Australia Auction Market Shows Promising Record-breaking Response
According to an analysis from Core Logic, a total of 1287 houses were auctioned off last week which is much higher than the 884 listed for the previous week. Last week's clearance rate is significantly larger than the same period for 2020 at 60.7%.
Many market observers suggest that this will continue to rise over the coming months and weeks ahead. And there have been surges in certain areas and locations around Australia.
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Please see table below for showing clearance rate and auction properties this month via coredata.
Of the six major capital cities, Melbourne recorded the most number of auctioned off properties at 474 of 592 properties with a clearance 80.8%. Sydney came next with 400 auctioned off properties of the 449 properties.
Although Canberra recorded the highest clearance rate at 92.7%, the number of auctioned properties was only pegged at 59. Perth and recorded 75% clearance rate, while Brisbane recorded 74.6% of the 17 and 84 properties, respectively. Tasmania auctioned one property.
Now regarding why it might look this way we believe that due to the pandemic, people discovered that when you are living in apartments and buildings you do so for the social and community aspect.
Access to things like gyms, restaurants, bars clubs, and other areas of engagement and work have meant that really an apartment unit is just somewhere to rest your head at night or watch endless movies/series on Netflix.
Due to the pandemic forcing people to stay within their units, people became more aware that this would somewhat feel like living inside a cell and that Uber eats does not make up for having some open space such as a gym set, a pool or a backyard.
We mentioned this because the push to move from the suburbs has seen a big increase in outlying areas of both Sydney and Melbourne and to a smaller degree in Brisbane. Prices from some of our clients recent sales show increase over the last four months from $750,000 to just over 1 million dollars for the same property because it's 40 minutes from the city centre of Sydney.
It appears people are migrating away from dense areas and it may be not just for lifestyle but perhaps they feel the degree safer by being enclosed in large spaces.
Due to the fact that everyone has had to work remotely during Covid-19 pandemic wherever they were in a lockdown it can be said that work is performed just as well. This therefore, has a significant impact on lifestyle choices. Unless vaccines prove to be 100% effective and no further lockdowns occur, all up is good news.
If you're a property owner looking to sell and perhaps move a little further out yourself perhaps not so for owners of units/apartments in major cities but we will wait to see if this is true.
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending.