Corelogic

Why Australia’s property prices will continue to soar

PHOTO: Real estate agents have been busy in recent times as the property market continues to prosper.(ABC News: Eliza Laschon)

Across the suburbs, they’re lining up for home inspections.

With COVID-19 restrictions, only a handful are allowed in at a time.

The queues, for units in particular, stretch down the stairwells and spill outside.

In some regional areas, particularly coastal locales, the situation has reached fever pitch.

Prices in some areas are up by more than a third in the space of a year as cashed-up buyers fleeing the cities head for the country with dreams of permanently working from home.

Regional prices rose 1.6 per cent in January, more than double that of the main capital cities.

Auction clearance rates are hurtling towards a perfect score in some cities.

Canberra recently clocked up clearances in excess of 90 per cent while Sydney has pushed way above 80 per cent; rates that indicate extremely tight conditions.

When Corelogic tallied the final numbers on Friday, the previous weekend’s national auction clearance rate hit a six-year high at 79.3 per cent.

The preliminary results from Saturday indicate an even stronger performance at more than 86 per cent.

A fortnight ago, Australian real estate prices lurched back into record territory — and there is no end in sight.

With interest rates locked in at a whisker above zero — and with Reserve Bank assurances they’ll stay put for the next four years — it’s little wonder buyers are scrambling for a piece of the action.

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