There’s strong demand for unique dwellings, but the RBA’s next rate decision will determine how successful sales will be in the biggest season of the year.
Auction volumes picked up for a second week across Australia’s east coast-dominated residential property market and the proportion of homes sold hit a 12-week-high, signalling the important spring selling season has begun.
The preliminary combined capital city clearance rate of 62.6 per cent was the highest in 12 weeks, in a market where agents said buyers were willing to compete for unique or high-quality properties. The diverging nature of the housing market was clear last week when developer Stockland, the largest seller of greenfield land lots, sold principally to middle-income earners, said it wasTwo days earlier private developer Beulah, the company behind the $2.7 billion Sth Bnk twin skyscraper project, Australia’s tallest apartment development, said it, principally to downsizers and people seeking larger apartments.
“Property historically has been a good hedge against inflation. At 50 basis points above where we are now, then we still have a situation where we’ve got real negative interest rates out there. It’s generally stimulatory towards the housing market when we see that.” “You would almost not advise vendors to put land on the market at the moment. People are not grabbing land opportunities like they were.”
The 348 Victoria Place house sold to a buyer who had only viewed it for the first time on Saturday morning before the auction.