Ocean views, sought-after schools and hardly a property for sale in sight. Some of Sydney’s most tightly held suburbs had only a handful of sales within the past year.

The number of Sydney properties for sale plummeted amid the market downturn and economic uncertainty caused by rising interest rates, further reducing supply in areas with already low turnover – such as prime locations and smaller suburbs.

Waterfront Watsons Bay, Kirribilli and Whale Beach, where houses are in limited supply to begin with, were among more than 80 Sydney suburbs where five or fewer houses traded over the year to March, Domain data shows.

House sales were also limited in similarly small prestige suburbs like Point Piper, Darling Point and Tamarama, which each had between six and 12 transactions.

However, even areas with more housing, such as Bondi Beach, North Manly, Narrabeen and Brighton-le-sands, were among more than 370 Sydney suburbs where house sales slumped below 50, the benchmark used by Domain research to calculate a suburb’s median price.

As were middle ring suburbs like Summer Hill and North Epping, and outer suburbs like Mount Kuring-Gai and Camden.

For apartments, South Coogee, Clovelly, Millers Point, Enmore and Willoughby, were among the suburbs with limited sales.

It comes amid a drop in homes for sale, as sellers hesitate amid falling prices and rising interest rates. While prices have now been rebounding for several months, the number of homes listed for sale in May, was still down 20.7 per cent annually.

Ray White’s head of research Vanessa Rader said properties in prime locations, whether that was a waterfront or beach side position or a family-friendly suburb with good schools, were traditionally tightly held.

“These are typically pockets that have some kind of geographic advantage. You can’t just go recreate that too easily,” she said.

“If someone is selling an asset in these locations, where are they going to move to,” she said, adding this had become a greater concern amid low supply levels.

Rader said would-be sellers held back as prices declined. That then reduced the options for buyers, further deterring homeowners from selling, as they feared they would not find a suitable home to move to.

“It’s hard to find somewhere to buy, and if you have to go into the rental market, the vacancy rate is at a longtime low,” she said.

Uncertainty about the property market and broader economic outlook was also deterring sellers, as was the increasing difficulty of refinancing.

Eastern suburbs agent Ric Serrao, principal of Raine & Horne Double Bay, said traditionally tightly held suburbs had become even more so.

“There’s a percentage of clients who are opportunistic and when they feel the market prices are not on their side they just don’t list,” he said.

Limited supply increased competition for available properties, putting a floor under price declines, and supporting the recent rebound.

“How can something go down, when every time you’ve got a property you’ve got 10 to 15 people turning up,” Serrao said.

It was a similar story in the northern suburbs, where Pello Northern Suburbs principal Michael Dowling has seen listings become even fewer in low turnover suburbs like Denistone and East Ryde, which recorded 40 and 38 house sales, respectively.

“[East Ryde] is a very family orientated area, one of the areas in the Ryde district where all the neighbours seem to know each other … and there’s a lot of older people who have been there since the dress circle estate was built,” he said.

The area was popular with upgrading families from the north shore and inner west, seeking a comparatively more affordable house, in a family-friendly area and a central location.

Deciding to leave such a suburb behind is not easy, as East Ryde sellers Mark Khoo and Andrea Wong know, having recently listed their five-bedroom house to relocate closer to family.

They purchased one of the suburb’s original estate homes 18 years ago, from the property’s first owner, and later rebuilt on the block.

“East Ryde has been perfect for us raising a young family, it’s a very central location, close to schools, shopping centres and amenities, we’ve got lots of lovely neighbours, a strong sense of community and there’s lots of surrounding greenery,” he said.

“It was a difficult decision to decide to sell, but the market seems to be in a healthy state,” he said, adding there had been a strong level of interest so far.

“I think this reflects that it’s a sought after area with not much turnover.”

Dowling added that several months of price growth had given buyers and sellers more confidence to transact.

While listing volumes were still low, there had been a recent uptick in home appraisals across the northern suburbs, which could lead to an increase in homes for sale in three to four months time.

Source : TheSydneyMorningHerald

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Thailand’s political deadlock is turning potential homebuyers cautious in Southeast Asia’s second-largest economy, posing risks to the property market as some 50,000 flats are likely to be launched this year, analysts say.

“The market is currently slow but quite stable in terms of supply and demand as local buyers are now adopting a more wait-and-see attitude, rather than making a decision,” said Wittaya Dave Apirakviriya, general manager of ThinkOfLiving.com and DDproperty, a unit of proptech group PropertyGuru.

“This is due to the current political situation as we are still in the process of forming a new government.”

