As the Covid-19 second wave worsens in Melbourne, it doesn’t seem to have deterred many buyers from purchasing a property. Even though fearful, there is a “lets just get on with it” attitude across the city. We are all learning to live with this disease and we are becoming more accepting that this is the way of life at least for the next year or two.
The weekend produced a staggering 88% clearance rate on 211 auctions. To break this down, there were 104 sold at auction, 80 before auction, 1 sold after auction and an additional 339 private sales bringing the total number of sales for the week to 524. These numbers are not dissimilar to an average July week of sales in a normal market. In comparison last year there were 295 auctions with a clearance rate of 76%.
Lockdown life in the property market has now reverted back to how it was in March. Auctions are now back online, increase in private sales, inspections are via private appointment only. Reports from many selling agents have suggested very active private inspections on many of their properties.
Unfortunately, some businesses may not survive this second wave and people could lose their jobs. However vulnerable buyers exited the market in March and we do not anticipate this second wave will have much impact on demand.
Online auctions are now the new ‘norm’ with almost 100 people joining a Zoom auction of 30 Trinian Street, Prahran. The property was quoted at $1,850,000 to $1,950,000 prior to auction and sold for $2,300,000 which was $350,000 over the vendor’s reserve. Five bidders in total drove the price to this level.
Over the next month or so, we are expecting there to be drop in properties listed online for sale and a rise in off market activity to levels seen in March/April. We are also anticipating that prices will remain stable as purchases/sales will still need to happen.
Stay safe everyone.
Kim Easterbrook
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Over the weekend, the auction clearance rate increased to 72% which is an increase of 1% from last weekend and interestingly, an increase from 66% for the same time last year. For the first time since March, we can accurately compare the clearance rates to last year as the number of auctions were similar with 300 over the weekend to 339 this time last year. In addition there were 203 private sales.
Core Logic recently released its Monthly and Quarterly Melbourne Property Market reports which supports what we have been experiencing on the ground. Their reports suggest that property prices in Melbourne dropped 1.1% in June 2020 and overall fell 2.3% in the June 2020 quarter. These results are nowhere near the property price falls that many journalists and experts were predicting. We were expecting these quarterly results to show small drops in property prices which resulted from the initial shock of Covid-19 hitting our shores and the lockdowns we had in March and April. This data also confirms how resilient the Melbourne Property Market is as we face the biggest challenge our country has ever seen. Many forget that we all still need to supply the basic need of shelter.
What impact will Melbourne’s second wave have on property prices?
We have become a lot more knowledgeable and experienced in how to carry on business with COVID-19 from the first wave. Selling Agents will reimplement virtual tours again and online auctions are already set for areas in lockdown. There is no doubt some vendors will put their selling plans on hold so we are likely to see stock levels fall even further. On the flip side though it seems many buyers are just getting on with it as property prices remain stable. First home buyers have been active all the way through but now investors are gaining confidence, as too are upsizers and downsizers.
Have a great week.
Kim Easterbrook
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There were 443 property sales in Melbourne last week which is an increase on last week’s final sales numbers. The clearance rate was 65% on 415 auctions demonstrating we are in a balanced market. A balanced market is where housing prices are stable and there are an equal amount of buyers and sellers in the marketplace. That being said ‘on the ground’ we are experiencing a lack of quality properties. That being ones that ticks the boxes for a lot of buyers. An example of this could be a structurally renovated period home, in a quiet street, close to shops and cafes, in an inner city suburb.
Many people are asking us about the impact on the property market a spike in Covid-19 will have. In my opinion, it could result in us going back to how we were transacting in April and May. More online auctions, less people at open for inspections and so on. The industry adapted very well then and will easily be able to revert back should we need to. It also could result in a further decrease in stock on the market as sellers become afraid to have too many people come through their properties, or could again give rise to an increase in off market (quiet) listings.
