HOW have Australia’s different property markets fared during the pandemic?
Regional markets have been a major winner over the past year and a half according to Ray White Chief Economist Nerida Conisbee who said in 2020 Australia saw the highest level of net migration into regional areas ever recorded and this led to a significant increase in prices.“For decades, government policy has aimed to move people out of congested capital cities and into regional Australia. While this has had some success, it was nowhere near as successful as COVID,” Ms Conisbee said.“Since the start of the year, we have seen this price growth continue in regional areas, however capital cities have taken off far more quickly than they did in 2020. At the most extreme has been the change in price acceleration in regional New South Wales and Sydney.“Regional area growth has been far more consistent over COVID than capital cities. A quarter of suburbs that hit $1 million medians last year were in regional areas, ranging from Anglesea in Victoria to Redhead in Newcastle. Most of them were beachside.”Meanwhile, the prestige market has also seen significant changes since the beginning of 2020. Ms Conisbee said this time last year, there were 462 suburbs in Australia with median prices over $1 million. Since then, 106 additional suburbs have been added to this list, with most of them located in Sydney, south-east Queensland and Melbourne.“High-end property has done well during the pandemic. The drivers of demand for our most expensive properties have been consistent with the general market - very low interest rates and high savings rates,” Ms Conisbee said.“The other key feature of luxury property demand during the pandemic has been the accelerated growth in the highly sought after regional areas.”However, Ms Conisbee stressed that the rental market was the most adversely impacted by COVID.“While prices were hit a little in the early months of the pandemic, growth began again fairly quickly. Meanwhile, rental declines were far more sustained,” she said.“Nevertheless, the rental market has recovered in most parts of Australia, driven by better economic conditions and increasing wealth.“The areas that are seeing the strongest rebound are Darwin and Perth, both cities are heavily dependent on mining conditions which are booming. Canberra has also done well off the back of big increases in government employment. In sharp comparison are the apartment markets of Melbourne and Sydney.”Australia’s property auction market has fared well over the past year with momentum still increasing throughout July despite most of the country experiencing a lockdown at some stage. In July to date, the Ray White Group has kept the auction clearance rate above 75 per cent while average registered bidders and average active bidders have increased from last month at 6.4 and 3.6.
In Melbourne the strict lockdown will be over by this weekend but restrictions will still be in place for auctions which can now take place onsite. Many members of the Ray White Melbourne network have booked in auction campaigns that have come out of lockdown ready to go including 9 Fairview Ave, Cheltenham (pictured above).Ray White Cheltenham agent Angela Limanis said they were able to run open homes for two weeks before the city was locked down and she found buyers loved the all rounder appeal of the home.“We received enough interest before the lockdown came into effect to have the auction this weekend,” Ms Limanis said.“It’s different to your standard Cheltenham home as it has more of a retro vibe but it’s a good family home in a great location and is structurally sound which has really appealed to buyers as they won’t have to do anything to the house.”Nearby, fellow Ray White Cheltenham agent and director Kevin Chokshi said he has seen a spike in online enquiry for 2 Rosewarne Avenue since lockdown began and prior to that he oversaw more than 50 inspections through the home.“This property is something you don’t come across often. It’s on a great block in a really popular part of Cheltenham,” Mr Chokshi said.“The new train line starting from Cheltenham going to the airport which has just been approved will also be a 10 minute walk away so there is a lot of potential for both family buyers wanting to knock it down and rebuild and developers.”On the other side of Melbourne, Ray White Gladstone Park director Malek Younan is confident in taking 23 Scampton Cres, Tullamarine to auction this weekend after completing half a campaign in lockdown.“We launched the campaign 10 days before lockdown and now coming out we are hoping to be able to fit in some open homes in the last few days of the campaign while also keeping with restrictions,” Mr Younan said.“It was built over 40 years ago by the vendor and is a well loved family home that has drawn a lot of attention both online and onsite before lockdown.“We made a virtual inspection video prior to lockdown in case it happened so some of our buyers have seen that video but the majority saw the property in person before we closed down.” Online auctions have become a staple in Sydney and this weekend they will continue. Real estate agents across the city have been fortunate enough to still be able to serve customers in need through private inspections while the online auction method has been well refined in the country’s most populous capital city.This week marks the second Saturday of auctions being conducted off the back of campaigns run entirely through lockdown but that hasn’t slowed buyers down.Ray White Upper North Shore agent David Beveridge was hard pressed to choose which of his two auctions will be stronger with both attracting a lot of interest. In the morning, 12 Alvona Ave, St Ives is scheduled to go to auction and has been popular with families while 11A Knowlman Ave, Pymble (pictured at top) has received interest from young families and downsizers.Mr Beveridge said there is definitely a sense of urgency from buyers.“Having been through a lockdown last year, buyers don’t have that same fear that the market is going to come off,” Mr Beveridge said.“Now they know that the market is going to take off after the lockdown and the quality of buyers at the moment has been the best we’ve had all year.”Nicholas Makrinakis and Adrian Bonino of Ray White Green Valley have seen a similar trend in the market and are confident the online auction for 107 Falcon Circuit will also attract quality buyers. The Ray White Green Valley agents have overseen 30 individual private inspections and received 75 email enquiries which they called “phenomenal” for a three week campaign conducted entirely during the Sydney lockdown.In Leichhardt, renovators and builders alike are loving 110 Foster Street. Ray White Rozelle principal David Meadowcroft said there’s a lot for buyers to love about the 426.5sqm block and weatherboard cottage.“Most people have been attracted by the size of the block which is larger than average for the area. The proximity to the Leichhardt MarketPlace and light rail has also been another major draw,” Mr Meadowcroft said.“Interested buyers are split between people wanting to knock it down and rebuild and those who want to add value to the existing home by renovating.”
In Brisbane onsite auctions are still able to take place with restrictions but at 64 Stoneleigh St, Albion (pictured above) several buyers will still be bidding over the phone from interstate and overseas. Ray White Metro North principal David Treloar said the house ticks a lot of boxes for buyers including those looking to move to Queensland.“The people looking at this one want a new, contemporary home that’s family friendly and in a great location. We have been speaking to a few buyers who will be bidding sight unseen from Sydney and even Amsterdam,” Mr Treloar said.There will also be some auction action on Brisbane’s southside this weekend at 31 Eric Cres, Annerley. Selling agent and Ray White Annerley director Geoff Sellars said buyers were being drawn by the potential of the property.“It’s a nice character home in a great spot with lots of potential. There are well renovated homes all around it which has given buyers an idea of what they can do with the property,” Mr Sellars said.
In Adelaide, lockdown has ended but some restrictions are still in place. Ray White Port Adelaide agent Rick Schultz is on an auction hot streak this winter and not even a lockdown can slow him down. This weekend Mr Schultz has a standout auction at 67 Murray St, Albert Park (pictured above) and said buyers haven’t been deterred by the restricted market.“Despite South Australia’s lockdown, we’ve managed to have two weeks of open homes with double digits coming through each mid-week and Saturday open. The property has received several strong pre-auction offers so we’re all geared up and ready to go,” Mr Schultz said.Top Ray White Adelaide auction agent Stefan Siciliano will also have one to watch at55 Princes Rd, Greenacres. The home, built in 1965, is now being presented to the market for the first time in this century and has been popular because of the potential of the 793sqm block.