Thailand’s political situation is in a bit of flux as Pita Limjaroenrat, the leader of the Move Forward Party that won the most seats in the May election, has been thwarted twice in his attempt to form a government by conservative members of the senate, most of whom have been appointed by the military junta. In another setback, the Constitutional Court has decided to proceed with two cases against Pita for allegedly violating election rules.

Supporters of the Move Forward Party hold a portrait of party leader Pita Limjaroenrat during a protest in Bangkok on July 29, 2023. Photo: AP Photo

To break the deadlock, Move Forward said it would give way to coalition partner Pheu Thai to try and form the government instead. It remains to be seen, however, if the less liberal Pheu Thai will be able to convince members of the senate and assume power after parliament cancelled plans to elect a prime minister on Friday and said a new date would be set.

The political impasse is impacting the property market as real estate stakeholders expect the new government to implement measures to boost the market, Wittaya said. The previous government cut fees for registering mortgages and transferring ownership from this year until the end of 2025. Extending these measures would help the property market, he added.

Pita’s PM bid is over, says Thai deputy speaker, as the country braces for more turmoil

Real estate stakeholders would like the government to further ease foreign property ownership laws, including allowing foreigners to own landed homes but limiting it to 20 per cent outside Bangkok or luxury villas in beach towns, where the market caters mostly to overseas buyers, according to Peerapong Jaroon-ek, founder and CEO of Origin Property.

Before the pandemic, foreigners accounted for a quarter of all property sales in Thailand, with Hong Kong-based buyers contributing to as much as a third of all purchases from 2018 to 2022, according to official data.

“Currently we see an unclear picture of the political situation, including stimulus measures for the property market and other economic activities, but we believe that we will have a more thorough outlook and understanding after we have a clear political picture and what’s driving the country’s economy,” ThinkOfLiving.com’s Wittaya said.

Real estate is a major driver of the Thai economy, accounting for about 10 per cent of the gross domestic product in 2022, according to a study in May by the Bank of Ayudhya, Thailand’s fifth largest bank.

Before the coronavirus pandemic, developers enjoyed a mini boom due to demand from foreign buyers. But when travel was disrupted in 2020 because of the pandemic, cutting off a vital source of buyers, developers began offering huge discounts and threw in freebies such as cars, hotel and restaurant vouchers and even transfer fees to drum up sales.

The current political uncertainty is likely to further weigh on the property market, as some 50,000 flats are likely to be launched this year in Thailand, slightly more than the 48,700 units last year, according to CBRE.

Thai developers are also likely to launch 35,000 landed units this year, nearly the same as the 34,364 launched in 2022. Developers are also forecast to offer 1,200 luxury and super luxury homes, nearly the same as the 1,218 units in 2022, CBRE added.

The political uncertainty will only have a short-term impact on the property market and investor sentiment, said Artitaya Kasemlawan, head of residential sales project at CBRE Thailand.

Real estate stakeholders would like the Thai government to further ease foreign property ownership laws, including allowing foreigners to own landed homes, an analyst said. Photo: Shutterstock

“The current deadlock will have minimal impact as it has little effect on day-to-day business or cause changes in real estate policy,” Artitaya said. “Any impact on Thai real estate is usually a result of what’s happening in the economy rather than in politics.”

Apart from the political drama, there are several reasons for local and foreign buyers to consider investing in Thailand, according to Kashif Ansari, co-founder and group CEO of Juwai IQI.

For example, average rental yields range between 4.3 per cent and 6.7 per cent in Bangkok, Pattaya and Phuket, he said. This compares with Hong Kong’s net annual return yield of less than 2 per cent.

“Developers have reduced the supply of new units in each of the past four quarters,” Ansari said. “The share of new listings sold in each quarter has nearly doubled to more than 40 per cent as a result. Prices are climbing slowly.”

The Thai property market remains fundamentally sound despite the current political challenges as the country continues to provide a safe and stable environment for foreign residents and investment, Ansari added.

“If you’re investing in Thailand, then the current situation is not a deal-breaker.”

Source : SCMP

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It’s a property with a view spanning over 10,000 square feet in Alameda, less than a mile from the beach and just steps away from Rittler Park and South Shore Center.

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But what do you need to think about before you embark on your property search?

The Connexion spoke to property experts to find out what potential movers should consider when looking to buy property in France.

Do your homework

Make sure you research France and its varied regions before you start house hunting, or better yet, take a trip to research possible locations.