We are also being asked on a daily basis as to whether we are seeing any distressed sales. In actual fact, we haven’t seen any properties selling at largely discounted prices. It could be reasonable to assume that if anybody was experiencing financial hardship, they would be recognising this now before loan repayments start again in September. These particular people would likely currently have their properties on the market to avoid having to sell their property under distress. Even if there was extreme urgency, the amount of buyers in the market are creating competition and therefore not allowing properties to sell cheap. On the flip side, we are very rarely seeing runaway results where a property is selling significantly above the reserve price. Properties are mostly selling within a 10% range of market value.
The sale of 137 Male Street, Brighton is a great example of where the market is at. The property sold at auction on the weekend with three bidders for $2,470,000. The property sold two years ago for $2,350,000 and previous to that it sold for $2,010,000 in 2015. As you can see consistent growth has been achieved over the past five years.
Have a great week.
Kim Easterbrook
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email admin@elitebuyeragents.com.au
* Offer applies to a referral that leads to the engagement of our services.
There were almost 400 property sales in Melbourne last week as property listings and auction numbers start to rise (although still low volumes compared to previous years).
Buyer confidence and low stock levels produced some strong auction results with many properties selling with competition from multiple bidders. 77 McCracken Street, Essendon sold with four bidders for $2,985,000, 6 bidders pushed the price of 24 Laura Street, Moonee Ponds $351,000 over reserve selling for $2,201,000. 21 Margarita Street, Hampton recently sold for a record price of $5,950,000. Just to name a few.
But what has really got me thinking as to where is this market at, is the sale of 12 Hammerdale Ave, St Kilda East. This renovated two bedroom, two bathroom renovated semi-detached house sold at auction on the weekend for a record price (for a two bedroom house in the suburb) of $1,690,000. We purchased 16 Hammerdale Ave, St Kilda East for an investor in August last year for $1,320,000. Number 16 was on slightly smaller land but structurally had a better floor plan and an extra bedroom. One could argue 16 Hammerdale is a superior property. This is $370,000 or 28% more in less than 12 months. A huge gain for our client.
So whilst we are seeing some properties selling very strong, there is still the odd opportunity that presents itself. Of the last three auctions that I have been a bidder, two of them passed-in to me enabling me to purchase them under what we expected them to sell for. Although the properties were well bought, there were still multiple buyers circling who were willing to make an offer had we not purchased them.
We may see stock levels reduce again as a result of the rise in Covid-19 cases however the Government have introduced restrictions quickly and hopefully this is just a little blip in the recovery stage.
Have a great week.
Kim Easterbrook
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
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For the first time in many months, there seems to be a feeling of normality in air. This included the Melbourne Real Estate Market which was very active with buyers inspecting properties, auctions with competitive bidding and just a feeling that we may have turned the corner.
Over the weekend I inspected many properties varying in prices from $600,000 to $6,000,000 in which all of the open for inspections were busy. Some of these opens even reached full capacity of 20 people which lead to people waiting outside and lines down the street. Even properties that had been on the market for quite some time achieved greater numbers than they previously had.
We don’t know yet whether this will lead to buyers having the confidence to bid as of yet, but in time, I am sure they will. After speaking to many selling agents, I found it very interesting to hear that many of these buyers are not returning buyers, but in fact many of them are new to the market. The first home buyer is extremely active with good quality apartments attracting huge numbers at open for inspections and strong bidding at auctions. I attended an auction on the weekend of a 1970’s two bedroom apartment in Richmond which had 14 registered bidders (photo above). Due to the Covid-19 restrictions, only 20 people in addition to the selling agents staff are allowed to attend. The auctioneer had to awkwardly ask all partners to leave and wait in the laneway at the rear. The auction took place in the car park to avoid any passersby stopping to watch and there were very strict social distancing measures in place.
The upper end of the market is also waking up with active bidding and busy open for inspections. 33 Mangarra Road, Canterbury sold for $4,120,000 which was $470,000 above its reserve price with three bidders fighting to secure the home. It is important to note that there are still some properties that are selling short of expectation which means there is a level of caution with some buyers.
Have a great week.
Kim Easterbrook
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email admin@elitebuyeragents.com.au
* Offer applies to a referral that leads to the engagement of our services.
In true Melbourne style, the first day of winter is a cold and wet day. Historically, this also results in a decline in the number of properties for sale and some buyers disappear and await for Spring to purchase.
