The month of June started off by giving us mixed messages as to what direction the market was heading. As the month progressed we saw the competition ramp up and was back in full force. Once again, we have noticed a lot of interest from developers and investors with our clearance rate up at 86% for Auctions across June.
Most properties averaged around 3 bidders and anything with development potential averaged 6 bidders. On top of this we have seen approximately 30 – 50% growth in the past 12 months alone for properties with development potential. After discussions with the team and our loan market advisors I believe this has been fuelled by some of the Government’s announcements around regulations changing with the debt to income ratio tool, and new builds qualifying for interest deductibility
As for inner-city apartments we are seeing good movement in higher end and larger apartments that are more targeted towards home buyers. As for the investment market with the borders being closed and rents still being reduced there hasn’t been much upward movement in price although have had some good news of late with some of the main banks now reducing the size limitation for lending with low deposits from 45m2 down to 38m2 which opens up these apartments also to first home buyers and alike.