“France is a huge country with massively varied countryside, architecture and climate. A holiday spent touring the part that you are drawn to is good research,” says Julie Savill, from estate agency Beaux Villages, which has local property experts across France.

“Take a map and start marking areas, towns or villages that you like. Narrow down your search area before you even start thinking about viewings!” she says.

How remote do you want to be?

Many people dream of moving to rural France and escaping the hustle and bustle of the city, but it is worth thinking carefully about just how rural you want to be and what the ramifications of a rural life could be.

“There are plenty of properties where you can be very rural, with no neighbours and a short or long drive to the nearest village. For some, this seems idyllic, however, you need to consider whether the novelty of seeing very few people and always having to drive to get your bread and provisions will wear off over a period of time,” says Natasha Alexander of Suzanne in France, a British-owned estate agency based in Normandy.

“We recommend you do some research into the nearest village and large town and decide how close you would like to be,” she says.

Create a wishlist

Writing down what you definitely want in your new house can be useful when it comes to starting your property search.

“How many bedrooms/bathrooms? Will you do renovation work or just decorating? Do you want the luxury (and the cost) of a pool? Would you be happiest in a village or do you want to be completely alone in the countryside?” says Ms Savill.

Also consider what kind of house you would ideally want to buy.

“Do you dream of a renovated farmhouse, a maison de maître, a pavilion style house – how do you wish to live? Is it preferable to live on one floor or do you require something that is a new-build where the energy efficiency is the best it can be,” says Ms Alexander.

And it is just as important to think about your red lines.

“Are neighbours an absolute no? What about modern properties?” says Ms Savill.

Research the French housing market

Get acquainted with France’s housing market, which could be very different from that in your home country.

“Researching the housing market is essential. Prices vary significantly depending on the region and may not be as cheap or expensive as expected, says Patrick Joseph from My French House, a UK-based company that helps house hunters find properties in France.

“Some buyers still harbour the dream of finding a chateau to renovate or a farm in Provence for the price of a terraced house in the UK, but this is usually unrealistic. The good news is that asking prices for resale properties have been reducing over the past few months as the national market cools,” he says.

Check transport links back to your home country

Those who plan to buy a second home or stay in their home country for part of the year should look into transport links.

“Have you looked at the various routes available and the costs involved in travelling back to your home country. Are there good links back? How long will it take?” says Ms Alexander.

“This may not be of great importance if you do not plan to do this regularly but if you are commuting between the two countries this may be a deciding factor as to where your house will be.”

Be realistic about your budget

It can be easy to ignore your budget when picturing yourself in that beautiful chateau, but it pays to be realistic.

“Consider currency exchange rates so you know just how much you have to work with,” says Ms Savill. “Estate agency fees are generally included in advertised prices and you will need to pay in the region of 8% notaire fees on top. This includes the equivalent of stamp duty/land registry in the UK.”

“Setting your budget is a fundamental step,” agrees Mr Joseph. “If you need financing, apply for a decision in principle from a French bank or broker as early as possible; the criteria for mortgages are very strict. If you need to sell a property elsewhere, try to coordinate the timing of listing your home with your visits to France,” he says.

Mr Joseph also recommends researching currency transfers and the buying process in France, for example, how exactly to make an offer and when to pay your deposit. “These will differ from your home country,” he says.

Beware of the land trap

It is not only your budget about which you should be realistic – while many people dream of buying a property with land – consider how much you will be able to look after.

“A lot of properties come with a lot of land. If this is to be a holiday home, think carefully about the work and cost of maintaining a big garden or even a field and woodland if you are only there occasionally,” says Ms Savill.

Natasha Alexander says Normandy, and its excellent value for money, is attractive to people who want to buy land, for example to run a business or have a smallholding.

“Consider how much land is too much. Don’t forget acres and acres need to be maintained and looked after. Do you want this burden, in particular, if you want a lock-and-leave holiday home?” she says.

Be prepared to change your mind

There is nothing wrong with changing your mind about what you want, says Julie Savill.

“Be prepared to change your mind once you start viewing. That cute old stone property might just feel very dark once you get inside and a complete lack of neighbours could turn out to leave you more isolated than you anticipated,” she says.

And be willing to see a few wild cards.

“Sometimes really good properties don’t come over so well in photographs. Be prepared to go and see a couple of places that challenge your wishlist,” Ms Savill says.

Check out the local schools

If you are moving with young children, make sure to research the local schools before deciding on a house.

“Do you have easy access to the local primary school? While it may seem very quaint and again idyllic to live in the countryside when the children are very young. Have you considered when they become older and wish to play with friends after school?” says Ms Alexander.

