Tide start­ing to turn

Herald Sun - Property - - MARKET WRAP - WITH PETER FARAGO

COULD the pen­du­lum in the real es­tate mar­ket fi­nally be swing­ing away from in­vestors and back to home­buy­ers?

There was a time not too long ago when home­buy­ers were be­ing priced out of many auc­tions by in­vestors, armed with eq­uity and bank man­agers will­ing to deal.

But the Aus­tralian Pru­den­tial Reg­u­la­tion Au­thor­ity started putting the brakes on the in­vestor mar­ket ear­lier this year, di­rect­ing banks to limit their ex­po­sure to that sec­tor of the mar­ket.

As a re­sult the ma­jor banks have in­creased in­ter­est rates on in­vest­ment loans.

WBP Prop­erty chief ex­ec­u­tive Gre­ville Pabst be­lieves the tighter lend­ing re­quire­ments for in­vestors has seen the tide turn in favour of owner-oc­cu­pier home­buy­ers.

“It’s no se­cret home­buy­ers out­num­ber in­vestors, but un­til now many home­buy­ers couldn’t com­pete with the deep pock­ets of in­vestors fu­elled by record low in­ter­est rates,” Mr Pabst said.

He said home­buyer de­mand was strong­est for en­try-level houses and apart­ments, blocks with de­vel­op­ment po­ten­tial, fam­ily homes and prop­er­ties in lo­ca­tions close to ameni­ties.

While home­buy­ers are start­ing to get a bet­ter run at the auc­tion mar­ket, anal­y­sis of re­sults re­ported to CoreLogic RP Data last week show an even spread of mar­ket per­for­mance across the city.

CoreLogic RP Data recorded a pre­lim­i­nary clear­ance rate of 78 per cent from 856 re­ported auc­tions last week­end.

Mel­bourne’s outer east re­gion con­tin­ued to lead the way, with a clear­ance rate of 86.4 per cent from 59 re­ported auc­tions. All other re­gions posted clear­ance rates in the 70 per cent range.

The south east was the next strong­est re­gion, with a clear­ance rate of 78.5 per cent.

Among the suc­cesses was the four-bed­room pe­riod home at 2 Davies St, Brighton East, which sold un­der the ham­mer for $1.59 mil­lion.

Hodges, Brighton, agent Russ En­ti­cott, said the fam­ily that bought the house on a 630sq m block was among four bid­ders at the auc­tion.

His of­fice also scored a $1.61 mil­lion sale at 7 Mur­rum­beena Cres, Mur­rum­beena.

An open­ing bid of $1.3 mil­lion was made for the fourbed­room house that the own­ers bought four years ago for $980,000.

A fam­ily snapped up 2 Davies St, Brighton East, at auc­tion last week­end for $1.59 mil­lion.

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