Melbourne property experts say weak auction results and state tax pressure have left buyers and sellers waiting for a political circuit-breaker.
Melbourne’s battered property market is begging for a political lifeline.
Property experts say a Liberal election victory could break what they describe as a tax-induced market freeze after auction clearance rates sat at just 54.4 per cent on Saturday.
PropTrack auction results show Melbourne recorded the weak result from 395 reported auctions, with 215 homes sold.
The city’s top auction result was 12 Aberfeldie St, Aberfeldie, which sold for $4.675m.
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It was followed by 25 Levien St, Essendon, at $2.8m; 42 Thompson St, Avondale Heights, at $2.035m; 513 Canning St, Carlton North, at $1.985m; and 10 Diamond St, Essendon West, at $1.675m.
Opposition Leader Jess Wilson’s promise to scrap stamp duty for first-home buyers on homes worth up to $1m has emerged as the sector’s circuit-breaker.
Property experts warn Labor’s land tax, rental and planning agenda has left buyers, sellers and investors frozen ahead of the November 28 state election.
12 Aberfeldie St, Aberfeldie, topped Melbourne’s reported auction sales at the weekend, selling for $4.675m.
M R Advocacy director Madeleine Roberts said a change of government would lift confidence among Victorian buyers and sellers.
M R Advocacy director Madeleine Roberts said a change of government would lift confidence among buyers and sellers.
“100 per cent,” Ms Roberts said.
“I think, particularly for Victoria, people lost confidence in the government a long time ago.
“I think, yeah, a change of government would 100 per cent help people feel more confident.”
Ms Roberts said the Liberals’ stamp duty pledge would help buyers and could allow Victoria to wind back what she described as “ridiculous reforms”.
“I think it would definitely help buyers if we scrapped stamp duty, because that won’t affect the sellers,” she said.
“I think then we can backtrack on some of these ridiculous reforms that are already causing havoc and they’re going to continue to do so.”
Ms Roberts said mum-and-dad investors had been left without a voice in the housing policy debate.
“At the moment, there’s no one protecting the landlords, and it’s really quite unfair,” she said.
“These people are already scraping by, and there’s no one actually representing or protecting them.”
Belle Property and Hockingstuart Victorian director Anthony Webb said Melbourne auction clearance rates were among the weakest he had seen in almost three decades.
25 Levien St, Essendon, was one of Melbourne’s biggest reported auction sales, changing hands for $2.8m.
Belle Property and Hockingstuart Victorian director Anthony Webb said the auction market was being hit by a “culmination of uncertainty”.
“I guess the auction clearance rate is probably as low as I’ve ever seen it in my sort of 26, 27 years,” Mr Webb said.
“People are just uncertain about what’s happening. What do all the changes mean? Are interest rates going to go up?
“So therefore people are just sitting back and waiting.”
Melbourne’s auction clearance rate sat at to 54.4 per cent from 395 reported results, according to PropTrack.
42 Thompson St, Avondale Heights, sold under the hammer for $2.035m.
Mr Webb said Victoria’s housing market had been suppressed compared with the rest of the country, with the election adding another layer of caution.
“We need that hope or that glimpse that things are potentially going to get better, particularly from a property point of view, and I think the election is one of those things,” he said.
Former Real Estate Institute of Victoria president Geoff White said elections had historically caused buyers and sellers to delay decisions.
But he said a change of government could give the market a reason to move again.
“Leading up to an election can mean that there’s some stagnation in the market, and then once the election is over, particularly if there’s a change of government, it can give some incentive to people to move on and transact,” Mr White said.
Former Real Estate Institute of Victoria president Geoff White said Melbourne buyers should not wait for the election if they found the right home.
513 Canning St, Carlton North, was among the city’s top auction results, selling for $1.985m.
Mr White said the Andrews and Allan Labor governments had held back Victoria’s housing market.
“I think the data proves it,” he said.
“Why have all the other states, over recent years, seen growth in dwelling values, but Victoria hasn’t?
“You’ve got to attribute a fair proportion of that to government and their policy.”
Mr White warned buyers not to wait for the election, rate cuts or the bottom of the market if they had found the right home.
“If the property ticks most of the boxes, don’t wait. Buy it now,” he said.
“Get in now, now’s the time. I don’t believe the market will fall further.”
10 Diamond St, Essendon West, rounded out Melbourne’s top five reported auction sales at $1.675m.
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