It is official, Australia’s property market has reached fever pitch. Potential buyers are throwing caution to the wind and stripping crucial conditions from their offers in a bid to secure a home.

Alarming new data reveal mortgage pre-approvals have skyrocketed to unprecedented levels across Australia, creating a cut-throat environment where buyers are making unconditional offers, exposing themselves to massive financial risks.

The Melbourne suburb of Ringwood leads the charge with a 500% increase in comparison to the 3rd quarter of last year. Brisbane’s Fortitude Valley came in second with an increase of 373%, and Surfer’s Paradise was 3rd with a 330% increase. Box Hill in Melbourne was 4th at 267% and Hurstville in Sydney came in 5th at 220%.

Other states also showed an increase, with SA represented by Modbury at 160%, Darwin at 171% and Hobart’s Park Grove at 71%.

This unprecedented demand is largely attributed to a potent cocktail of rising property values, significant interest rate cuts by the Reserve Bank of Australia – a substantial 75 basis points this year – and the Australian Government’s 5 per cent Deposit Scheme for first homebuyers, which changed some of its rules on October 1st.

Having a pre-approval allows you to know exactly how much you can borrow and repay, helping you pinpoint the suburbs within your price range and confidently make offers within your budget.

Get in touch if you want to start the journey or explore your borrowing capacity!