Expats flood the market

AUSTRALIAN expats are returning to Australia in droves and have been eager to put their money into safe investments.

With consumer confidence at a seven year high according to a recent Westpac survey, it’s clear that many, including the influx of expats, see the Australian property market as a safe bet. Especially as leading economists and major banks predict the resurgence of the housing market in 2021.

Since March 13, 398,000 Australians have returned home and we know these returning expats continue to fuel demand for Australian properties. The Department of Foreign Affairs and Trade has also reported that there are a further 29,000 expats currently registered to return home.

Ray White data also confirmed this trend after there was a 20 per cent jump in people currently overseas looking for Australian properties with the leading group in October. Each week, Ray White, have seen more and more returning Australians making their presence known at auctions through fierce bidding and willingness to pay premium prices for the short supply of stock still seen across the market.

While stock levels are slowly rising, it’s bidder and clearance rate number that have been the real standout this year. Just last week, Australasia’s leading real estate group recorded a national clearance rate of 69 per cent while 5.6 bidders registered to bid at 170 auctions across the country.

With huge buyer confidence in the market, is it any wonder the 2020 spring selling season has been one of the best on record for market leaders, Ray White. This weekend will be no different as Australia’s biggest auction agency has 242 homes scheduled to sell under the hammer nationally.

One of the biggest indicators of buyer demand has been in Australia’s largest auction market where last weekend Ray White Sydney posted a 72.5 per cent clearance rate and six average registered bidders across 51 auctions. Selling season looks set to run right up to Christmas and it looks like hat buyers are not planning to waste any opportunities as another 83 homes go to auction through Ray White.

In Sydney, families looking to buy are in luck as 8 Rushall St, Pymble (pictured above) is headed to auction on Saturday. With a price guide of $2,900,000, the five bedroom Pymble home is expected to fly.

Ray White Upper North Shore listing agent Rowan Lazar said proximity to the local school has made the house a standout for parents with school aged children.

“The house is quite broadly appealing to a lot of buyers and we are getting people from across Sydney but it’s particularly attracted a large number of families with school age kids,” Mr Lazar said.

“Some are looking for land to build their dream house while others love the house as is. It’s a big, flat block with a lot of potential.”

Ray White Castle Hill agents Karl Anthony and Sara Perry have the perfect multigenerational home at 2 Erlestoke Pl in the sought after Oak Hill Estate. The seven bedroom home not only has the space for a big family, but also a granny flat that many interested buyers have said is perfect for the in-laws.

Mr Anthony said there has also been strong interest from buyers looking to rent out the granny flat space.

"A lot of buyers are coming from the surrounding suburbs looking for an investment property. After the uncertainty of the past year, many buyers are seeing value in homes that can generate extra income," Mr Anthony said.

Ray White's James Kerley will be conducting the auction which will cap off a strong four week campaign, during which Mr Anthony has taken 124 groups through the house.

Ray White Green Valley agent Scott Whittle will also be auctioning a seven bedroom home. The single 891sqm block at 104 Bayview Avenue, with two attached houses, has received significant interest from buyers drawn to the potential of the unusual layout.

Ray White Forest Hill agent Aaron McDonald said there is nothing on the market like the listing at 3/518 Mitcham Rd in Mitcham, which will go to on-site auction this Saturday.

“It’s the perfect downsizer and there are no other single storey units like this one on the local market right now so we’ve had huge interest,” Mr McDonald said.

“We’ve also had some young families coming through who want low maintenance living. People love it because it’s in a great location and can be lived in as is.”

Mr McDonald said buyers have flooded the market in recent weeks and have been competing fiercely for decreased stock.

“Stock is low but there are so many people wanting to buy. Mainly it’s been families wanting to buy anything they can, while there are also heaps of young couples looking to get into the market,” he said.

“Everyone has been held back for six months and they are really keen to move before Christmas.”

Ray White Carnegie Partner Josh Hommelhoff echoed Mr McDonald, saying that in his local south-east Melbourne market, downsizers were very active. But with downsizer stock still low, they have flocked to his listing at 48 Gnarwyn Rd (pictured above).

The Californian bungalow, which has a price guide of $980,000 to $1,050,000, has also been popular with first home buyers attracted to its potential, character and sought after position.

Ray White Carnegie Director Matt Hurlston will conduct the online auction which can be watched here.

In Forest Hill, there’s set to be a battle between developers and family owner occupiers as 5 Felicia Grove goes under the hammer through Ray White Blackburn Director Peter Schenck.

Mr Schenck, who will also conduct the online/on-site auction, said the three bedroom Forest Hill home has potential for both buyer demographics.

“There is room to put another property on the back of the land or knock it down and rebuild so there is certainly a lot of potential for developers,” Mr Schenck said.

“But there are also quite a few interested families that really want a foothold in the area, who might live in the home for now and decide down the track whether they want to rebuild or renovate.”

“It’s a bit of an each way bet so we’ll see what happens, but the reality is that it will be sold on Saturday.”

The Ray White Blackburn Principal has given out a price guide of $920,000 to $1,012,000. Watch the online auction here.

Selling season has been a success for Ray White Cheltenham’s Kevin Chokshi and with two weeks to go, he has no plans to slow down. Both 10 Alfred St, Beaumaris and 24 Herbert St, Parkdale (pictured above) are expected to achieve premium prices through on-site/online auctions this weekend with Mr Chokshi calling both.

Alfred St has a price guide of $1,200,000 to $1,300,000 while the Herbert St price guide is set at $1,700,000 to $1,800,000. Online auction links available on request.

The rainy weather is forecasted to clear up for this weekend’s 53 Ray White Brisbane auctions, but between buyer demand and low stock there will still be a perfect storm of success for sellers.

In the morning, Ray White New Farm agent Nicholas Given will auction off a prime unit spot at 22/118 Oxlade Drive. The auction will be called by Ray White New Farm Principal Haesley Cush as several eager downsizers throw their hat in the ring for a chance to snap up a slice of riverside real estate.

Meanwhile, Ray White Alderley agent Janine McDonald expects to auction a three bedroom home at 51 Quinn St, Toowong to a crowd of competitive young buyers wanting their first or second home. The auction will be conducted by Ray White Queensland Chief Auctioneer Mitch Peereboom after a campaign that saw more than 100 groups inspect the Toowong home.

Ms McDonald said the overwhelming feedback she has received from buyers is that there is a lack of quality stock on the market.

“There is not much supply in the local market, especially properties that don’t need a truckload of work,” Ms McDonald said.

“Most of the buyers we are seeing through Quinn St like that this house doesn’t need any work. It’s been well-maintained, in a great position and just a very pretty house.”

Mr Peereboom will also be heading to West End on Saturday to auction 54 Dornoch Tce (pictured above) which has been listed through Ray White West End’s Luke O’Kelly.

Mr O’Kelly said he has overseen 55 inspections of the house, mainly with families wanting to buy into the Brisbane State High School catchment.

“A lot of people are coming into West End so they can secure a property in one of Brisbane’s most sought after school zones,” Mr O’Kelly said.

“The house is also special because it has two street frontage and a large lock up garage. Most houses in West End have street parking so this is a rare opportunity.”

The Gold Coast won’t be left out this weekend as Ray White Runaway Bay agent Tracey Pretty gears up for her own auction success at 1 Kirdford Circuit, Arundel at midday.