Residential auctions in Sydney and Melbourne recorded their highest clearance rates in two years in August, and this activity is expected to flow to coastal and regional growth centres up until Christmas.
According to data provider CoreLogic, combined capital cities clocked a preliminary clearance rate of 76.6% compared to 67.85 the previous week. This result is the highest combined capital city clearance rate since May 2017.
Sydney, with a clearance rate of 81.7%, Canberra (81.8%) and Melbourne, with 78.3% led the charge. Angus Raine, Executive Chairman, Raine & Horne, said the auction news is a continuation of the better times for property since the May Federal Election and the June and July rate cuts.
“Fears about the change of Federal Government forced many buyers and sellers into hiatus, along with the tighter lender environment. Consequently, the demand bucket filled to the brim over the past three years,” Angus said.
“The election result, the two rapid-fire rate cuts and a relaxing of bank lending have unleashed the dam of demand and buyers are streaming back into markets across Australia.”
Angus predicts the combination of more properties for sale as the weather warms up and strong buyer demand, augurs well for robust market conditions to Christmas. “I don’t expect the market to slacken in November with vigorous sales activity anticipated until the last Saturday 21 December.”
Angus continued, “The fantastic auction clearance rates and above expectation sales results will encourage many empty nesters to cash in on the tax-free capital gains they have built up in their homes over the last 20-30 years.
“Now is the time to downsize and we expect some of these cashed-up empty nesters to look at regional and coastal opportunities around Australia.”
Julie-Ann Manahan, Principal of Raine & Horne, Ocean Shores/Brunswick Heads is already seeing more enquiries from Sydney and Melbourne buyers. “It’s been phenomenal with large numbers of buyer groups at open homes and an increase in off-market sales,” Julie-Ann said. “We are enjoying an early spring market.”
The locations of Ocean Shores and Brunswick Heads which is ten minutes from Byron Bay and half an hour to Coolangatta is a major attraction for buyers, including downsizers, according to Julie-Ann. “We have two airports within a 30-minute radius at Ballina and the Gold Coast,” she added. “There is also a new hospital at Kingscliff that is sure to catch the attention of downsizers considering moving to this region.
Julie-Ann agrees markets on the Northern Rivers and Tweed Coast regions will enjoy strong spring market conditions up to Christmas. “However, we are anticipating healthy selling conditions to continue into January as holidaymakers from the cities relocate to our region for the summer holidays.