The coronavirus appeared to do little to temper Australia’s surging housing market as buyers continued to dig deep into their pockets at hotly contested auctions.
There were widespread fears the threat of an outbreak and a coming recession would discourage buyers but most auctions at the weekend were well-attended and vendors collected impressive results.
A luxury apartment with views of Sydney harbour sold for more than A$1 million over the already lofty reserve price.
The home sold under the hammer for A$8 million after going to market with a price guide of A$6 million to A$6.5 million, which was close to the reserve.
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Selling agent Nigel Mukhi said fears over coronavirus had no visible effect on turnout. Close to 50 people attended the auction, including four registered bidders. “It was an amazing auction,” he said. “The home was wide for the area and has beautiful views.”
Auctioneer Josh Larsen received nearly 100 bids, with all four registered bidders submitting offers. The eventual buyers were a Sydney family.
Auctions in the New Zealand's biggest real estate market last week saw strong bidding, with many homes selling well over CV, and today the Reserve Bank announced it had slashed the Official Cash Rate from 1 per cent to a new record low of 0.25 per cent.
In Sydney, selling agent George Agostino of First National-Gladesville, who secured A$1.945 million for his vendors at the weekend, said: “All my properties this week sold above expectation and we’re getting lots of buyers.”
He added the virus may have discouraged neighbours and other sticky beaks from attending auctions but serious buyers remained committed.
“People are very concerned about the stock market, but it’s different with property. People still need a place to live and buyers with loans approved still need to move forward.”
Across Sydney, there were nearly 500 auctions on Saturday. Realestate.com.au chief economist Nerida Consibee said she expected the clearance rate to be lower than last week but added it was difficult to predict the influence of coronavirus.
- news.com.au
