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Will the reintroduction of auctions kickstart the property market?

08 May 2020 Cameron Micallef
Eliza Owen

Real estate agents relying on changing regulations to open home inspections might not have the change in fortunes they are hoping for, an industry expert argues.

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According to CoreLogic’s head of research Eliza Owen, the biggest impact on the current market has nothing to do with the restrictions placed on it by the government.

“Ultimately, being able to look at property, and bid publicly on property, does not increase capacity to buy property,” Ms Owen stated.

Instead, the property expert argues that the property industry will follow the rest of the Australian economy, with uptick in prices reflecting the rest of the economy.

“The real estate industry is likely to see a recovery when other sectors return to normal operations and consumer sentiment lifts from its current low,” Ms Owen said.

Agents argue that they are struggling to create competition due to a lack of buyers as well as a lack of properties being available to sell.

“Property would increase productivity for agents, and potentially for agents enabling more stock to come to market,” Ms Owen said.

“Public auctions may expose buyers to their competition, which is a market where prices are rising, could induce people to make higher bidders become competitive.”

Ms Owen’s statement follows a 40 per cent reduction in transactions across April as the unemployment rate rose and consumer confidence crashed to record lows.

Will the reintroduction of auctions kickstart the property market?
Eliza Owen reb
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