Good morning,
I hope you had a lovely weekend.
The State Government’s economic rebuild plan is currently underway with strong rumours that they are considering revamping land transfer duty (stamp duty). The revamp is said to be abolishing the land transfer duty and implementing an annual land tax which is said to be a cheaper alternative.
The proposal states that the annual land tax will be calculated on a sliding scale based on the value of the land. The more expensive the land, the more tax to be paid. The purpose of decreasing the substantial upfront costs is to enable property to be more affordable. This would come at a huge cost as the current system draws in $6 billion of revenue each year. It will be interesting to see how this pans out over the coming weeks.
On another note, the REIV released the March 2020 quarter median house and unit prices last week with the Melbourne median house price increasing to $890,000 for the first time. This comes after two consecutive quarters of growth. The median unit (townhouse, units and apartments) price for Melbourne also reach a record high of $641,000.
It was great to wake up to some positive news that two states have plans to start easing Coronavirus restrictions and lets hope the new case numbers remain low and other states will start following suit in the not too distant future.
Keep warm this week, it’s going to be cold one.
Kim Easterbrook
Rental Property of the week
FOR LEASE
16 Osborne Street, South Yarra – $465 per week
In the heart of South Yarra, this semi-detached home consists of two bedrooms, main bedroom with BIR, open plan living & dining, generous kitchen, updated bathroom and a secluded courtyard at the rear. Premier location close to Chapel street’s bars & cafes, within metres of the Prahran Market for all of your fresh produce and an abundance of public transport options on your doorstep with trams on Toorak road and Commercial Road and only a short stroll to South Yarra station. This home represents great affordability for South Yarra.
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.
Australian property prices made the headlines in the media again over the weekend with reports that Melbourne property prices could drop by upto 10%. Once again, I find myself in a position having to contradict what I am reading in the papers.
As we know, it is predicted that the unemployment rate will reach 10% in the coming months. Whilst terrible for those who have lost their jobs, this is only temporary. The Government have done an amazing job helping small businesses get through these tough times by keeping many in jobs, maybe not earning what they usually would be earning, but enough to survive.
Australia is flattening the curve ahead of schedule and there are signs that we will be heading into a recovery sooner than originally expected. The rate of new cases has now stayed below one per cent for seven days in a row. These reports have given the public a renewed confidence as we have accepted that Stage 3 restrictions are now just a way of life for the time being.
So how is the Melbourne property market faring?
On the ground, we are not witnessing any significant price drops or distressed sales. In fact, property prices are remaining stable with maybe a slight discount on some properties. There are no doubt less buyers in the market, but on the flip side, there are also less sellers. Good quality properties are still selling well and should continue to do so. We secured three properties last week, but also missed out on three more due to being outbid by other buyers. There is genuine activity but we are not seeing any runaway results like we saw a few months ago.
While stock levels remain low, property prices should remain stable or at worst, a very slight decrease in price. The record low interest rates have made it easier for people to keep their properties without feeling too much pressure to sell.
The increased unemployment rate should only be temporary and once businesses start reopening, that rate will decline. Whilst money is cheap, those employed buyers who are currently sitting on their hands, will in time be back looking to buy. And for those buyers who are in the market, they are enjoying conditions of less buyer competition and more off market properties.
Have a great week!
Kim Easterbrook
Rental Property of the week
FOR LEASE
16 Osborne Street, South Yarra – $465 per week
In the heart of South Yarra, this semi-detached home consists of two bedrooms, main bedroom with BIR, open plan living & dining, generous kitchen, updated bathroom and a secluded courtyard at the rear. Premier location close to Chapel street’s bars & cafes, within metres of the Prahran Market for all of your fresh produce and an abundance of public transport options on your doorstep with trams on Toorak road and Commercial Road and only a short stroll to South Yarra station. This home represents great affordability for South Yarra.
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 long weekend and enjoyed the beautiful sunshine yesterday.
The real estate industry had a very eventful weekend after Consumer Affairs Victoria announced on Thursday afternoon, via their website, that private inspections of tenanted and occupied properties was now banned. This effectively shut down the real estate industry. This was a disastrous outcome for many vendors, landlords, prospective tenants, building inspectors, valuers, tradespeople and people who worked in the industry. This all left us scratching our heads as to why someone could go to the hairdresser, Bunnings or Kmart but couldn’t inspect a property that was occupied or tenanted.
