COVID-19 Impact and Weekly Property Clearance – 28 March 2020

– Prime Minister Scott Morrison issued an Auction and Open House Inspection Ban on Tuesday evening, coming into effect from midnight Wednesday 25 March 2020.

– This auction and open for inspection ban put a ‘NO’ sign on more than 2,700 properties in Melbourne for next three weeks which means no public open inspections and onsite auctions. However, private one-on-one inspection is still allowed.

– This weekend was the first round of online auctions. Though some vendors advised their agents to bring auctions forward before the ban came into effect, some pulled properties back given the current COVID-19 uncertainty, some other vendors still need to sell their properties via online auctions thanks to technologies.

– Though some buyers pulled back as well due to the risk of job losses and income shrinks, some other buyers still have strong purchasing demands.

– In following three weeks or perhaps even longer time, market may not experience sharp price downturn. However we will see lower volume and quieter market activity. The price may halt at current or a bit lower level (4% – 8%).

– If COVID-19 not under control in next 1-2 months and unemployment rate soaring, we may see further drop down on market price of 10% – 12%.

View More COVID-19 Impact and Weekly Property Clearance – 28 March 2020

Weekly Property Auction Clearance – 21 March 2020

– Melbourne’s property market this weekend has slightly higher number of auctions.

– Due to fears and pressures from COVID-19 pandemic, however, this week’s auction clearance dropped from 70% range to 60% mark, 66%, 62%, and 65% from all three sources.

– The COVID-19 pandemic effect had been observed in both Sydney and Melbourne, the two largest property market nationally, and we believe it will continues spreading in next one or two months.

– The winter may not come yet, but the summer time for the property market will likely end sooner than expected this year.

View More Weekly Property Auction Clearance – 21 March 2020

RBA Emergency Rate Cut and COVID-19 Impact on Property Market

– During RBA’s emergency meeting held on 19 March 2020, decided to apply another interest rate cut of 25 basis to a new record low of 0.25%, providing two interest cuts in less than 3 weeks.

– The lowest Australia Dollar since October 2002 gives positive effect on property market, but given the current situation, very limited. It may help prevent the market fully back into down trend, but has less momentum to push the price up on the other side.

>> With the COVID-19 becoming a global crisis, in both health and financial sectors, most investors will become more conservative on following investing activities.

>> The plunges of global stock markets also put investors with less bullets they can use on property market.

>> Low dollar value will help on education sector, attracting more overseas students who may rent or buy properties. However current travel ban and potential shutdown of schools and colleges will put a break on their property investing plans.

– When COVID-19 crisis is over, hopefully before next Spring:

>> If only minimum increase on unemployment rate which means most people hold their jobs and incomes, the market will come back to the up trend. With government first home buyer stimulus, the market continues with more first home buyers jumping in.

>> If unfortunately significant portion of employees lost their jobs during this time, the low- and medium-range market will experience a hard time at least by the end of next financial year.

>> High end market normally has minimal connection with unemployment rate. However recent catastrophic plunges happened across all major stock markets globally and damage put on global business and tradings, will all affect how much money those high-end property buyers can use in their purchases.

>> High end property market will be on a case-by-case basis. But still the activity level will be no comparison with what it has before COVID-19 burst.

View More RBA Emergency Rate Cut and COVID-19 Impact on Property Market

Australian Market Overview and Weekly Property Auction Clearance – 14 March 2020

– Melbourne’s property market came back from last week’s long weekend holiday, with around 1,000 properties went under the hammer.

– This week’s auction clearance was a mixed result, 72%, 68%, and 75% from all three sources, indicating the property market started to taking the effect from fears and pressures from COVID-19 national pandemic situation.

– Australian and global stock markets are on fast down tracks. Australian dollar dropped to its lowest in last 11 years. Economy slows down significantly due to the pandemic outbreak.

– The recent uptrend of property market may see a slowing down or even halted in next few weeks. In next 3-6 months, the vendors will gain the similar feelings that they had in 2017-2018.

– However, a quick look at China’s situation, we will believe once COVID-19 is under control, with government further stimulus on economy, it is highly likely to see the property market will start to pickup its pace and back to the uptrend.

View More Australian Market Overview and Weekly Property Auction Clearance – 14 March 2020

Melbourne Weekly Auction Clearance – 07 March 2020

– Due to the Labour Day long weekend, the number of auctions dropped significantly in Melbourne with less than 400 properties under the hammer.

– The results for Melbourne were 70%, 69%, and 75% from all three sources. The drop of rates were from long weekend and possible adverse impact from the virus outbreak.

– Sydney’s auction numbers were lower than previous week’s one as well, but still scored a 80% preliminary clearance.

– There is no double that market is in uptrend. However how much the virus outbreak will affect the property market, especially the second hand property auctions, remain unknown.

– If the virus goes beyond the control and become an epidemic issue nationally, the fear of the risk of potential infection may prevent buyers attending open for inspections and auctions, bringing more pressures on second hand properties.

– An epidemic level spread may also stop people from going to works, which also stop buyers to spend their budgets on houses.

View More Melbourne Weekly Auction Clearance – 07 March 2020

Melbourne Weekly Auction Clearance and February Property Market Overview- 29 Feb 2020

– Melbourne’s property market has survived from its second first major auction test in 2020, with around 1,400 properties went under the hammer.

– There was no doubt that this week’s auction clearance was a boom time result, firmly standing above 70%, 79%, 77%, and 81% from all three sources.

– Corona virus outbreak start to impact on building and construction industry, especially in its supply chain. Lack of materials and delay of time will further lead to the increase of property price.

– In the past February, the whole nation experienced a 1.1% surge on house price index. More properties on market now and the demand from buyers are even stronger.