We are hoping this year might be a little different as we are currently experiencing a shortage of quality properties due to the uncertainty the Covid-19 pandemic created. I would encourage vendors with high quality properties who are considering selling to put their properties on the market.
Over the weekend, there were a number of auction results that sold well in excess of the reserve price. 104 Middlesex Road, Surrey Hills is a two storey, four bedroom house volume built home sold for $2,491,000. 8/28 Power Street, Toorak sold for $656,000 with 7 bidders. 20 Alfred Street, Prahran sold for an undisclosed amount with 4 bidders. The list goes on.
As cafe’s and restaurants start to open today, it seems the easing of restrictions is also increasing confidence in the Melbourne property market. The number of auctions is now on the rise and the number of transactions last week was 347. However, this number is still well down on last year.
On another exciting note, we are officially opening our Geelong office today which will service Regional Victoria including Geelong, Ballarat and surrounds. Vicky Whittaker will be managing the team who is a resident of Geelong and a very experienced Buyer’s Agent. Looking after both Investors and Owner Occupiers, Geelong and Ballarat have fabulous capital growth prospects and offer higher rental yields that can be achieved in Melbourne. Please call the office on 03 9592 1122 to find out more.
Have a great week.
Kim Easterbrook
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email admin@elitebuyeragents.com.au
* Offer applies to a referral that leads to the engagement of our services.
Good morning,
Auctions are back, properties selling above quoted ranges, easing of restrictions will allow 20 people at an open for inspection and auction as of 1st June 2020, increased confidence and the rental market is rebounding. These are all what was experienced by my team over the weekend with signs that we are heading towards a more normal Melbourne property market.
The clearance rate over the weekend was 82% on a low volume of 109 auctions, so not a true reflection of the market. There was an increase in private sales this week to 218, a significant increase from last week. We are still at volumes below 50% of last year but over the next few months I am expecting this to increase.
The rental market has certainly taken a battering over the past 10 weeks. At the start of the Covid-19 pandemic in Australia, people were not wanting to move which caused an instant lack of demand in rental properties. In addition to that, some tenants were losing their jobs and there was a lot of uncertainty about pretty much everything. The government was also providing confusing messages about tenants and landlords rights.
As tenants starting losing their jobs, our property managers were inundated with requests of rent reductions and deferments and in turn started to panic some of our landlords. We quickly had to implement strict guidelines in order to fairly manage these requests and result in a fair outcome for all involved.
In order for a tenant to apply for rent reduction/deferment, we requested evidence of financial hardship. A tenant simply losing their job was not enough to qualify for a discount. A tenant must have also demonstrated they have an inability to pay their rent which also included proving a lack of cash savings. It was found after we requested a formal application that many still had the ability to pay their rent due to cash savings and eligibility for JobSeeker or JobKeeper payments.
This resulted far less rental reduction requests than we were expecting, with only 1 in 15 properties having to lessen their rent due to tenants financial hardship. Our rental departments’ vacancy rate did increase marginally through the peak of the pandemic to around 4% but this has now dropped back to around 2%.
Over the weekend, we saw great turnouts to our open for inspections for almost all of our properties and I have just been informed by my team that most of our ‘for lease’ properties have received tenant applications on them.
In summary, we have certainly seen a shift in the demand for rental properties over the past two weeks, and although there are more properties up for lease than usual, the days it is taking to lease them out is on the decline.
Have a wonderful week.
Kim Easterbrook
Smoke Alarms
As a landlord, you have the responsibility of ensuring that the smoke alarms at your rental property are in working order. All properties are required by law to have a fitted smoke alarm. We will take care of this for you! Once a year we arrange for smoke alarm services to be carried out, to ensure they are operating correctly.
Smoke alarms are a vital part of a property, it can save lives and reduce damage to a property. With this in mind, it is extremely important to have smoke alarms up to date and functional.
As your Property Managers, we organise this service for you and liaise with the tenants to ensure that it is checked annually. Rest assured that your property and your tenants are safe and have the early warning of a smoke alarm to rely on.
