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International borders open today, how will that affect the property market?

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Hi ,

The clearance rate climbed back to 80% on a high volume weekend of 952 auctions.  757 properties sold (563 at auction and 194 before auction), 195 passed in and there were an 180 additional private sales.  These numbers demonstrate confidence in the market from both buyers and sellers however some agents are reporting an increase in properties passing in with one or two bidders participating in the auction but immediately selling after.  It is worth noting these properties are still listed as ‘sold at auction’.

With the international borders opening today many questions are being raised as to how this will affect the property market.  Realestate.com.au have shared data which demonstrates that offshore searches from Hong Kong, Japan, Singapore, China and Malaysia have increased by 13% this year so far.  This number is expected to continue to rise.

The latest figures from the FIRB show that for the 2019-2020 period, Victorian sales to offshore buyers dropped to 2% of total sales with comparison in years previous to this showing the rate to be as high as 30%. With the unemployment rate for the country to drop to as low as 3% this year, it is predicted that Australian businesses will soon be looking to recruit overseas for skilled workers.  The CBD market is also expected to see some increased property activity with international students returning.  Overall, I am expecting this to increase buyer demand in Australian capital cities (particularly Melbourne and Sydney) and surrounding regional towns as the government, no doubt will be looking at population growth as one aspect to assist in the economy recovery from the impact of Covid.

101 North Road, Brighton went to auction over the weekend with a large crowd in attendance.  The property is a dated but very liveable single level, three bedroom, two bathroom with a double garage home with no shared driveway.  The entry level property was in demand from both young families and downsizers.  The property was quoted $2,000,000 to $2,200,000 prior to auction and attracted bidding from four buyers.  There were no doubt other buyers attending the auction that did not put their hand up.  The property was announced on the market at $2,350,000 and sold for $2,800,000 under the hammer achieving $450,000 above reserve.

Have a great week.

Kim Easterbrook

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