The Australian property market feels like 2017 again, when sales were peaking and an intervention was imminent

PHOTO: Property Auction. (Peter Rae, SMH)

The latest CoreLogic data shows Australia’s property market is firing on all cylinders, mirroring the last price peak seen four years ago.
Back then the heat in the market was enough to force regulator APRA to make a move, restricting the flow of credit into the market and putting an end to soaring prices.
This time around, regulators are expected to make similar moves if the market doesn’t slow down of its own accord, as lending growth runs away and prices break record highs.

Property prices continue to break record highs but the market is experiencing a real sense of deja vu.

Some 31,605 homes were taken to auction across the months of April, May and June –12,600 more than the previous quarter.

It marks the busiest period of auctions since the final three months of 2017 when just 800 more homes were on the market, according to CoreLogic data.

The results reflect a clear appetite in the market, with three in four homes in Australia’s combined capitals selling, and property values rising by more than 6% in just three months.

Considering record low interest rates, easy monetary policy and generous government stimulus, it is little wonder there’s so much heat in the market.