The expected border reopening at the end of the year will further drive demand and keep prices high
In Sydney and Melbourne, demand for property delivered the highest September clearance rate on record and more than AUD1 billion (USD725.8 million) a month in stamp duty for the past four months, reported 9News.
Residents might see an end to super-sized mortgages, and possible measures could include limiting how much people can borrow by calling for a larger deposit.
Listings have been rising continuously, with auctions expected to go through until Christmas this year.
Sydney recorded a weekend clearance rate of 85.3 percent in September, a jump from the 83.9 percent recorded in August. This is also significantly higher than the 71.4 percent reported in September last year.
According to My Housing Market, Canterbury Bankstown saw the highest weekend clearance rate over September at 91.7 percent, followed by the Upper North Shore at 90.8 percent, and the Northern Beaches at 88.7 percent, despite strict lockdown regulations.
A clearance rate above 80 percent was actually reported across all regions.
Additionally, the lower north region registered the highest weekend median auction prices for houses in September at AUD3,097,500 (USD2,248,165). All regions were over AUD1 million, except for the west at AUD973,500.
Listings have plummeted due to lockdown, but the high clearance rates and 6.3 percent increase in auction prices have delivered stamp duty that is supporting the state government’s COVID-19 recovery plan expenditure.
Revenue New South Wales (NSW) figures show more than AUD1.1 billion in stamp duty was collected in August and in July, while almost AUD1.2 billion was paid in June and over AUD1 billion in May.
Dr. Andrew Wilson, chief economist at My Housing Market, told 9News, “Auction numbers have risen sharply over recent weekends with listings set to surge by at least 50 percent over the remainder of spring – and higher if outdoor auctions are allowed again.”
“The prospect of up to 10,000 homes going under the weekend hammer over the next three months will be welcomed by buyers currently constrained by stock shortages,” he said.
Dr. Wilson suggested that the property market will kick off in 2022, particularly owing to the reopening of borders that will drive higher demand.
Alex Pattaro, NSW chief auctioneer at Ray White, said that there are no signs property prices will back down due to the low-interest rates and strong demand. He expects demand to be fueled further and prices to remain high once borders open, as expats will return home and international and domestic movements become active again.
“Auctions typically dry up early December but we anticipate auctions to run all the way to Christmas,” Pattaro said.
Navigating Malaysia’s real estate maze in the age of rising rates
Rising interest rates and housing affordability concerns weigh on Malaysia’s property market amidst a weaker growth outlook
From slump to stability: Is china’s housing market on the road to recovery?
China’s housing market finally recorded growth in the first quarter. But market analysts say it’s too soon to talk of a recovery despite positive signs
Mongolia’s capital at a crossroads: Ulaanbaatar’s rapid growth sparks urban planning dilemmas
Ulaanbaatar’s housing boom has exposed planning deficiencies within unprecedented growth
Meet the dynamic duo putting waste to work in Indonesia
Indonesian entrepreneurs Ovy Sabrina and Novita Tan have made a meaningful mark with their firm Rebricks