After a lot of confusion over the Easter weekend, common sense prevailed and yesterday, Consumer Affairs Victoria reversed their decision ALLOWING occupied or tenanted properties to be inspected. If a property is currently occupied or tenanted, no more than two people are allowed in the property at any one time. The person(s) who reside in the property must leave during the inspection but are only allowed to leave for a legitimate reason (being one of the four essential activities that are currently allowed).
So it is business back as usual for buying, selling and leasing.
Have a wonderful week!
Kim Easterbrook
Rental Property of the week
FOR LEASE
16/38 Mitford Street, Elwood – $390 per week
Spacious top floor apartment with leafy outlooks reflect the period character of this beautiful two bedroom apartment. Featuring polished floorboards throughout, one bedroom features large built in robes and both rooms share a bright modern main bathroom with shower over bath that completes ideal proportions.
A central living/dining area featuring hydronic heating and is complemented by a separate kitchen with dishwasher and washing machine. Surrounded by the best of both Elwood and St Kilda – it is a superb location.l.
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 afternoon,
Due to the current low volumes of auctions, the clearance rate is not a true reflection of the property market sentiment and therefore I will not be including clearance rate information in my market updates whilst the Covid-19 issues are affecting the property market.
The REIV has reported that last week there were 126 properties that sold before auction, 32 at auction and 144 private sales bring the weekly total to 302 sales. These numbers are significantly lower of what would have likely occurred (by more than 50%) had there been no Covid-19 impact.
Residential and commercial tenancies have been a hot topic over the past few weeks with little clarity and guidance being provided by the government until last week. For commercial leases, the Federal Government is working on a “give and take” tenancy code in which companies with an annual turnover of less than $50 million that have experienced at least a 30 per cent drop in revenue will qualify under this new legislation. Scott Morrison stated a few days ago that the turnover reduction of the tenant needs to be reflected in the rental waiver from the landlord.
The management of residential tenancies is very different. The majority of 2.5 million residential landlords in Australia are ordinary Australians in which the majority have mortgages and expensive outgoings. These landlords have also been impacted by the financial impact of Covid-19 with job losses and suffering businesses. Banks have offered deferred interest repayments on loans but this only provides temporary cashflow relief and the loan still needs to be paid, just at a later date.
Tenants (who are Australian residents) who have lost their job due to Covid-19 have access to NewStart and JobSeeker packages which should be used to pay for their rent. Landlords may (and have been) asked to consider rental payment plans or reductions during this time. There has been a ban on evictions for six months so a tenant may choose not to pay rent and the landlord will be unable to have the tenant removed from the property until after the ban is lifted. Any claim for ‘loss of rent’ cannot be made until the eviction ban has ceased and the tenant has been evicted. If a tenant wishes to end a fixed term lease due to severe financial hardship, then they can apply to VCAT to do so. The Victorian Government hasn’t released any details of a rental assistance package for tenants at this stage unlike some other states, however this could change in the near future.
On a positive note, it is great to see some very early signs that the Covid-19 curve is flattening. Let’s hope the public continue to do the right thing and practice social distancing practices.
Have a wonderful week!
Kim Easterbrook
Rental Property of the week
FOR LEASE
1/6 Elm Street, Hawthorn – $430 per week
One of only twelve in the well maintained ‘TRIANA RISE’ building this stylishly updated apartment is blessed with a perfect north aspect and complemented by a private and secure landscaped courtyard. Generous light filled living opens to the outdoor retreat via French doors while a renovated Kitchen with separate meals area feature appealing proportions, sparkling presentation and modern stainless steel appliances. A beautifully bright bedroom with built in robe looks out to the courtyard garden with reverse cycle heating/cooling, pristine ensuite bathroom and laundry. Conveniently located in a prized riverside precinct walking distance to Barkers Road trams, schools, parkland and the best of Hawthorn and Richmond services. Off street parking seals the deal.
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 afternoon,
To say the least, I was quite shocked when I saw the REIV auction clearance rate on Saturday night sitting at 90%. But after investigating this further, this is not an accurate snapshot of the current market. The 28th of March was meant to be a Super Saturday auction day with well over 1,300 properties going under the hammer. In the end, it was reported that there were only 363 auctions with many selling before hand. It must be noted that 998 auctions were withdrawn due to the vendor withdrawing their property from market or converting the auction to a private sale campaign.