“A little planning ahead could mean that you are not spending a lot of time taxiing your children to and from various sports clubs and the school itself.”

Consider healthcare options

It is important to think about healthcare options, whether you are planning to stay in France into old age or perhaps have a current healthcare condition that will need regular attention once you move.

“None of us like to think of getting older or sick, but consider your local clinic for services and the closest hospital. How long will the journey be if you need regular treatment?” says Ms Alexander.

Check the Internet connection

Something that could easily slip your mind is checking the local internet speed of the house you are looking at.

“While many areas have fibre now you will need to check the speed of the internet connection, in particular, if you use the internet for your work,” says Ms Alexander.

Find an agent

A good agent can help you navigate the process of buying in France.

“Buying privately is absolutely possible if you feel informed and confident enough to deal with a negotiation and contracts, which will all be in French,” says Ms Savill.

“An agent will have excellent local knowledge and a great awareness of the correct pricing for your local area. Speak to a few people and find someone you connect with,” she says.

Source: The Connexion

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He said the property market has demonstrated significant growth and resilience, with individual property counters experiencing up to 600% growth in share price appreciation.

He said property counters in the stock market have been on the rise from January 2023 to June 2024, with 76 out of 100 on Bursa Malaysia experiencing an increase in share prices.

“(Meanwhile,) 22 counters showed a decrease in share prices, (and) two counters maintained their share prices despite fluctuations,” Nga said in a statement today.

He noted that among the top counters were DPS Resources Bhd, registering 600% growth in share price, UEM Sunrise Bhd, posting a 347% increase and WMG Holdings Bhd, which appreciated by 326% from January 2023 to June 2024.

“This positive trajectory is expected to continue into the second half of 2024. I firmly believe that under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, our property market will have a bright future in the coming years.

“We must work together to enhance our industry’s reputation and increase the confidence level of investors to make the property market even more resilient,” said Nga.

According to the statement, Malaysia’s property market transactions were valued at RM42.31 billion, with more than 89,000 transactions recorded in the first quarter of 2023. In the first quarter of this year, the value of property market transactions hit RM56.53 billion, an increase of RM14.22 billion, with more than 104,000 deals.

“This significant growth indicates that Malaysia’s property market is recovering well and on the rise,” the statement added.

Source: The Sun

The post appeared first on Amora Escapes.

That’s also the bad news, costing them thousands more in real estate taxes and leaving less for discretionary spending.

“To pay the higher property taxes, it just means we’ve got to take more money out of our investments when it comes time to hit those big bills,” Beverly McAdam said.

She backs a Colorado ballot proposal that could cap the growth of property tax revenue. It’s one of several measures in states this year to limit, cut or offset escalating property taxes in response to complaints.

Over the past five years, single-family home prices have risen about 54% nationally, according to S&P Dow Jones Indices.

That means higher tax bills for homeowners when governments don’t offset higher real estate values by reducing tax rates. And with offices seeing higher vacancies as people still work from home after the coronavirus pandemic, some commercial property values are declining, putting even more pressure on residential properties to deliver revenues.

“With assessed values skyrocketing over the past few years,” said Jared Walczak, vice president of state projects at the nonprofit Tax Foundation, “homeowners are clamoring for relief, and state policymakers are increasingly exploring ways to provide it.”

Colorado, like Alabama and Wyoming, also has a new law that will limit the growth in tax-assessed values for homeowners. Property tax relief will be part of a special legislative session beginning June 18 in Kansas, while Nebraska also could hold a special session to cut property taxes.

Georgia voters will decide in November whether to authorize a new law limiting increases in assessed home values for tax purposes to the rate of inflation, unless local governments or school boards opt out.

Five years ago, Lanell Griffith and her husband paid a little less than $2,700 in property taxes on their Topeka, Kansas, home in a historic neighborhood of tree-lined, brick streets. Their bill last year was more than $3,700.

“The government shouldn’t be able to arbitrarily just increase what they say you owe them without any sort of guardrails on that,” Griffith said.

Kansas lawmakers this year passed three measures that would have reduced the state’s property tax levy for public schools. But each was vetoed by Democratic Gov. Laura Kelly because of concerns about other sections to cut income taxes. The special session will mark a fourth attempt at consensus.

In Vermont, Republican Gov. Phil Scott has vowed to veto a bill that would raise property taxes by an average of nearly 14% to provide more money for public schools. Scott said people “simply cannot afford a historic, double digit property tax increase.”

