A 61% clearance rate over the long weekend from only 190 offerings is fairly symptomatic of the current market. There were also nearly 500 private sales – this is more encouraging. We are still seeing reasonable turnover in the market place, but much of it now is dependent on good negotiation and assessment skills.
Even good agents who consistently work in the market can be fooled by fickle purchasers. A Northern suburbs flat that should have had excellent competition by multiple investors failed to receive a single bid on Saturday, even though the agent thought he had multiple interest. However, I have no doubt this property will probably sell very quickly if the vendors have a reasonable expectation.
No matter the state of the market, people will be born, pass away, move, get married or simply want a change of scenery. Although we are in a “buyers” market, our enquiry levels of the past three months show us that not only are investors flooding back to the market, owner occupiers are also creeping back in.
Petrol prices will rise, interest rates will go up and down and steady, there will be higher taxes and governments promising us lower taxes, but one thing is sure, people in Australia will always want to buy property. We are expecting one million new residents over the next 12 years and these people will need a further 380,000 dwellings to house them. In my opinion long term capital growth for property is as close to a forgone conclusion as you can get.
Ian James
