News

Melbourne auctions abuzz to kick off 2021

18 January 2021

Buyers were out and about in force at the weekend in Melbourne, looking to splash the cash and secure a property early in the year in a buzzing auction scene.

Ray White auctioneer Kevin Chokski told Australian Financial Review it was very busy for this early in the year.

“This is the first time in my nine years in real estate that I’ve done an auction so early,” he said.

“Interest rates are so low that people are willing to pay a bit extra. A buyer is not going to walk away from a property that they love for an extra $100,000. That is the mindset.”

Home lending has surged to record highs in the latest November figures, with buyers looking to capitalise on the low interest rate environment and feeling more confident in the property market in general.

The COVID disruptions to the real estate market in Melbourne has caused a backlog of pent-up demand that is set to be released this year.

AMP Capital chief economist Shane Oliver said while demand is up, CoreLogic figures reveal the total number of homes for sale across capital cities is almost 18 per cent below the same time last year.

“It ended the year on a strong note and that strength has continued into the start of the year,” he told AFR.

“The house finance commitments – they are loans that have been approved – are at record levels, suggesting there is a lot of demand out there chasing houses.”

“Investor loans seem to be starting to kick off the bottom. Maybe investors are starting to come back.

“Whichever way you cut it, the strength in housing finance would suggest there is lots of buying pressure to come over the early part of the year.”

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