The property market is set for a busy weekend despite the replay of the AFL Grand Final, with hundreds of auctions still scheduled for Saturday and Sunday in the nation’s strongest property market.
But analysts say it is still too early to determine how the market will perform and whether a lack of buyers will bring prices down, with some saying buyers will turn out in force despite the first Grand Final replay in over 30 years.
Figures from Australian Property Monitors indicate there are 685 auctions slated to go ahead this weekend in the Melbourne area, while the Real Estate Institute of Victoria says about 470 auctions will go ahead.
The REIV also points out 115 auctions have been moved from this weekend to next weekend, with buyers unwilling to take their chances in taking on the biggest sporting event of the year.
APM general manager Anthony Ishaac says the market will “definitely” be impacted by the Grand Final, but to what extent, it is impossible to know.
“We simply don’t know what’s going to happen. The tracking of the advertisements suggests the auctions are still going ahead. Their success is going to be impacted by the Grand Final, but to what extent it’s difficult to say. It’s still entirely speculation.”
Others are more confident the market will perform well. SQM Research founder Louis Christopher says buyers won’t sacrifice their “dream” property because of the final – no matter how football-crazy they are.
“I’m still of the strong opinion that buyers will turn up. It’s selling day and buyers will not miss an opportunity to buy a property they have in mind simply because the football is on. All in all I think it’s very unlikely they won’t turn up, although clearance rates may be lower because we’re definitely heading into spring now.”
REIV spokesman Robert Larocca says the amount of auctions being moved – about 20% of the overall total – is what the institute expected, and points out that many of the auctions are being held before the Grand Final begins.
“That number is about right, because when you think it through, it’s not a simple thing to move an auction. It’s hard to move because many households have put money into marketing, and the big major point of that is that your house is being sold at a particular time and a particular place.”
“A lot of vendors have to think very carefully about moving their auction. You also have to consider how many auctions will be on next week – do they want to move to another weekend with 700 auctions and compete against those? They’re also competing against the biggest football event of the year.”
Larocca says it is simply too early to predict what the outcome might be, given that an AFL Grand Final hasn’t occurred for decades.
“This will be absolutely fascinating, because we usually don’t have this level of auctions up against a big event. Every other Grand Final or election weekend since 2000 has seen listings drop. It’s an interesting test for the market and it will be fascinating to see how the industry performs.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
