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Investors Shrug Off Virus Negatives

Seven out of ten investors say the pandemic has had no impact on their intentions to buy real estate. A sentiment survey by Momentum Wealth reveals burgeoning confidence among property investors, with confidence highest in Brisbane and Perth.

Responses to the survey show the resilience of investor confidence, with almost 70% of respondents saying the pandemic had not impacted their plans to invest. A further 16% say the pandemic has increased their likelihood of investing.

Momentum Wealth general manager Jennifer Wakeman says Australians have a natural affinity for real estate, driven in part by its long-term performance. And buyers have benefited from stimulus measures aimed at reducing the economic impact of the virus.

“Job losses have largely been confined to a few industries and most of these jobs have since been recovered,” she says. “The strengthening economy has also led to many people being in a better financial position than was first predicted.”

Clearances Rise As Boom Continues

Capital cities recorded slightly higher clearance rates on higher volumes last weekend, building on the trend evident since Easter.

The combined capital cities had 2,448 auctions, which returned a preliminary clearance rate of 80.5%, according to CoreLogic’s Property Market Indicator. These results were higher than the previous week’s 2,199 auctions and preliminary clearance rate of 79.4%, which was revised down to 77% at final figures.

At the same time last year, only 30% of homes sold across 1,922 auctions, with confidence low as restrictions around onsite auctions and physical home inspections impeding activity.

Last weekend Canberra recorded the highest preliminary clearance rate at 87.4%, followed by Sydney with 84.8%, Adelaide 82.8%, Melbourne 78.1% and Brisbane 72.7%.

Melbourne saw the highest number of auctions over the week at 1,204, followed by Sydney with 913, Canberra with 112, Brisbane with 104, Adelaide with 81 and Perth with 30

Sales Of New Homes Up 90%

Australia is on the “cusp of a housing boom”, according to the CSales of new homes almost doubled in March, the second strongest monthly result since 2004, as buyers rushed to access the final phase of the HomeBuilder grant before the scheme ended.

A similar buying frenzy was recorded in December, which pushed the monthly sales volumes up by 92% – a near record, amid a scramble to get the full $25,000 HomeBuilder grant before that stage of the stimulus finished.

“This same effect was evident in March as households raced to get access to the $15,000 grant,” HIA economist Angela Lillicrap says. “HomeBuilder, combined with changing population dynamics and improving market confidence, led to strong sales through to the end of 2020.”

The reduced HomeBuilder grant finished on March 31, although the Federal Government has extended by 12 months the deadline for work to start on dwellings contracted under the program. The HIA says the extension will unleash an unprecedented national surge in housing construction, with every state booming above its previous peak