Rosie Lewis – Elite Property Rentals
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Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email admin@elitebuyeragents.com.au
* Offer applies to a referral that leads to the engagement of our services.
Good morning,
The State Government last week announced they will now allow on-site auctions and open for inspections of properties. This is the first step in resuming back into a normal property market. The restriction to this allowing only 10 people in the property in addition to staff required to facilitate the auction or inspection. The contact details of all attendees will also be recorded.
Auction numbers are well down and it appears most agents are sticking to the same schedule of conducting their current online auctions and private sales for properties that are currently listed. However, since the announcement, realestate.com.au reported 1500 new properties had been listed online in a rush of vendor activity with some on-site auctions being locked in. A welcome relief to the current low stock levels we have been facing.
The recent reports from banks of substantial price falls have certainly put fear into ‘some’ buyers. This fear is not dissimilar to the fear many buyers felt after a scathing 60 Minutes report 18 months ago predicting property price falls of in excess of 20%. Many buyers at this stage sat on their hands and waited for the market to improve before making the leap to buy. A move that costed many buyers hundreds of thousands of dollars as the market recovered quickly after the federal election and property prices increased at a rapid rate.
I was keen to hear feedback from selling agents across Melbourne over the weekend in relation to the numbers of buyers attending open for inspections on the weekend and by all accounts, there were many busy opens. Selling agent Sam Gamon reported 57 groups (mostly first home buyers) on Saturday through a two bedroom 1960’s apartment in Elwood. There is a flurry of first home buyers in the market hoping their money will be able to buy a little bit more than it would have at the start of the year. Some open homes were reported to be extremely busy and others were low on numbers. In some cases the usual 30 minute open times were having to be extended to allow for social distancing and restricted attendee requirements.
Whilst we head into the usual quieter months of winter, I believe we will see conditions similar to what we saw pre-Federal Election with entry level houses and good quality units/apartments selling well under competition but higher end properties and properties that have some compromises will be the ones that may have less buyers.
With many buyers sitting on their hands, the opportunistic buyers are jumping in viewing these conditions as temporary. With Covid-19 numbers remaining low and many people going back to work, we should in the months to come see an increase in activity and in turn we should have an active Spring season.
Have a great week.
Kim Easterbrook
Pets and Rental Properties
With the new legislation slowly coming into effect one change that is confirmed is the laws around permitting pets to renters. Pets assist in making a house feel like a home for many.
This legislation commenced on the 2nd March 2020, renters are required to have the landlord’s consent to bring a new pet into the property. The renter will need to provide a completed pet request form for each pet kept at the property.
The landlord must not unreasonably refuse this request however the landlord is able to apply to VCAT to deny the pet if they deem that the pet is unreasonable in the property. The landlord will have 14 days to make an application to VCAT.
If the renter has a pet prior to 2nd March 2020 they are not required to obtain consent.
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email admin@elitebuyeragents.com.au
* Offer applies to a referral that leads to the engagement of our services.
Good morning,
I hope everyone was able to have a lovely Mother’s Day. I certainly was able to enjoy my first Mother’s Day with my beautiful daughter.
The Melbourne Property Market remained active last week with 308 sales occurring. 239 of those were private sale and the remainder were either before or at auction (online). Well down on last year however still reasonable all things considered.
Over the past two weeks at Elite, we have experienced an increase in the amount of enquiry we have been receiving from new buyers. The numbers are a huge improvement in what we received in April. With restrictions easing across the country, it appears that some buyers who have been sitting on their hands are starting to come out of the woodwork.
Is now a good time to buy?
With less competition from buyers, we are not witnessing any runaway sales results like we were a couple of months ago. Whilst many properties are selling with competition from more than one other party, it seems buyers are not willing to pay the premiums they previously were. This is allowing some buyers the opportunity to secure the property they were not able to secure earlier this year.
Victorian’s are eagerly awaiting today’s announcements of what the plan will look like in lifting the Stage 3 Covid-19 restrictions. This will have some impact on how the Real Estate Industry will operate moving forward. We are expecting that auctions and public open for inspections to recommence in the not too distant future. The REIV are advocating that people attending auctions must have the COVIDSafe app on their phone and increasing inspections from one to five people.
