News

Property market confidence gets shot in the arm as restrictions eased

26 May 2020

Coronavirus restrictions have been eased around Melbourne auctions and clearance rates have seen an immediate jump.

In a sign of some confidence returning to the housing market, Melbourne recorded an auction clearance rate of 70.1 per cent from its 102 auctions on the weekend.

The Victorian Government has lifted the restriction on auction attendances, currently allowing up to ten people to participate, with many hopeful that be lifted to 20 from June 1.

AMP Capital chief economist Shane Oliver said the auction results were off low numbers.

“It looks like confidence on the part of buyers and sellers has returned to some degree as auctions come back,” he told Domain.

While the number of properties for sale was low, Mr Oliver said that will tend to rise as auction clearance rates continued to improve.

However, Mr Oliver also told Domain he was still cautious given the state of unemployment, low immigration and high rental vacancy rates.

“A lot of Australians do still have jobs and they’re looking for property,” he said.

“They’re seeing mortgage rates are down to record levels.”

“But it remains to be seen whether that will translate into sales.”

Fiona Ansell-Jones is a selling agent at Marshall White in Stonnington and said further easing of restrictions at auctions would help selling property.

“We’re really conscious of turning away people and potential bidders because there are too many people at an auction,” she told Domain.

“It will be very helpful.”

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