Overall, there were still 425 properties that sold last week which is half of what would have likely occurred had there been no Covid-19. That being said, with the level of uncertainty we are currently facing, I feel this still demonstrates that we are in an active market with both buyers and sellers willing to transact.
Selling agents are adapting new ways to enable transactions to still occur. Many agents are uploading virtual tours of their properties to enable the buyer to get a better snapshot of the property prior to inspecting privately. Auctions are now being conducted online which is proving to be successful where other transactions are happening via private sale treaty or in an off market capacity.
Rental agents (including ourselves) are also adapting to the forever changing space we are working within. Inspections are being conducted in a private capacity with virtual tours of properties are being loaded onto website portals. Our agents are also pre-qualifying tenants prior to walking through properties to ensure they have capacity to pay rent even in the unfortunate event they may lose their job.
Although the current market has its challenges, it is fantastic to see how the industry is adapting and many of these changes will likely prove to be beneficial in the way the industry transacts in the future.
Stay safe and have a great week.
Kim Easterbrook
CLEARANCE RATES
MELBOURNE | March 29, 2020
This week: 363 Auctions | Clearance: 90% | Last Year: 55% [source: REIV]
Elite Buyer Success
66 Gamon Street, Seddon – BOUGHT $1,000,000
We were engaged by an investor to find a long term investment that would achieve good capital growth and rent out easily with high quality professional tenants. Being an interstate buyer, it was also important that this property was low maintenance and in very good condition to allow a ‘headache’ free investment.
We targeted 66 Gamon St, Seddon which is a fully renovated two bedroom, one bathroom period home in the very popular and trendy suburb of Seddon. The buyer and rental demand for this type of property is very strong, and hence the reason why we targeted it for our investor client.
The Elite team inspected the property at the first open for inspection where we were adamantly told that the property had to go to auction on the 4th of April. With the current environment changing daily, this enabled us to execute a strategy which allowed us to take advantage of the current market conditions.
We put forward an offer and over a period of 24 hours of negotiating, we were able to buy the property prior to auction for a price that we would never have been able to secure in a seller’s market.
Rental Property of the week
FOR LEASE
202/173 Barkly Street, St Kilda – $470
This fully furnished, one bedroom apartment in central St Kilda is an amazing offering for a low maintenance lifestyle. Located on the first floor this bright, open plan one bedroom apartment offers super smart contemporary spaces in a brilliant inner city position. Its superbly spacious dimensions boast an uninterrupted easterly focus ensuring sun filled mornings and bright blue sky afternoons. A peaceful, private bedroom with built in robes is accompanied by generous open plan living/dining areas that feature a stainless steel kitchen ideal for entertaining. An immaculate bathroom, European laundry, reverse cycle heating/cooling, intercom security and basement parking sweeten the deal just moments from the CBD, Chapel and Carlisle Streets, Windsor Station and St Kilda 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.
Elite’s Weekly Market Wrap
Good afternoon,
With measures around the world to control the spread of Covid-19 changing with what feels like every hour, it is no wonder some property buyers and sellers are feeling quite nervous. This nervousness resulted in a clearance rate drop to 66% over the weekend. But instead of focusing on the clearance rate, it is important to drill down a bit more and understand the volume of transactions. It was a weekend with many auctions scheduled and resulted in a solid 779 properties sell before auction and at auction over the weekend.
Our purchase success last week was mixed… we secured multiple great properties for our clients being before auction and at auction. We did on the other hand miss out on more than we bought due to high buyer competition.
There are two types of buyers in the current market. The nervous ones that are going to sit on their hands and wait to see what happens. And the opportunistic buyer who are willing to transact and hopefully take advantage of the market with less competition. We will see many more off market transactions over the next few months for a couple of reasons. Vendors are worried about investing thousands of dollars into advertising when a looming shut down is on the horizon and some vendors are trying to avoid having too many buyers treading through their properties from a health and safety perspective.
So what does that mean for buyers? Over the next few months we may see some very motivated vendors. They may have already purchased another property and need to sell. Some may need to sell because of financial reasons due to job loss. We will see more off market transactions and many properties selling prior to auction. There may be an opportunity to secure A Grade properties with less competition.
