Two years left in property growth cycle: John McGrath

Spring auction numbers are emerging in both Sydney and Melbourne, but the small spike is no serious test yet.

APM has around 570 scheduled listings this weekend in Sydney, up from the 430 last weekend.

In Melbourne there are 715 offerings, up from 646 last weekend.

Then the early September weekends will see around 520 and 520 offerings in Sydney.

It's about 700 and 800 auctions per weekend in Melbourne over the first two weeks.

Neither city is showing signs of listings surging well in excess of last spring's volumes.

The Sydney estate agent John McGrath told the Australian Financial Review he did not expect the market to change much in spring and summer, after it showed strength over winter.

“The indicators remain positive, with record-low interest rates, a solid economic growth cycle in play and renewed demand from both local investors and overseas buyers,” Mr McGrath said.

“I believe this market has at least two years left in its growth cycle before we see a plateauing.” 

However, McGrath said Sydney’s current rate of growth would moderate.

It would likely settle back at a more sustainable 5% to 10% per annum over the next two years, he suggested.