In many states, property taxes are primarily a function of local governments such as counties, cities, school boards and special districts for libraries, fire departments and water systems. Each entity sets its own property tax rate, which is added to the others to come up with an overall tax bill for property owners.

State legislatures can intervene in a variety of ways. They can establish statewide limits on how much assessed property values can rise, create partial tax exemptions for all homeowners or provide income tax credits to help offset property taxes for certain people, such as those 65 and older.

But any relief carries consequences. Limits on the growth of assessed property values may provide a greater benefit to the wealthy. Exemptions for homes used as primary residences can shift a greater tax burden to rental properties and businesses.

“If you do this too much, you can now start tying the hands of your local government and cutting them off from the ability to raise revenue,” said Richard Auxier, a principal policy associate at the nonprofit Tax Policy Center.

While signing several property tax relief laws this year, Republican Wyoming Gov. Mark Gordon vetoed one that would have exempted 25% of a home’s value from property taxes. He said it “jeopardized the financial stability of the state and counties.”

In 1982, voters in Muscogee County, Georgia, approved a local ordinance freezing assessed property values for homes used as primary residences. The result: longtime homeowners pay very little, newcomers pay more and businesses face some of the state’s highest property tax rates, said Suzanne Widenhouse, the county’s chief appraiser.

Last year, two similar homes worth around $330,000 had dramatically different tax bills. One, whose assessed value was frozen in the 1980s, owed less than $8. The other, whose assessed value was frozen when purchased about five years ago, owed $3,236, Widenhouse said.

“Anytime you grant an exemption, you create an inequality,” she said.

A Georgia ballot measure would amend the constitution to allow increases in assessed property values to be capped at the rate of inflation. But it wouldn’t undo past increases.

In the eight years since Rob Romeijn bought a ranch-style house on 10 acres (4 hectares) southeast of Atlanta, Rockdale County has raised the assessed value of his property from $127,000 to $230,000, also bumping up his property tax bill, he said.

As a Dutch immigrant with permanent residency, Romeijn can’t vote in elections in Conyers, but he was so unhappy about the increase that he made a sign urging people to vote out Rockdale’s commissioners and protested outside county offices in April.

Colorado also has been at the center of the property tax debate. The state has experienced decades-long growth in new residents, driving up demand for housing. Meanwhile, it has struggled to find a balance between providing tax relief for homeowners and sufficient funding for local governments.

A 1982 constitutional amendment limited residential properties to 45% of Colorado’s total property tax base while also setting a fixed assessment rate for commercial properties. To keep the ratio in balance as home values rose, residential tax assessments were cut, leaving less revenue for essential services such as fire districts.

Colorado voters repealed that constitutional provision in 2020. Since then, assessed home values have risen rapidly and the General Assembly has responded. The latest law, signed in May, is projected to shave over $1 billion annually off future property tax revenue by reducing tax rates and imposing growth limits.

But that’s not enough to satisfy some residents. The conservative group Advance Colorado backed a citizens initiative asking voters in November to cap all property tax revenue growth at 4% per year and is gathering signatures for still another ballot initiative to lower property taxes.

“People are saying this is too much growth; government doesn’t need this much money,” Advance Colorado President Michael Fields said. “People are genuinely scared of losing their houses.”

Source: AP News

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FINDING THE perfect first family home can be tricky, but a recent addition to the property market in Gwent could be the answer.

Situated on Woodland Place in the community of Gilfach, Bargoed, this three-bedroom mid-terraced house could offer the ideal starter home for any family.

In what the estate agents describe as a “highly desirable location”, the property is within walking distance of popular schools and has plenty of local amenities nearby, including a convenience store and train station.

According to the estate agents New Horizons, the home could also be regarded as a “dream for anyone into cars or motorbikes”.

The property compromises of a entrance porch, open plan lounge/dining room, fitted kitchen, newly fitted ground floor bathroom, three generous sized bedrooms, double glazing, gas central heating, rear garden with paved patio and large garage with power and light.

It has recently been refurbished to a “high standard throughout”, with two double bedrooms and a single offering an ideal space for a family.

There is a feature fireplace in the lounge area, which could either be used for storage or for a wood burner, while the kitchen offers space for plenty of utilities, such as a tumble dryer, washing machine and dishwasher.

The ground floor bathroom has been fitted as part of the recent refurbishment, so is in excellent condition, as are all three good-sized bedrooms.

The house is being marketed by New Horizons Estate Agents, Bargoed, and currently has a guide price of offers more than £155,000.

New Horizons have said that the property is a “must be seen” before purchase, so if you would like to find out more details or book a viewing, you can do so on the website here, or by calling the estate agent on 01443 801564.

