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Low interest rates support Melbourne property market

By Jamil Allouche

The Melbourne property market has been one to watch for some time now and as November gets underway, this is showing little sign of abating.

Domain Group senior economist Andrew Wilson explained how the low interest rate environment is giving people encouragement to seek real estate in Brunswick and other parts of the city.

He made his comments as Australian Property Monitors (APM) released its auction clearance rate data for the weekend of November 1, with some impressive results.

Of the properties that went under the hammer, 80 per cent were purchased. This built on the success of the previous weekend when 1,558 properties were auctioned in the city.

The four-weekend average clearance rate currently stands at 76.4 per cent and APM believes the remainder of November will prove a testing time for the market.

Dr Wilson anticipates the cash rate will stay low for the rest of 2014, although there's a chance a further cut may be brought into force at the start of next year.

The official cash rate was lowered to 2.5 per cent in August 2013 and has remained at this all-time low ever since. The Reserve Bank of Australia is due to meet today (November 4) to make its next decision.

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