Australia's response to the COVID-19 epidemic has been able to secure and maintain local demand for goods, according to the latest analysis from estate agents McGrath.
John McGrath, founder of McGrath Estate Agents, said that Australia was able to handle the epidemic "exceptionally well", which allowed it to ease restrictions sooner than expected .
"Australia now has a roadmap for COVID-19, with social restrictions relaxed last week in the first stage of a three-stage process and the restart of openings and auctions on across the country, "he said in a reflection piece in The Real Estate Conversation.
McGrath said the latest auction data showed an "immediate and impressive rebound" in demand from local buyers.
Read also: Has the property proven its resilience?
Recent figures from CoreLogic show that despite moderate auction activity, successful sales rates have returned to more than 50%. Over the weekend, 400 homes were to be auctioned off, returning a preliminary liquidation rate of 64%.
"Sydney had an auction closeout rate of 70% that day – the highest result since mid-March before the opening and on-site auctions were banned," said McGrath. "The data shows that fewer properties are withdrawn and more are auctioned off, which indicates that homeowners feel more confident about auctioning rather than selling before."
Auction activity is expected to improve in the coming weeks as restrictions continue to moderate.
In terms of real estate prices, McGrath said they had managed to weather the midst of the epidemic.
A separate CoreLogic report shows that house prices remained on an uptrend in April. However, the pace of growth seems to have already slowed down.
While strong demand from local buyers will help build confidence in the real estate market, McGrath said Australia still needs to regain its appeal to foreign investors.
According to the FRIB (Foreign Investment Review Board) report for the 2019 financial year, international investments totaled $ 14.8 billion last year, which is significantly lower than investments of 72, $ 4 billion recorded in 2016.
"This is partly due to the tightening of capital controls in China, which has resulted in far less outbound investment since 2016. China has been our biggest real estate investor for several years, but today Today, the United States is number one, followed by Canada, Singapore, Hong Kong, and then China, "said McGrath.
The FIRB report cited the increase in state taxes and foreign stamp duties as the main factors behind the decline in investment.
McGrath said governments should consider revising these taxes to encourage foreign buyers to invest in Australia.
"Australia has proven to be a safe haven for investments during GFC and now, once again, we are a remarkable success in our political and economic management of another event global, "he said. "We have to get rid of these taxes and put the welcome mat on foreign investment again," he said.
Main suburbs:
Woolloongabba
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melton
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albion
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north epping
,
loror park
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