Source: Yahoo

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Packed into a suburban street, a puffer-jacketed crowd of people stamp their feet in the cold as they wait for the chance to bid on a home.

The air is charged with tension.

Young couples chasing the dream of ownership, retirees hoping to downsize and property investors rehearsing their strategies.

Each hoping they’ll be able to dive into the bidding frenzy about to begin and uniquely emerge victorious.

It’s a familiar scene to aspiring home owners across Australia.

But if you’ve ever felt the energy of a property auction firsthand, you may have wondered why we seem to be so attached to them here.

And whether the spectacle of a bunch of people waving their arms on a quiet street is really the best way to land a fair price.

Auction theory suggests open bidding offers high transparency

From Roman soldiers divvying up loot to the sale of ornate antiques across the world, auctions have been used for centuries to sell prized goods.

University of Technology Sydney economics professor Isa Hafalir says the theory behind property auctions is fairly simple.

While potential buyers might have a “private value” they’ve attached to the property based on research, at an open auction they are able to see the “common value”, by observing the public bids of others.

Plenty of interest during an auction often spurs people to reconsider a property’s worth.

“You think ‘OK, this house must be really good because lots of bidders are interested and increasing the prices, so therefore I should have a higher price for this’, and then you kind of re-evaluate your valuation,” Professor Hafalir says.

If the bids are stalling, buyers will probably scale down their private value of the property.

Auction theory assumes bidders are “risk neutral” in their behaviour, all attempting to pay a price that will be outstripped by the value of the home over the next few years.

“Under these assumptions … the auction is fully efficient,” he says.

“The highest-valued bidder will buy the object and they’re going to pay a fair price.”

Of course, human emotions run hot at auctions, which can lead to unexpected outcomes, including the “winner’s curse” — where the successful bidder realises too late they’ve forked out more than they should have in their scramble to win.

While auction fever can certainly lead people astray, Professor Hafalir says theoretical demonstrations have shown the open-auction format reduces the risk of a bidder ending up with buyer’s remorse, compared with a sale by negotiation.

“Most of the time, I would say that auctions are quite efficient,” he says.

Australia’s love of auctions isn’t matched in the US or the UK

Professor Hafalir has lived in both the United States and Australia and says the two countries have very different approaches to property auctions.

In Australia, properties going under the hammer are often sought-after homes across a range of prices.

“In the US market, a house being sold on the market sold by auction kind of signals that this is a foreclosure property, it’s not a good property,” Professor Hafalir says.

University of Queensland economics professor Flavio Menezes says it’s a similar story in the United Kingdom.

“[In the US and UK] real estate auctions are more commonly used for properties with unique characteristics,” he says.

“These may include properties under foreclosure that need to be sold at market value, luxury properties, or commercial properties.”

While auctions are more popular in Australia, the appetite varies considerably across different states and territories.

CoreLogic data from this year shows the ACT, Melbourne and Sydney are markets where you’re most likely to see a home going under the hammer.

It’s less common in Adelaide and Brisbane, while in Perth just 1.4 per cent of properties were taken to market via auction in the four weeks to June 25.

CoreLogic research director Tim Lawless says since 2021 there’s been a “subtle reduction” in the proportion of vendors taking their property to market via auction.

“This trend is more obvious in the less auction-centric markets such as Adelaide and Brisbane, where auctions temporarily comprised a much larger than normal portion of new listings as selling conditions heated up,” he says.

Why more auctions suggest a hot property market

Professor Menezes says Australia’s booming property prices have been the main driver behind the country’s embrace of auctions in recent decades.

“When a seller sets a fixed price for their property, it is often based on the recent history of prices for similar properties,” Professor Menezes says.

“However, in a rapidly growing market, such an approach underestimates the potential buyers’ willingness to pay, especially the highest possible valuation of a buyer. In a booming market, auctions prove to be highly advantageous for sellers.”

Professor Hafalir agrees auction trends offer some insight into where the wider property market is headed.

“In Australia, whenever the market is doing good, we see lots of auctions around and lots of success rates in terms of selling at auction,” he says.

“Whereas when the market is down, it is much less the number of houses are less and the success rate is less.

“So this kind of signals how the market is doing.”

Auction veterans say there’s an art to landing the winning bid

Cate Bakos’s job is all about riding the wave of an auction to land the winning bid.

The president of the Real Estate Buyers Agents Association of Australia says it’s not uncommon for clients from the UK or US to find the concept of an Australian auction “quite terrifying”.

