its strong start to the year with 629 of the 874 properties going under the hammer being sold, a clearance rate of 72 per cent.

    In Brisbane, the number of properties sold fell slightly compared with last week with 13 properties sold under the hammer out of 24 listings, for a clearance rate of 54.2 per cent, down from 55 per cent.

    The clearance rate across the city was down 8 per cent compared with the same period last year.

    The clearance rate in Adelaide fell 3 per cent from last week to 70 per cent and was down almost 20 per cent compared with this time last year.

    Of the 33 Adelaide properties that went under the hammer on the weekend, 23 were sold.

    The most expensive property sold at the weekend was a luxury two-bedroom unit in Sydney's CBD, which sold for $3 million. The cheapest was a one-bedroom apartment in Greensborough, in Melbourne's outer north, sold for $135,000.

    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx