Agents tip hot auction action at luxury end

Research house Core­Logic tracked about 1400 auctions in capital cities at the weekend.

Prestige real estate agent Mark Manners says, ‘I think we’ve got a new sentiment in the market; a lot of buyers are cashed up and waiting’. Picture: News Corp Australia

Capital city auctions began in earnest over the weekend in the wake of the Australia Day holiday, with about 1400 homes up for auction.

Kevin Brogan, of researcher Core­Logic is tipping continued growth after clearance rates and home values picked up at the end of last year.

Lenders have opened up to borrowers but the market must overcome knocks to consumer confidence from bushfires and the coronavirus crisis.

But expectations for continued residential price growth in Melbourne and Sydney is supporting auction volumes.

“Melbourne and Sydney showed very strong (price) growth at the end of last year and I expect that this will moderate, but remain in positive territory,” Mr Brogan said.

Much of the upcoming action is expected at the luxury end with price increases already for mansions and high-end apartments in Sydney and Melbourne.

Knight Frank head of prestige sales Mark Manners has just launched campaigns for homes in Mosman and Neutral Bay on Sydney’s north shore and says the market is improving after last year’s patchy conditions.

“I think we’ve got a new sentiment in the market; a lot of buyers are cashed up and waiting,” Mr Manners said.

“I think this first half is going to be quite strong across all price points … there will be a lot of transactions.”

Banks are opening up their lending for small and large loans.

ANZ economists Felicity Emmett and Adelaide Timbrell said house prices were rising solidly, supported by easier access to ­credit and lower interest rates.

“A combination of pent-up ­demand and low volumes looks to have been a key driver of the larger-than-expected rebound,” the ANZ economists said.

ANZ is forecasting that prices will rise about 8 per cent nationwide through 2020.

REA Group chief economist Nerida Conisbee says price growth has started again, with Sydney leading the charge. Melbourne is not moving as quickly, with weakness remaining in the Victorian capital’s western suburbs.