She’s also seen competing bidders crumble under the pressure.

“I’ve seen people get carried away, and then immediately have buyer’s remorse and be unprepared to sign a contract,” she says.

She says careful research is the best way to protect against  a “deer in the headlights” situation at auction.

“To conduct all of your due diligence very thoroughly, and to do your pricing analysis in particular, is really important,” she says.

“Because you’ll hear cries of auction underquoting, and bad agent behaviour all around the nation, and you can eliminate that being a risk to you if you’ve done your homework thoroughly.”

For all its drama, Ms Bakos reckons the transparency of an auction to sell a home can’t be beaten.

“There’s no games being played or underhanded tactics or bluffing, because you can stand out in a public auction and see your opponents,” she says.

“It’s unlike a blind-bid situation where you might submit an offer and then find out after the event that the next-highest bid was $50,000 under yours.

“An auction gives you a chance to pip someone at the post and to pay what feels to you like a fair price.”

Source : ABCNews

The post The Auction Theory Playing Out Each Weekend in Australia’s Property Market appeared first on Amora Escapes.

Australia’s most expensive property market had the biggest surge in house prices because of a change to a $1.5million threshold.

Sydney house prices climbed by two per cent last month as buyers flocked in before they lost the chance to avoid having to pay tens of thousands of dollars in stamp duty.

Until July 1, home buyers in NSW had the choice of either paying an annual land tax or upfront stamp duty for a home worth up to $1.5million.

That meant this buyer could either pay $2,735 a year on land tax or $65,555 upfront in stamp duty – a big issue in an expensive housing market.

Former New South Wales Liberal premier Dominic Perrottet’s policy gave buyers the option of paying 0.3 per cent land tax on every dollar above a $755,000 threshold plus $500.

But his Labor successor Chris Minns and incoming treasurer Daniel Mookhey scrapped that policy after winning the March election.

Labor instead lifted the stamp duty exemption for first home buyers to $800,000, up from $650,000 as of July 1, and increased the concessional stamp duty level to $1million, up from $800,000.

In a sign buyers wanted to take advantage of the land tax choice before it ended, Sydney was last month Australia’s best performing market with median house prices rising by two per cent to $1,324,396, CoreLogic data showed.

Sydney’s auction clearance hit a monthly high of 75.9 per cent in the week ending on June 11 but have been declining ever since, sinking to 71.2 per cent on the first weekend of July when the land tax option was no longer available.

The proportion of homes passed in at auction rose to 13.2 per cent this week, up from 9.7 per cent a week earlier.

South-west Sydney had an even weaker auction clearance rate of 38.1 per cent.

House prices last month rose in every state capital city, except Hobart, even though the Reserve Bank raised interest rates in June for the 12th time since May 2022.

CoreLogic’s research director Tim Lawless said the prospect of one of two more rate rises, starting again on Tuesday, could stall the recovery in house prices, after they peaked in 2022 in most cities.

‘Forecasts on where the cash rate will land and how long it will stay elevated vary, but it’s likely there is at least one more rate hike to come, potentially more,’ he said.

NSW Labor Premier Chris Minns (pictured on election day in March with his wife Anna) scrapped his Liberal predecessor’s policy of allowing home buyers the option of paying an annual land tax instead of upfront stamp duty

‘It’s hard to imagine the recent pace of growth in housing values being sustained while sentiment is close to recessionary lows and the full complement of borrowers are yet to experience the rate hiking cycle in full.’

Brisbane was the second best performing market after Sydney with the mid-point house price rising by 1.3 per cent to $806,781.

Adelaide’s median house price climbed by one per cent to $712,421, with CoreLogic expecting it to hit a record high in July.

Perth house values rose by 0.9 per cent to a record high of $615,793.

Melbourne house prices increased by 0.6 per cent to $918,971, even though it’s a city that is receiving a large influx of new migrants.

Canberra values edged up by 0.5 per cent to $954,079.

Darwin, Australia’s most affordable capital city market, had the smallest monthly increase of 0.1, taking the median price to $585,782.

But Hobart house prices fell 0.5 per cent to $690,085.

Economists are widely expecting the Reserve Bank of Australia to raise interest rate on Tuesday to a 12-year high of 4.35 per cent, up from an existing 11-year high of 4.1 per cent.

Inflation in May moderated to 5.6 per cent, down from 6.8 per cent in April, but it was still well above the RBA’s 2 to 3 per cent target.

Source : MailOnline

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In its property market snapshot for June, Leaders Romans Group (LRG) looked at activity across its divisions including Mortgage Scout, First for Auctions and its estate agency brands. 

