Residential agents expect surge in sales

Upbeat residential agents are ramping up for a busy round of activity this weekend, given house sales are up nearly 34 per cent for the year.

Atlas founding partner Michael Coombs.

Fresh from the usual real estate holiday lull, upbeat residential agents are ramping up for a busy round of activity this weekend, given house listings are running 7 per cent higher than a year ago and sales are up nearly 34 per cent for the year.

“It’s going to be busy, busy, busy this weekend, we are being inundated,’’ said Michael Coombs, founding partner of Atlas.

“We have had a number of new listings in Sydney’s Mosman and Byron Bay this week ranging from $5m to $20m,” said Mr Coombs, who sold a $22m Wategos Beach house sight unseen within five days of it hitting the market just before Christmas.

“Housing supply was quite low and a lot of people missed out on stuff last year, but everyone has had a nice break. It was quiet over December and January, but everyone is back in the market since Australia Day,” says Coombs, adding that he is getting 50-60 groups through each open house inspection.

Celebrity Melbourne agent John Castran, who is marketing houses in Toorak and Mount Eliza, said he was not fazed by the city’s five-day lockdown. “We now know, as a result of the previous lockdowns … that the real estate market will continue to provide a safe haven for investment. We have been expecting very big weekends, and the next three weekends will be big because demand is still outstripping supply,” Mr Castran said.

“It is fuelled by a lack of stock and low interest rates. People want to do something. There’s been a big conclusion we are not going to be able to do much for two years. People are buying in regional areas because the banks will lend.”

Despite the end of Melbourne’s scheduled Saturday home auctions and numerous open homes, Ray White Victoria chief executive Stephen Dullens said he was “very confident the strong real estate conditions across the state will continue”.

Housing economist Andrew Wilson said the market was being fuelled by the fact Sydney and Melbourne house and apartment prices had not risen in three years, wages were 6 per cent higher and historically low interest rates were still in play. “Positive affordability is now driving housing markets, there’s higher incomes and lower mortgages and flat prices,” Dr Wilson said.

“We have positive media coverage, all those animal spirits are being released.”

Dr Wilson added there had been a very strong increase in new listings over the past fortnight and “there’s been a surge over the week since last Sunday”.

“Sydney has been the top performer in terms of sales … we have had 80-90 per cent clearance rates over the past two weekends and listing numbers are very strong.”

He said the cessation of JobKeeper would not hurt the market as recipients were not necessarily home buyers.

Billionaire apartment developer Harry Triguboff says apartment investors were now making their way back to the market in small numbers.

“The investors in cities are weak, but they will come back but not in great numbers and the people from China are coming back. The good news is the government is looking for places to house the international students when they come back,” he said.

Mr Triguboff said apartment sales at his 76-level beachfront tower, Ocean, at Surfers Paradise were going well.