Hi,
The second week of lockdown didn’t deter hundreds of vendors moving their onsite auctions to online with 443 auctions reported to the REIV. This was down on the previous week but up on the same time last year which only produced 293 auctions. Another high clearance rate of 94% was achieved however 527 auctions were postponed so it is not a true reflection of what the market would have produced had lockdown not occurred. Of the 443 auctions, 418 sold (with 202 of these selling before auction and 216 sold at auction), 155 were withdrawn and there were an additional 190 private sales.
With promising signs that lockdown will cease tomorrow night, the state government has given a stern warning that restrictions will be in place for quite some time to come. Whilst we may be able to inspect properties again, it is likely these will either be private inspections with capped numbers and auctions will again be either outdoor only with limited numbers or still online. Hopefully we will hear an announcement today.
The auction of 21 Aberdeen Grove, Northcote was scheduled to go to auction last Saturday but was brought forward due to an ‘acceptable’ offer being received. The property had been quoted $1,400,000 to $1,500,000 prior to auction with an offer well above this range triggering the property to sell before auction. Three additional buyers were wanting to challenge the offer so a zoom auction was then scheduled. The auction ended up with four bidders in total and sold well above its reserve price for $1,811,000.
Have a great week.
Kim Easterbrook
Hi,
The sudden announcement of a fifth lockdown in Victoria threw the weekend’s Super Saturday auction calendar into chaos yet once again. Some auctions were moved from Saturday to Thursday night (pre-lockdown) in order to have the auction on site, some moved to online, some sold before auction and some have been postponed. 525 auctions were still reported to the REIV which just shows how well we have been able to adapt in the event of a snap lockdown.
Of the 525 auctions reported, 315 sold at auction, 43 passed in, 166 sold before auction and 1 sold after resulting in a clearance rate of 92%. There were an additional 175 private sales. Due to 293 auctions being postponed, the clearance rate doesn’t give an accurate indication of what would have been had all properties gone to auction but it does still demonstrate strong buyer activity in the market.
Super Saturday weekened online auctions produced some strong results over the weekend and the auction of 23 Allnutt Parade, Cheltenham was one of them. The renovated, five bedroom, three bathroom home was quoted $1,240,000 to $1,320,000 prior to auction with six bidders participating driving the price to $1,564,000.
The REIV released its June quarterly report showing the median house price in Melbourne held steady at $1,010,000 and in regional Victoria is increased to $559,500. The median house price across regional Victoria rose 10.5 per cent over the quarter resulting in a 20 per cent annual growth in house prices.
Other findings of the report were:
– there was an increase from 155 to 177 metropolitan suburbs having median house prices over $1,000,000;
– auction clearance rates have been above 80 per cent for all of 2021 with June having the most amount of auctions reported;
– The median house prices in Greater Geelong increased 7.9 per cent in the June quarter to $695,000;
Have a great week.
Kim Easterbrook
Hi,
Auction numbers were high on the weekend with 958 auctions across Melbourne. 606 sold at auction, 150 sold before auction, 202 passed in and there were an additional 158 private sales.
Over the past two weeks, we have seen real a disconnect in some agents price guides and reserve prices. A few of years ago this would be have an intentional act by some selling agents quoting the property lower to generate buyer interest. However, I don’t believe this is currently the case. It seems that some vendors are becoming overly excited about the sales results of other properties and setting high reserves on the day of auction. I even attended an auction where the vendor instructed the agent to just pass the property in, regardless of where the bidding landed. I have witnessed some agents frustrated by this and I believe that is why we have seen a slight dip in the clearance rate. Not due to lack of buyer interest, but due to some vendors being overambitious on their price expectations.
We attended some very competitive auctions on the weekend with the auction of 267 Clarke Street, Northcote being one of them. This unrenovated three bedroom, one bathroom California Bungalow on 529 sqm with rear laneway access. The property was quoted at $1,800,000 to $2,000,000 before auction and had generated serious interest with many buyers inspecting the property throughout the sales campaign. The auction commenced on a genuine bid of $1,800,000 from one party with another four bidders jumping in to try and secure the home. The property was announced on the market at $2,000,000 and sold for a huge $2,415,000. The bidders were all young, professional couples and families.