The group said rising mortgage rates and the anticipation of further increases had impacted its sales and mortgage divisions.  

Kevin Shaw, national sales managing director at LRG, said homeowners who had a “good fixed rate” agreed in principle were willing to move before the offer expired. 

Sarah Thompson, managing director at Mortgage Scout, said: “We have had an exceptional Q2 with the number of new mortgages and remortgages, and have been pleased to be able to provide reassurance to our clients and guide them through this tricky mortgage market.” 

Across its sales business, the group saw sales rise by 11 per cent compared to May and new instructions were up by eight per cent on the previous month. Compared to June last year, there were 12 per cent more instructions completed. 

The number of valuations undertaken increased by six per cent year-on-year, and by five per cent compared to May. 

LRG registered 41,342 new buyers in the first half of the year, which averaged more than 1,600 each week. 

Shaw added: “Despite the interest rate rise and other challenges, we have seen an increase in activity for valuations, instructions and sales agreed, indicating that there is still significant potential in the market. June’s sales are more positive than May’s and we hope that trajectory continues throughout the summer months.” 

He said there had been a “realignment in house prices” which encouraged people back into the market as they could not buy larger properties with smaller loans. 

Shaw said: “We haven’t seen a spike in fall-throughs despite the mortgage rates rise. Over 20 per cent of people purchase a property without a mortgage and many more have very low loan-to-value rates, making the interest rates rise less significant for them.  

“There have been some delays on exchange due to sale prices being renegotiated, but despite this our net sales, by volume, are up compared to May.” 

Good impact on auction sales 

The uncertainty and rise in mortgage rates have had a positive impact on the auctions market, LRG said, as buyers looked to speed up purchases before rates rose further. 

In its June auction, LRG’s subsidiary First for Auctions recorded a 68 per cent success rate. The company has made £31m in sales so far this year. 

Daniel Gale, head of auctions at First for Auctions, said: “In a market laboured with interest rate rises and protracted economic uncertainty, our auctions in Q2 showed promising signs of stability, receiving interest from over 3,500 potential buyers. 

“Due to household budgets remaining under pressure from high inflation, the trend since the start of the year has been for vacant residential freehold property, still regularly outperforming occupied investments as buyers look for more flexible, competitively priced opportunities.” 

Gale said the business’ online auction format also helped by allowing sellers to access a wider audience. 

LRG said its new homes division was busy in Q2 and sold more than 150 plots, which was comparable with the same period last year. So far in 2023, the value of new homes sold has reached more than £120m. 

In Q2, the New Homes team added 21 new sites to its books and these are set to launch later this year. There are now 295 more plots added to its stock which are ready to be sold in 2023. 

Tim Foreman, managing director of land and New Homes at LRG, said the group’s developer clients were getting more “imaginative” to attract buyers including assisting with moving costs or offering part exchanges to complete chains. 

He added: “Considering the turmoil in the mortgage markets and the general slowing of construction, sales figures are looking very positive. Our average sale price for new homes has remained almost identical to last year, which is positive considering that house sales overall are being reduced in price to a greater extent than this time last year.  

“This is partially due to the increased popularity of new homes thanks to their greener credentials and lower running costs.” 

Its corporate sales team, which provides part exchange sales, assisted sales property disposals, asset management and property portfolio sales, saw a rise in activity. 

Valuations in the first six months of the year were up by 60 per cent compared to last year, while new instructions rose by 68 per cent and net sales increased by 16 per cent. 

Paul Johnston, head of corporate sales at LRG said: “We are continuing to see considerably greater demand from part-exchange clients and while we are seeing some investors wishing to exit the market, we also have new clients who wish to either enter the market or expand their current portfolios.  

“Overall, we are finding that even with the current economic outlook, property continues to be a sound investment for the long term and whilst builders are building, sellers are increasingly coming to us for local expertise to move part exchange and assisted move transactions forward.” 

No big changes for now 

For the rest of the summer, Shaw said he did not expect there to be any “significant change” to property sales. 

He added: “Sellers and purchasers who are motivated to move by Christmas will need to bear in mind the slightly slower market and start planning for the move imminently. Typically, it takes three weeks to get the sale underway and then four months for conveyancing.

“We expect further interest rate rises in the next couple of months to result in a similar pattern. But interest rates may begin to decline in the new year as the government and the Bank of England tackle inflation and try to encourage a more buoyant economy in the run-up to next year’s general election.” 

Source : MortgageSolutions

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