ANZ’s latest housing market update comes as auction clearance rates hit 75 per cent across all capital city markets over the weekend. A total 1,739 homes were taken to auction, compared to 2,590—at a 70 per cent clearance rate—the same time last year.
Sydney’s market performed well, according to Corelogic’s weekly figures, returning a 76.6 per cent clearance rate while Melbourne posted a strong post-lockdown result with 603 scheduled auctions returning a 73.5 per cent clearance rate.
Emmett and Timbrell said the momentum will continue as policy and lending support mitigates 2021 labour market risks.
“Owner-occupiers, and particularly first home buyers, are driving the market. Clearly a significant cohort of buyers with stable employment are keen to take advantage of historically low interest rates,” Emmett and Timbrell said.
Investor participation, in contrast, remained well removed from the 30 per cent-plus levels seen in 2015, making up less than 15 per cent of new loans, according to the ABS’ latest lending figures.
Emmett and Timbrell said that the impact of waning demand from investors and new migrants will hit the apartment market hardest.
“The overall weakness in the rental market is flowing through to investor demand, for both established and new housing.
“However, low rates and government stimulus are more than offsetting these negatives.”
“The recent announcement that the Victorian government will spend $5.3 billion on social housing will further lift activity, while news that a vaccine may be widely available by the June quarter will only increase confidence in the housing market.”