Melbourne heads for biggest online auction week as APRA tightens lending

Melbourne is gearing up for its biggest weekend of online auction action yet. But even with numbers set to hit record highs in the summer, there’s bad news for first-time homebuyers.

More Melbourne homes will come under the hammer online this weekend than ever before, and the numbers are expected to continue to rise to a potential record summer record.

However, the home sales windfall could come too late for some first-time homebuyers after the Australian Prudential Regulation Authority ordered the country’s banks to tighten home lending this week.

A whopping 1,118 homes are expected to come under a hammer in the seven days to October 10, marking the city’s third-biggest auction test this year.

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63 more are planned in regional areas, a few dozen of them will be held in public where containment is not in place. auction forecasts predict that there will be over 1,350 outfits in Melbourne next week, and a whopping 1,446 the following week, potentially equating to the busiest week so far this year. in March.

The rising numbers come after APRA announced that banks should rate loans based on the buyer’s ability to pay an interest rate 3% above its original rate, which is estimated to be 5% what the average borrower can access. Senior Economist Eleanor Creagh said it was difficult to determine who was borrowing the most, an “educated guess” would include first-time homebuyers – as well as investors using home loans. interest only.

“We already know that we have a problem accessing the Australian property market and this tends to affect first-time homebuyers and the younger generations more,” said Ms Creagh.

“But we know the majority of people are not borrowing to their maximum capacity, so the impact on the housing market and price growth will be small.”

Newly-elected President of the Real Estate Institute of Victoria, Adam Docking, said Melbourne will host more than 1,000 online auctions for the first time this week.

Mr Docking also predicted Melbourne could see unprecedented auction numbers with the onset of summer, if the industry hopes agents will resume valuations once Victoria hits the 70% double-vaccination milestone. will take place on October 26.

“If we are looking to get out of lockdown on the 26th and can do assessments, the end of November and the first weekend in December are going to be crazy,” he said.

“We are going to reach record levels. “

Online auction platforms expect tens of thousands of punters to tune in for sales this weekend.

Gavl chief executive Joel Smith said they expected at least 15,000 people to connect to around 150 auctions this weekend, through their network, social media and the The Herald Sun Live Blog.

“It’s a live event, it’s actually television,” Smith said.

Anywhere Auctions chief executive Gary Giritharan said with up to 240 auctions to air on their platform this weekend, they could have as many as 30,000 viewers.

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Originally published as Melbourne heads for biggest online auction week as APRA tightens lending

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