– Media’s expectation of another interest cut from RBA in its tomorrow monthly meeting is high. However we are conservative over this topic, as there is no sign of better economy and the risk of another round of property bubble is on the fringe.

View More Melbourne Weekly Auction Clearance and February Property Market Overview- 29 Feb 2020

Melbourne Weekly Auction Clearance – 22 Feb 2020

– Melbourne’s property market has not only survived from its first major auction test in 2020, with 1,000 plus properties went under the hammer today, but also obtained a beautiful score in the test.

– This week’s auction clearance was firmly stood above 70%, 80%, 79%, and 79% from all three sources, observing no declining on figures though extra 50% more homes went into this week’s auction.

– Following home buyers’ steps, investors are starting to come back into the market with some confidence on market conditions and lending criteria

– There is no doubt that Melbourne’s property prices are now on fast track moving upwards. With more properties sold hundreds of thousand dollars above the reserves.

– The only question is how long this heat will last this time? The national unemployment rate rose from 5.1 to 5.3 per cent in January and wage growth remains low, which put more pressures on housing affordability.

– The next auction weekend on 29 February will be another major test with 1,386 properties scheduled to go to auction across Victoria.

– More data coming out on the government’s 5% deposit schemes, and for those interested you can find more details inside.

View More Melbourne Weekly Auction Clearance – 22 Feb 2020

Melbourne Weekly Auction Clearance – 15 Feb 2020

– Both Auction Volumes and Clearance continue climbing up.

– The volume was much higher than previous week but still lower than the same time last year. Combining with less number of listings, the market will get hotter in this Autumn season.

– This week’s auction clearance was higher and firmly stood above 70%, 81%, 77%, and 79% from all three sources.

– A 46 sqm garage in Albert park was sold at $645,500. 7 bidders with 65 bids pushed it $215,500 above $430,000 reserve. The 90-year old owner bought it for $8,000 in 1980s. The $14,000 per sqm price is also well above the area’s $10,000 per sqm price mark.

– With the government’s 5% deposit schemes support and positive lending criteria, A recent survey shows more than before first home buyers are now considering to purchase their first home within 5 years.

View More Melbourne Weekly Auction Clearance – 15 Feb 2020

Melbourne Weekly Auction Clearance – 08 Feb 2020

– Results started picking up as it came into the second auction week in 2020, both in volume and clearance.

– The volume stand on similar level as the same time last year, whilst the auction clearance was much higher and back to 70% and above, 80%, 74%, and 78% from all three sources.

– Federal’s 5% First Home Loan Deposits schemes had 3,000 potential buyers registered in January. The remaining 7,000 slots was released on 1 February 2020. To further support first home buyers, an additional 10,000 will be released on 1 July 2020.

– Total of 20,000 5% deposits scheme benefited buyers and potential further interest cut by the end of this financial, will provide positive stimulus to the property market.

– However, global economies are weak and may further been affected by recent coronavirus break out. All of which will impose uncertainty on the property market in 2020.

View More Melbourne Weekly Auction Clearance – 08 Feb 2020

Melbourne Weekly Auction Clearance and RBA Interest Decision – Feb 2020

– This is the first auction week in 2020, though some auctions or sales happened in a week before

– As the holiday season was just over, not many properties were put on for auction this week. Still the volume was higher than the same time last year. So did the auction clearance as well

– Given the small volume for this weekend, the auction clearance result was weighted lower than usual, which are 69%, 65%, and 72% from all three sources

– The property market starts getting back, with a much faster pace. 1.2% increase in January 2020 and 5.8% up in Q4 2019. The price in Melbourne has already reached previous peak and passed

– Reserve bank in today’s first meeting in 2020 decided to keep the interest rate unchanged at 0.75% but is considering the possibility of another cut in mid 2020

View More Melbourne Weekly Auction Clearance and RBA Interest Decision – Feb 2020

Melbourne Weekly Auction Clearance – 14 December 2019

– It is the last auction weekend for 2019

– Though more properties on the market this week, auction clearance was higher, continuing standing robust above 60% and 70% for the 31th and 22th consecutive weeks respectively, with 74%, 73%, and 79% from all three sources

– Australian housing market is strong but the overall economical conditions are not promising

– Reserve bank is considering to drop the interest rate to 0.25% by April 2020 and there is possibility on a QE round as well

View More Melbourne Weekly Auction Clearance – 14 December 2019

Melbourne Weekly Auction Clearance – 07 December 2019

– It is the last major auction weekend and the auction volume will go down as towards Christmas and New Year

– Though more properties on the market this week, auction clearance was higher, continuing standing robust above 60% and 70% for the 30th and 21th consecutive weeks respectively, with 78%, 74%, and 79% from all three sources

– Australian housing market is strong but the overall economical conditions are not promising

– Reserve bank is considering to drop the interest rate to 0.25% by April 2020 and there is possibility on a QE round as well

View More Melbourne Weekly Auction Clearance – 07 December 2019

Melbourne Weekly Auction Clearance – 30 November 2019

– Number of auctions is at healthy level, just below 300 higher than previous week

– Though more properties on the market this week, auction clearance was higher, continuing standing robust above 60% and 70% for the 29th and 20th consecutive weeks respectively, with 77%, 74%, and 77% from all three sources

– Forecast on 2020 Australian Property Market are positive, looking from 2% up to 11% increase nationally.

– IL Visual would like to see a 3% – 6% mild increase nationally with Melbourne around 5% – 8% up. If price goes too fast in first half of 2020, we may see another intervention from the government.

View More Melbourne Weekly Auction Clearance – 30 November 2019

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