Buyers Rush Property Market Amid Rate Cuts

Homebuyers are acting quickly to secure properties as interest rates fall. This is fueling a nationwide auction surge that is lifting market confidence and bringing renewed attention to housing affordability concerns. A third rate cut could arrive within days, helping push the national preliminary clearance rate to 73.1% with major cities such as Sydney and Melbourne driving the trend.

After a slow start to the year, the property market is gaining momentum due to two recent interest rate cuts. Growing expectations of further rate relief are giving buyers more borrowing power, prompting increased activity at auctions. Strong clearance rates have been recorded consistently over the past month and confidence appears to be spreading across the sector.

According to property data group Cotality, the preliminary auction clearance rate has stayed above 70% for eight out of the past ten weeks. Sydney recorded a success rate of 72.5% and Melbourne rose slightly to 75.5%. Smaller markets including Brisbane and the ACT also surpassed the 70% mark, showing broad-based demand among buyers.

In several suburbs, buyer optimism is translating into record-breaking sales. A full-floor apartment in Sydney’s inner west recently sold for $6.385 million, well above its $6 million reserve, setting a new benchmark for units in the area. The surge in demand is not limited to luxury or one-of-a-kind homes. Agents report higher levels of inquiries and more active participation at auctions across a wide range of properties.

This uptick in activity may mark the beginning of a new phase in Australia’s housing market. Short-term confidence is building, but if prices continue to rise, affordability could become a major issue again. The actions of policymakers, especially during this week’s central bank meeting, will likely play a key role in
shaping what comes next for the market.

Source: Australian Financial Review, Property Update , Aus Property Professionals