Across Australia, real estate agencies are reporting a strong and encouraging start to calendar 2024. We are looking at two consecutive Super Saturdays with over 6,000 homes set to go to
auction across Australia. Buyer demand is keeping up with the high volume of property listings.

While Century 21 Perth reports properties placed on the market for sale are being snapped up
within an average of 14 days, Ray White on the Gold Coast reports over 100 properties have
transacted for a total of $110 million in the first half of February.

Results and the conditions in which they were achieved will vary regionally however February has
seen the highest clearance rates at auctions since 2021 with Ray White Gold Coast reporting a
100% clearance rate with an average of 12 bidders per property auction.

Today in Sydney, Horwood Nolan reported 25 auctions in the Canada Bay area with 21 properties
changing hands for a total of $48.506 million.

The elevated interest environment, the onset of mortgage stress across the country, and higher
cost of living have not dampened buyer demand nor asset values as was expected.

The chronic shortage of accommodation across the country has not only buoyed asset values but
has also seen sudden dramatic increases in weekly rentals, forcing many towards homelessness
while others enter the buyer market as they seek to escape the rental trap.

The increase in asset values across the housing economy means the substantial equity available
in the traditional family homes is stimulating empty nesters to down-size with significant cash left
over for lifestyle.

The typical trend here has seen interstate migration mostly from Victoria and NSW with buyers’
cash fuelling the SE Queensland market in particular.

The ongoing increase in net overseas migration is continuing to contribute to the chronic shortage
of accommodation.

Another stimulant in part is market speculation with off-the-plan pre-sales seeing a comeback
after a few years of inactivity and lack of buyer confidence.

The cocktail of increased overseas migration, expectations that the RBA will reduce the Cash Rate
sooner than anticipated together with impending tax relief and wage increases will continue to
add fuel to the fire.

The proof will be in the pudding – let’s see what the remainder of 2024 brings.

For comparison, take a look at our late 2021 market review: In JP’s Kitchen — LINK Commercial Mortgages  (linkcm.com.au)

Contact LINK today if you wish to discuss financing options that may assist you to maximise the return on your commercial, industrial, or residential property investment.

Disclaimer

The information in this article is of a general nature and is not intended to address the circumstances of any particular individual  or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this  article is accurate at the date it is received or that it will continue to be accurate in the future.