- Despite lockdown, NSW online auctions are on average recording 10 bidders per property
- Buyers aren't abandoning plans, Mr McKibbin says
Although Sydney’s ongoing lockdown has made some vendors nervous about selling their property, the data shows that they shouldn’t be, according to Tim McKibbin, CEO of the Real Estate Institute of New South Wales (REINSW).
Mr McKibbin said that given there is an average of 10 registered bidders per online auction and clearance rates around 80% according to sources such as CoreLogic, vendors shouldn’t consider delaying the listing for their property, even amidst a lockdown.
Today, NSW recorded 356 cases, the highest for the state since the Delta wave began.
“Obviously the lockdown impacts the way transactions must occur but it is not impacting demand,” he said.
“Technological advances in the way properties are presented, shown and sold are a worthwhile investment by agents for those buyers happy to proceed without physically experiencing a property first.
Tim McKibbin, REINSW CEO
“Lower auction volumes are a natural result of lockdown as some vendors hit the brakes until the lockdown-exit path becomes clearer.”
He noted that buyers aren’t abandoning their property plans during the lockdown and once lifted, as happened last time, the market would quickly regather momentum.
“In the meantime, agents will continue to do what they can in a COVID-safe manner, and constrained supply will continue to support prices,” added Mr McKibbin.
“There has been speculation recently that the current COVID outbreak may take some of the heat out of the property market.
“But it’s hard to argue selling conditions could be any more advantageous for vendors than they are at present. For those thinking of selling, the time is now.”
Matt Lahood, Real Estate CEO of ASX-listed The Agency (AU1), talking on a webinar today, agreed.
“in the first lockdown last year, it was tools down, what’s happened?” he said. “But this time, there has not been an evaporation of supply and demand at all. In fact, with spring around the corner, and pent up demand, my agents and vendors are saying they are ready and revving their engines.
“Auction clearance rates have been above 70% every weekend this year, even in lockdowns,” he said.