Melbourne is bracing for an auction explosion this weekend as agents warn Victoria’s growing property tax burden is spooking buyers into a sharp borrowing pullback.
PropTrack data shows 1351 auctions are scheduled across the city this week, up 16 per cent year on year, with 2010 set for next week, a 39 per cent surge ahead of Easter.
The spike comes as buyers remain active but increasingly cautious, with many now refusing to borrow to their limit as mortgage pressure and rising property taxes bite.
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Real estate agents warn Victoria’s growing property tax burden is spooking buyers into a sharp borrowing pullback.
Frame Finance director and mortgage broker Imogen Alexy said borrowers were deliberately holding back and building a buffer rather than maxing out.
“Buyers are not wanting to max out their borrowing capacity anymore,” Ms Alexy said.
“They want to leave a buffer in case rates continue to rise.”
Ray White chief auctioneer Luke Banitsiotis said Victoria’s conditions were being shaped by more than just interest rates, pointing to state tax and policy changes impacting investors.
“In Victoria, it is not just about interest rates,” Mr Banitsiotis said.
“You have got to factor in state tax and policy changes impacting investors, and broader cost of living pressures.”
“I have got an auction this weekend with six registered bidders,” he said.
“When you have that level of competition, you are going to see a strong result.”
Mr Banitsiotis said Victoria was still offering relative value compared to other states, even as local buyers adjusted their expectations.
“If you look nationally, Victoria is arguably one of the best places to be buying right now,” he said.
“In markets like Queensland and South Australia, prices have been accelerating at a rapid pace.”
Around 1351 auctions are scheduled across the city this week. Picture: NCA NewsWire / Aaron Francis
Buxton Mount Waverley agent Peter Serafino said the fiercest competition was in the $800,000 to $1.5m range, where family buyers were battling for limited stock, particularly in tightly held school zones across the Monash corridor including Mount Waverley and Glen Waverley.
“That $800,000 to $1.5m range is still very competitive, and that is where most owner occupiers are trying to get into the market,” Mr Serafino said.
At the upper end, he said conditions were more subdued.
“From about $2.5m and above, things can move a little slower,” he said.
But with more listings hitting the market and buyers pulling back on borrowing, the coming weeks are set to test whether buyers can keep competing without stretching their finances.
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