The auction of 942 Lygon Street, Carlton North which is an unrenovated but impressive Victorian terrace was also very well attended and was quoted before auction for $1,550,000 to $1,705,000. A strong opening bid of $1,650,000 started the auction off with another four bidders participating where the property was announced on the market at $1,700,000. The property sold for $2,156,000. A very big result for the vendor and whilst the property had an incredible facade, it did require a lot of work and was located on a busy, main road.
Have a great week.
Kim Easterbrook
Hi ,
Auctions were back on the weekend with the REIV reporting 543 auctions with a clearance rate of 83%. 314 sold at auction, 135 sold before auction and 719 postponed. There were an additional 133 private sales reported. This time last year there were 438 auctions with a clearance rate of 67%. The next two weekends are predicted to produce very high numbers of auctions as we play catch up from lockdown 4.0.
Winter and school holidays historically results in a slow down in the amount of properties for sale however the fourth lockdown may have made some vendors nervous about putting their property on the market for fear of further interruptions. Stock levels are low across Melbourne and Regional Victoria. New sales campaigns have been delayed as stylists and photographers were unable to get access to properties during the two week lockdown.
Vendor’s need not fear about putting their properties on the market. As an industry, we have adapted extremely well and properties have still been selling under strong competition. That being said, the panic and FOMO we experienced at the start of 2021 has eased.
An unrenovated house at 8 Lysterville Avenue, Malvern went under the hammer on the weekend. The property last sold in 1997 for $440,000. Four bidders participated in the auction after an opening bid of $2,500,000. The property was announced on the market at $2,650,000 and sold for $2,940,000.
Villa units are continuining to show their popularity and 2/4 Sandford Street, Highett was no exception. Investors, first-home buyers and downsizers were all in the mix to secure the property which was quoted at $600,000 to $660,000 prior to auction. Six bidders pushed the final sale price to $743,000.
Have a great week.
Kim Easterbrook
Hi,
A strong clearance rate of 96% was achieved over the weekend with 565 online auctions conducted. The final result for the previous weekend was 869 auctions and a clearance rate of 93%. In comparison, the same weekend last year produced only 159 auctions and a clearance rate of 67%. It must be noted that these results do not take into account the properties that have been converted from auction to private sale nor the auctions that have been postponed until after lockdown. However, it does tell us is that almost every property that went to auction….sold. There were an additional 183 private sales and lockdown has certainly not impacted on the amount of property transactions too dramatically.
Melburnians’ are hoping for some good news that lockdown will end this week and we are expecting an extremely busy few weeks in the real estate market playing catch up. My company, once again has experienced strong new buyer enquiry over the past week and a half with investors making up a large percentage of this enquiry.
With currently no population growth in Melbourne, and even some long term residents moving to the country/sea, there is still a strong demand for buyers to invest their dollars into the Melbourne property market. We have seen how property prices have soared in Sydney to unaffordable levels and a large majority believe that Melbourne property prices will follow suit (and already are). Property prices have remained very resilient throughout the biggest test it has ever experienced (a pandemic). Population growth is expected to resume once the international boarders open due to immigration. Investors have also had particular interest in buying in Geelong and Ballarat. This is due to these locations being a lot more affordable than Melbourne and both towns also offering a great life for families with very good private and public schools.
Unfortunately, first home buyers are the casualty here with strong demand further pushing them out of the property market. There is no surprise that the banks are seeing a decline in first home buyer lending with Melbourne’s median house price now tipping over $1,000,000. This will likely result in more first home buyers opting to rent or looking at properties at a more affordable price point, eg. apartments or properties further out from the CBD.
Have a great week.
