The State of the States

THE new financial year is here and it’s time to take stock of the year that was in the State of the States review.

The clock has ticked over on another financial year and the winter selling season is continuing to shape up as one of the strongest in history. But how has the market performed in each state over the past year with rolling lockdowns, online auctions and closed international borders?In the review, Ray White Group chief economist Nerida Conisbee said the pandemic may not be over but it’s hard to find bad news in the Australian economy right now.“Our GDP is back to where it was prior to the pandemic - the only country in the world where that is the case,” Ms Conisbee said.“Job ads are now at a 12 and a half year high and unemployment is coming down far quicker than expected. All of this continues to turbocharge the property market and prices across Australia are now up 10 per cent compared to 12 months ago with, for now, very little sign of a slow down.Ms Conisbee noted that with conditions so strong, there continues to be speculation that a dramatic slowdown is imminent but at this stage Australians are yet to see any signs that this is the case.“The number of properties for sale continues to rise and mortgage rates are slowly creeping up and this should calm price growth,” she said.“For now inflation remains under control and there is no cause for alarm when it comes to interest rate rises. This could of course change quickly and look out for growing speculation as to when the RBA will move on the cash rate.” In New South Wales, conditions are roaring ahead. So far this year, Ms Conisbee said Sydney has seen the strongest price growth of all capital cities, although year-on-year growth is below smaller cities due to much slower conditions early on in the pandemic.The Ray White Sydney network continues to be market leaders in auctions, booking 6,226 over the last financial year, resulting in an 75 per cent clearance rate. Average registered bidders stayed steady at 6.1 while active average bidders came in at 3.2. This weekend, Ray White Sydney will continue online auctions with 105 scheduled on Saturday.Close to 100 hopeful buyers inspected 1/1 Belgrave St, Petersham, which Ray White Petersham director Nicholas Arena said has been popular with young couples and downsizers.“The property is rare in that it’s not quite a unit but it’s not a house so we are getting those mid-range buyers who are getting a house-type property for better value” Mr Arena said.Meanwhile, local buyers are vying for the keys to 42 Pleasant Ave, Erskineville (pictured above) which is going to online auction through Ray White Surry Hills | Alexandria | Glebe | Erskineville principal Shaun Stoker this Saturday.“Buyers have mostly been owner occupiers, some are locals who want to get into one of the best streets in the suburb,” Mr Stoker said.“We’re also getting people who want to renovate the property. It’s on a corner block with a north facing aspect so there is great potential to do something new with it.”Online auction links available on request.

In Victoria, the last 12 months have been tough with rolling lockdowns impacting the economy and people’s livelihoods.Ms Conisbee said for property, the impacts have been skewed towards the inner suburban apartment rental market but like the rest of Australia, prices in Melbourne have grown, although a little bit more subdued than other cities.

Depsite the lockdowns, the last financial year was still strong for Melbourne auctions. Ray White scheduled 5,160 and achieved an 80 per cent clearance rate. Like most of the country, average registered bidders were up on last year at five while average active bidders sat at 3.3. This weekend, the city has 144 properties booked to go to auction.

The market belongs to downsizers and young couples in Melbourne this weekend with properties like 9 Rathgar Rd, Lysterfield (pictured above), 2/13 Oak Ave, Cheltenham and 33 Ian Grove, Mount Waverley all in hot demand.Rathgar Road selling agent James Grosso of Ray White Ringwood is expecting his auction to fly after buyers lined up to inspect the four bedroom home. Meanwhile, Ray White Cheltenham director Kevin Chokshi said with more than 50 inspections completed on his Oak Avenue listing, he is sure there will be some serious bidding action on auction day.Ray White Mount Waverley managing director Courtney Matthews said he doesn’t think he’ll have a problem coaxing serious bidders down to his Ian Grove auction on Saturday.“There are lots of young couples trying to get their foot in the door in Mount Waverley,” Mr Matthews said.“It’s still at that sub-million dollar price point and the property is not so big that they are competing with developers but not too small for their lifestyle.”

Heading north, international migration may be negative but very high levels of interstate migration to Queensland has been a feature of COVID.“All these new residents, lower infection levels, a strong economy and more people looking to buy second homes have led to particularly positive property market conditions for the state,” Ms Conisbee said.“Provided it can maintain the momentum it has picked up over the past 12 months, Queensland could be heading for a golden decade of property prosperity.”Over the financial year, Ray White Brisbane scheduled 2,332 auctions and booked a 62 per cent clearance rate. Average registered bidders hit highs of 6.1 along with 3.6 active registered bidders on average.Onsite auctions are once again on the table this weekend and many buyers will be looking to make up for lost time. Ray White Ashgrove agent Tamara Lee is ready for the influx of buyers with two desirable northside properties that have, so far, attracted a lot of attention.Ms Lee said 20 Plant St (pictured above) is the perfect entry level family home in Ashgrove, while 15 Victoria St, Kelvin Grove has been popular with first home buyers.“The marketplace is so strong right now, both Kelvin Grove and Ashgrove have seen a lot of growth over the past year. Houses that couldn’t sell over a year ago are moving really quickly," Ms Lee said.

South Australia has seen some massive growth in the auction space over the past year. Adelaide has been at this heart of this auction push and over the last financial year, Ray White in South Australia’s capital city recorded a 71 per cent clearance rate. Average registered bidders sat at 7.5 while average active bidders came in at 3.4.Ms Conisbee said Adelaide is now also officially Australia’s most liveable city with the Economist Intelligence Unit deciding that it’s not only Australia’s finest city but the third best city in the world after Auckland and Osaka.She added that while such accolades are always up for dispute, there is no doubt there is a lot to like about Adelaide and many of the best parts about it got even better during the pandemic.This increased liveability has been great for families who have been flocking to opens of 4A Hextall Ave, Tranmere. Ray White Norwood selling agent Brandon Pilgrim said 80 per cent of the 113 interested buyers have been families wanting to knock down and build their dream home while the rest were planning to renovate the existing house.Ray White Port Adelaide agent Rick Schultz is predicting a big crowd at the auction of 31 Vincent St, Hendon (pictured above) which has recently been renovated while office principal Nick Psarros is confident of a successful result at 7 Selkirk Ave, Seaton.