

Melbourne auctions hit 2-year high
4 snips Jul 26, 2025
Melbourne's auction market sees a notable surge as buyer activity spikes. The hosts discuss the impact of APRA's current macroprudential settings on housing supply. There's a call for reform in capital gains tax to better support housing policy. The balancing act of rising house prices and limited listings raises questions about the future of the market. They also explore the challenges first-time buyers face in securing mortgages amidst stricter lending conditions and increasing investor presence.
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Melbourne Auctions Surge
- Melbourne auctions hit a two-year high with a 76.6% clearance rate, signaling strengthening market conditions.
- This rise is driven by significant under supply of listings, down 20% year-on-year, fueling competitive buyer demand.
APRA's Serviceability Buffer Impact
- APRA keeps mortgage serviceability buffer at 3%, despite interest rate cuts and potential market cools.
- This policy limits borrowing and excludes many first home buyers, possibly increasing risks elsewhere in the housing market.
Macroprudential Measures Divert Risks
- The macroprudential measures like serviceability buffers often divert lending risks rather than eliminate them.
- Tight lending pushes borrowers to smaller lenders or investor-driven markets, impacting first home buyers negatively.