Kim Easterbrook
Hi,
Last weekend was set to be Melbourne’s second biggest auction weekend of the year, with over 1,400 auctions booked in. However, the real estate industry was thrown into chaos on Thursday with the announcement of lockdown 4.0. As a result, many properties were sold before auction, auctions were being postponed, others converted to online auctions and some changed to private sale.
In the end, 724 auctions were reported to the REIV resulting in a clearance rate of 93%. This clearance rate is not accurate due to the amount of postponed and withdrawn auctions. However, what it does tell us with the ones that still proceeded to auction, most sold.
Victorian’s have had to deal with so much over the past 14 months but one thing is for sure we have become great at adjusting to lockdowns at short notice. The industry is still able to operate but only in the comfort of our own homes. No open homes or private inspections are allowed and that includes for both selling and renting and only services relating to property settlement or commencement/end-of-lease (including removalists) are permitted.
Lockdown also did not stop some strong auction results with a house in Brighton East selling $560,000 above reserve. 9 Stone Street, Brighton East is a five bedroom, three bathroom period home on the non-beach side of Nepean Highway. Six bidders participated in the online auction with the property selling for $3,060,000.
Quality villa units continue to be in strong demand. 4/204-205 Beach Road, Mordialloc had 8 parties attend the online auction. A strong opening bid of $960,000 knocked most of the bidders out and two bidders went back and forth until it sold for $1,010,000.
Have a great week.
Kim Easterbrook
Hi,
Melbourne’s auction clearance rate remained consistent over the weekend with 934 auctions reported achieving a clearance rate of 81%. 760 properties sold, 174 passed in and there were an additional 193 private sales.
The consistent high auction weekends have bought more choice to keen buyers which has resulted in a more balanced market for buyers and sellers. The fierce panic in the market seems to have faded with more buyers willing to wait until their ideal property comes onto the market. That being said, many properties are still selling well but with less bidders per property and fewer run away results than we were experiencing a couple of months ago.
One of the last remaining large parcels of land went to auction in Box Hill on the weekend. The block was 1,632 sqm and was quoted conservatively for $3,000,000 to $3,300,000 prior to auction. Four bidders pushed the property well passed this where it was announced on the market at $3,725,000 and sold for $4,062,000.
A house in Spotswood had huge competition at auction with an advertised vendor’s reserve prior to auction of $950,000. The house flew past this price within two bids with a mix of buyers from investors, first home buyers, families and downsizers trying to secure the home. The property sold for $1,200,000.
Have a great week.
Kim Easterbrook
Hi Nikki,
Another high volume auction weekend with 978 auctions reported to the REIV achieving a clearance rate of 82%. 806 sold at auction, 172 passed in and there were an additional 159 private sales.
Over the weekend, the Victorian Treasurer Tim Pallas announced that stamp duty on property and land taxes will rise effective from the 1st of July as part of the this week’s state budget.
The new changes will include an increase in stamp duty for purchases over $2,000,000 which will include the normal $110,000 payable upto $2,000,000 and then changing to 6.5% over $2,000,000. On a $3,000,000 purchase the stamp duty will now be $175,000 which is an increase of $10,000. Whilst a lot of money, probably not enough of an increase to stop buyers from purchasing at the higher end.
Land tax is also proposed to be increased by 0.25% for taxable land holdings from $1,800,000 to $3,000,000 and 0.30% for taxable land holdings above $3,000,000. If you have taxable land holdings (and this does not include your Principal Place of Residence) of $3,000,000, the current rate of land tax is $24,975 and the new proposed amount would be $27,975 which is an increase of $3,000 per year.
Whilst these increases are designed to target higher income earners, I don’t believe it will be enough to stop an owner occupier buying their ideal home but it may impact the amount of properties an investor purchases in Victoria. That being said, the majority of property investors only hold one or two investment properties at any one time.
Developers and investors owning properties that are rezoned are also being targeted with a 50% tax if the gain is over $500,0000.