Have a great week.
Kim Easterbrook
Rental Property of the week
FOR LEASE
7/5 Dickens Street, Elwood – $410 per week
What a top location in Elwood. This is a great apartment that boasts a desirable entertaining area! Features a contemporary kitchen with stainless steel appliances, plenty of cupboard space. Open plan living and dining area that flows out onto the spacious courtyard. Large bedroom with built-in-robes, spacious bathroom with laundry facilities, secure entrance and basement car park for one car. Privately situated at the rear of the complex. Fantastic location and only minutes to Acland Street, Elwood Village and the beach!
Please call the office on 03 9592 1122 if you are interested to view.
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email admin@elitebuyeragents.com.au
* Offer applies to a referral that leads to the engagement of our services.
Good morning,
I hope you had a lovely weekend.
With some light appearing at the end of the Covid-19 tunnel, it is a good time to reflect on how Covid-19 has impacted the residential real estate market from both a buying/selling and rental view. At Elite, April still proved to be a busy month (albeit volumes less than normal) securing for both our Investors and Owner Occupiers. The rentals team were busy conducting private inspections, filming virtual property tours and leasing out vacant properties.
Buying/Selling
The volume of transactions over the past six weeks has dropped by over 50% of what should normally be occurring. Most negotiations are now via private sale, expressions of interest and off market, with the occasional online auction happening.
Private treaty negotiations can be difficult when multiple parties are looking to secure the same property. We have been involved in many private sale negotiations over the past month which have had multiple interested parties. In most of these cases, the negotiation has turned into a ‘best offers’ negotiation and a deadline placed by the agent. These negotiations can be tricky when there is no information offered by the agent in regards to the other offers. In these instances, it is so important to understand the value of the property to avoid overpaying. But also, it is equally crucial to know the right questions to ask the agent to ensure the offer you has submitted is not tens of thousands above the other offers.
Whilst the amount of buyers in the market has decreased, so has the number of properties for sale and therefore the property market has remained balanced. CoreLogic reported that Melbourne property prices only fell by 0.3% in April which is consistent with what we have been witnessing on the ground.
Rental
The past six weeks has been challenging for many landlords and tenants. After the Victorian Government made their announcements three weeks ago, we were inundated with phone calls from tenants requesting rent reductions and payment deferrals. For a rent reduction to be considered, the tenant must show financial hardship. We have found that once evidence of hardship was requested, the amount of requests for reductions decreased considerably. In most instances, we have had landlords and tenants negotiate fair and reasonably outcomes.
Vacancy rates have increased and our team have had to be creative in order to incentivise tenants to apply. Rent free periods and slight rental reductions have been offered on many properties and the strategy appears to be working to attract interest and reduce the vacancy times.
Whilst the property market has been affected, it seems the industry has adapted quickly to overcome any challenges it has in order to still transact. Virtual tours and auctions are successfully taking place and private inspections are the new normal.
I hope you have a great week!
Kim Easterbrook
Rental Property of the week
FOR LEASE
98 Blessington Street, St Kilda – $995 per week
Step inside this stunning terrace house set over two levels and find yourself impressed with all it has to offer in the heart of St Kilda.
This stunning double story home with high ceilings offers a large open plan living area on the bottom level with heated concrete floors, a gorgeous exposed red brick wall, and a free standing gas wood fire place in the living area, all creating charm and warmth.
The kitchen has stone bench-tops, all the latest appliances and an abundance of storage and overlooks the dining and living space which opens with large bi-fold doors into a private, sun filled courtyard extending the living space and letting it all flow together so beautifully.
Upstairs are 2 full sized bedrooms both with built in robes and the master with a sun filled private balcony and the main bathroom with an oversized shower.
This sensational property can come fully furnished or unfurnished. The choice is yours.
Please call the office on 03 9592 1122 if you are interested to view.
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email admin@elitebuyeragents.com.au
* Offer applies to a referral that leads to the engagement of our services.
