One of Australia’s largest real estate groups has indicated it is looking forward to an “outstanding 2021” after flagging a strong December performance.
After buyers sat on their hands for the most part of 2020 due to COVID-induced declines, buyers flocked back into the market as property started to show signs of recovery by the end of the year.
Ray White Group has stated that such intense buyer activity was proven by the group’s continued record-high auction clearance rates in December.
It also pointed to higher auction prices being achieved under the hammer as further evidence, with offers, in their experience, being 11.24 per cent higher than the highest offers pre-auction.
Looking to 2020 as a whole, Ray White said all markets were able to set record months throughout the year, with regional markets regularly outpacing the capital cities. This trend also occurred across all property price brackets.
Weighing in, Ray White managing director Dan White said such metrics “continue to give us confidence that the current extraordinary momentum should endure well into 2021, especially as our central bank continues to forecast very low interest rates for at least the next three years”.
While there were less investors in the market last year, reflecting softness in the inner-city rental market, home buyers were still actively pursuing purchase leads, with most of them relying on auctions to get a feel of the broader market, the brand reported.
Mr White added that 2020 “was also a year for the true believers of the auction method”.
“In times of uncertainty such as what we experienced during lockdowns, we believe that buyers need to see clear evidence of other buyers and their bidding intentions in order for them to transact. So, we put everything into auctions,” he reflected.
Overall, Ray White reported a 70.8 per cent clearance rate from 2,623 auctions scheduled in December 2020.
2021 growth path
Ultimately, the Australian property market did show continual strength in 2020 despite numerous COVID-19-induced restrictions and lockdowns.
Buyer activity was not the only way property rebounded, with property prices across the country also improving, by an average of 3 per cent throughout 2020, CoreLogic highlighted.
Even with varying expectations and predictions for the property market, Ray White stands firm in its belief that 2021 will continue on the same growth path.
“[Our results] have given us the confidence that 2021 will continue on the same growth path. There remains more certainty now that the economy is entering 2021 with quite a lot of momentum,” Mr White considered.
He acknowledged that while future conditions are always difficult to predict, “we have only ever suggested that our members and customers carefully review all activity in the market now”.