Despite the freezing conditions, the weekend’s auctions were active and open for inspections were busy. Some even reporting lines up down the road, quite a feat considering the arctic blast Melbourne was experiencing.
1/3 Wilkins Avenue, Beaumaris – last sold for $552,500 in 2012 went under the hammer over the weekend with three bidders participating in the auction. The property was announced on the market at $1,050,0000 and sold for $1,115,000.
17 Capulet Street, Moonee Ponds was popular with families producing 4 bidders at the auction. The property was quoted $1,425,000 to $1,525,000 but sold well above this under the hammer for $1,705,000.
2/1163 Dandenong Road, Malvern East achieved a surprising result for a main road location. Villa units in quality suburbs are in high demand and this three bedroom, one bathroom property was no exception, 6 bidders in total property achieving a result 25% above the top of the quoted range of $1,093,000.
Have a great week.
Kim Easterbrook
Hi,
There was a Super Saturday in Melbourne over the weekend with 1,019 auctions reported producing a clearance rate of 81%. 623 properties sold under the hammer, 192 sold before auction and 195 passed in. There were an additional 204 private sales.
The Australia Bureau of Statistics released data showing new home loans surging to a record high in the month of March (an increase of 5.5% over the month). The data showed that investors had the largest increase (which is consistent with the new enquiry we are receiving in our office) but worryingly that first home buyer approvals have dropped.
Interestingly, what this does demonstrate is that there are still a lot of buyers wanting to enter the property market and have only just started the process. Price growth does seem likely for quite some time to come whilst interest rates remain low and confidence is high. However, the rate of price growth is stabilising which is not unexpected as an increase of 8.8% in one quarter is not sustainable. It seems the ‘fear of missing out’ is easing.
The auction of the property at 10 Hardinge Street, Beaumaris was competitive with seven bidders trying to secure this land site. The demand for houses in Beaumaris has increased dramatically due to the new Beaumaris Secondary College school zone. The deceased estate was quoted for $1,550,000 to $1,650,000 prior to auction with the knock down selling for $2,035,000.
1572 High Street, Glen Iris sold well above reserve with just the two bidders participating at the auction. A strong opening bid knocked out some potential purchasers but was challenged with the property selling for $3,001,000 which was more than $400,000 above the reserve price.
Have a great day.
Kim Easterbrook
Hi,
There were 970 auctions held over the weekend resulting in a clearance rate of 81% according to the REIV. 609 sold at auction, 179 sold before auction and there were an additional 210 private sales. The clearance rate for houses was 84% with a median price of $1,200,000 and apartments achieved a 76% clearance rate with a median price of $771,000. Interestingly, this time last year there were only 96 auctions held.
Many experts are expecting property price growth to continue this year and further beyond. This is all happening without population growth which is not expected to increase again for another two years. Our employment growth has been better than expected, coupled with low interest rates, strong consumer confidence and many people have actually been able to save quite a bit of money over the past twelve months, this has all contributed to an increase in demand.
It seems APRA and the Reserve Bank are more interested in financial market stability, promoting growth in economic activity and lending regulations than property prices at present, so it doesn’t appear that any intervention is on the cards in the immediate future.
The weekend auctions we attended were once again competitive with multiple bidders and all auctions selling under the hammer.
The auction of 1/7 Crawford Road, Cheltenham produced a higher than expected result. Entry level houses/units for good quality suburbs are currently in strong demand. This three bedroom, two bathroom, one of two home attracted three bidders at auction. The opening bid of $1,050,000 was quickly trumped by another bid of $1,200,000 where the property was announced on the market. Two bidders then went head to head where the property sold for $1,325,000.
17 Leroux Street, Oakleigh had a lot of interest with land sites with development potential continuing to be in strong demand. This property is on 702 sqm with a rentable, original house on it. The property was quoted $1,050,000 to $1,150,000 prior to auction. There was a large crowd in attendance and five bidders in total (with some not even having the opportunity to put their hand up). The property sold for $1,387,000.
Have a great day.
Kim Easterbrook
