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Property auctions are about to skyrocket, here’s why

Sydney CBD. Source: Getty

It was a weekend of shock results, with Saturday’s Liberal Party win not the only outcome to surprise Aussies as auctions saw homes actually pull some big numbers.

Michael Yarndey’s Property Update reported that election day saw slightly subdued auction markets, with only 59 per cent of the listed 181 homes in Sydney clearing at auction compared with 60.1 per cent last week.

Adelaide suffered a bigger hit with only 54.5 per cent of listed homes clear compared to 70.1 per cent last week, but Melbourne, Brisbane and Canberra saw their clearance rates jump on the previous week.

But while election day muddied turnouts, Domain saw some multi-million dollar auction sales across Aussie east coast capitals.

As voters headed to the polls, it appears they were also stopping into auctions along the way.

“There were people who dropped by to have a sticky beak, so there was a lot of foot traffic,” selling agent Keith Mahon told Domain.

One of Sydney’s best results was an auction at 14 Blandford Avenue, Bronte, which sold for an undisclosed amount, but was believed to be over a whopping $4 million.

14 Blandford Avenue, Bronte. Source: Domain

In the Melbourne suburb of Camberwell, a four-bedroom manse was auctioned off for a huge $4.6 million, and attracted a crowd of at least 100 people.

61 Prospect Hill Road, Camberwell. Source: Domain

Domain reported multiple multi-million dollar sales that weekend, which was surprising given it was a polling day.

“I think a lot of people have been waiting for this moment to come and go [before deciding to buy or sell],” Kay & Burton South Yarra partner, Michael Armstrong said.

So what happens next?

And with the election over, Domain economist, Trent Wiltshire, says he expects more auctions on the horizon in coming weeks as policies for investors and property buyers are finally clear.

“There is likely to be a bit of a bounce in auction volumes and sales, as the uncertainty created by the election has likely contributed to the record low sales volumes in recent months,” Wiltshire said.

Meanwhile, according to Yarndey our property markets are set for good times as a Liberal government means there are no changes to negative gearing or capital gains tax, which will encourage investors.

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