21st March 2022 / Jeremy Desmier: Market Update | 19 & 20 March 2022

Over 2,400 auctions were scheduled across the capital cities over the weekend, up 56.8 per cent compared to the previous week, due to the long weekend. The Domain Group reports that auction volumes are higher year on year this week, continuing the strong annual growth in national auction listings seen for the majority of the first quarter of 2022.

We enjoyed stunning Autumn weather in Melbourne over the weekend, and the Fletchers team was thrilled to achieve a strong auction clearance rate of 77 per cent. Whilst there were some quiet auctions as volumes have increased, many properties still attracted multiple bidders and strong competition.

In Balwyn North, the architect-owner four-bedroom home at 41 Riverside Avenue attracted five bidders on auction day. A unique mid-century modern home, it is well-located in the prestigious Riverside Estate and was sold under the hammer by Auctioneer Jeremy Desmier for $2,815,000.

The three-bedroom Art Deco home at 1/273 Warrigal Road in Burwood attracted a lot of interested throughout the campaign, with over 100 buyers making enquiries. Auctioneer Steven Zervas fielded bids from six parties, selling the home for an incredible $892,000.

Offering a classic configuration, the four-bedroom home at 5 Savanna Drive in Mooroolbark was an incredible opportunity for families looking to secure their future. Auctioneer Daniel Bolton was thrilled for both his vendors and the successful purchasers, with the home selling for $922,000.

Senior Property Consultant, Spring Chen had a busy weekend, with five auction campaigns over the weekend. Spring and the team were pleased to have the sunny weather continue on Sunday, with both 9 Abelia Street in Doncaster East and 2/44 View Street in Mont Albert selling in post-auction negotiations.

As the first month of Autumn wraps up next week, the REA Group notes that it is likely to be an upgrader's market this year. Remote work arrangements and the experience of lockdowns have seen many buyers seek larger homes and more space. And after the significant rise in housing prices, many existing homeowners are sitting on substantial equity. This combination is likely to add to strength in upgrader transaction volumes, especially as the shift in lifestyle preferences is still being compounded. The emergence of the Omicron strain of COVID has further prolonged remote work necessity.

As cases subside, this year will hopefully be less hindered by restrictions, and buyers and sellers who have held back until now will have the opportunity to transact unencumbered – providing another tailwind for activity.

The reopening of international borders and subsequent return of skilled migrant workers and international students is also likely to see increased demand for inner-city rentals. Rents in regional areas have surged while largely remaining flat or declining in inner-city locations due to pandemic-induced preference shifts. Almost two years after COVID-19 lockdowns first emptied city apartments, demand could be set to recover as life returns to CBDs.

Finally, Investor activity picked up significantly in 2021, and this is another reason why we could see increased demand for units. The proportion of enquiries to real estate agents from investors is currently at the highest level seen in more than two years. Investor mortgage demand has increased from a record low of around 20% of new lending to more than 30%, and with APRA modestly tightening credit conditions, investors may look to capitalise on rental recovery and the unit discount.

We look forward to a busy end to the month of March and the first month of Autumn next weekend, with a number of auctions booked in as the Easter break quickly approaches.

Results. It's a Fletchers thing.