I feel very confident that if we are to see any downturn in prices, that it will be short term and the property market will bounce back quickly once the dust settles. There are too many first home buyers, downsizers, upsizers and investors still wanting to take the leap, especially with interest rates at record lows.
Stay safe and have a great week.
Kim Easterbrook
Clearance Rates
Melbourne | 23 March 2020
This week: 932 Auctions | Clearance: 66% | Last Year: 58% [source: REIV]
Auction of the week
92 Page Street, Albert Park
A large crowd gathered to watch the auction of 92 Page Street, Albert Park. A rare offering of a house on 600 square metres of land and a tower with a lookout.
Bidding started at $7 million and was a bit slow to start until it reached its reserve of $8 million. Five bidders ended up putting their hands up to try and secure this amazing piece of real estate with the property selling for $1.01 million above reserve for $9.01 million.
It just goes to show that quality properties sell well in almost any market condition.
Rental Property of the week
For Lease
23 Fairview Avenue, Camberwell – $1,090
Sitting pretty in a leafy tree-lined street, this warm and welcoming Californian Bungalow reveals a series of updated and extended spaces ideally matched to modern family needs whilst preserving its stunning, original period features of timber floors and ornate high ceilings. Four bedrooms, all with built-in robes, a separate study and family bathroom provide ample accommodation and complement an elegant formal lounge and dining room, through to a separate family domain incorporating a contemporary kitchen with ample storage space and dishwasher and full width living/dining area opening out to a sunny north facing timber deck and in-ground, solar heated swimming pool as well as a fabulous in ground trampoline to keep the kids entertained for hours. This beautiful home is complete with every modern day comfort including ducted heating and cooling, split system cooling, single carport and additional off street parking. Enviably located minutes to elite independent schools, local shops and various transport options. Pool maintained/serviced professionally between April – September and monthly garden maintenance included. 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.
Elite’s Weekly Market Wrap
Good morning,
It seems that events are worsening daily as the amount of Covid-19 cases increases around the world. Governments are taking drastic measures to slow the spread of the virus as the World Health Organisation declared novel coronavirus a pandemic.
It’s for good reason people are concerned as we enter into a territory that we have never seen before. More and more people will be working from home, schools and child care centres may shut down in the weeks to come, international travellers now have to self quarantine for 14 days from arrival, events with over 500 people have been cancelled, and there will be more things to come.
So, what does this mean for Melbourne’s property market?
Surprisingly, the weekend brought people out in droves at auctions and open for inspections. The clearance rate did fall to 72% from a consistent 80% which was expected due to the negative news on Friday. For the time being, it is business as usual but we may see supply start to drop off quickly as many vendors are likely to hold off from selling and with interest rates so low, may even resort to just leasing their properties out. Another interest rate cut is also on the horizon which potentially could push prices even further.
We are likely to see a lot more off market transactions with vendors not committing to expensive marketing campaigns and potentially wanting to limit the amount of people going through their properties.
We may see a period of time where the industry comes to a grinding halt. We are all hopeful with strict measures that are presenting themselves daily, that this will pass and pass quickly as possible.
Keep well everyone and have a great week!
Kim Easterbrook
Clearance Rates
Melbourne | 16 March 2020
This week: 869 Auctions | Clearance: 72% | Last Year: 57% [source: REIV]
Auction of the week
25A Salisbury Street, Moonee Ponds
In an ideal location within Moonee Ponds, this 6 year old townhouse attracted multiple bidders, even with the covid-19 uncertainty. An opening bid of $1.5m was on the mark, however, another 5 bidders wanted their day in the sun, and all fought it out until the hammer came down at a healthy $1.735m. The property sold approximately $200,000 over the reserve price.
The bidders consisted of young professional couples, young families as well as a couple of buyers’ advocates.
Rental Property of the week
For Lease
5/25 York Street, St Kilda West – $470
Located in the sought after area of St Kilda West this inviting two bedroom property comprises a central living/dining area, two double bedrooms with built-in robes, contemporary kitchen featuring stone benches, stainless steel appliances and pull out dish-washer and a fully tiled, stylishly appointed bathroom. Also with under-cover balcony and allocated car parking. The apartment will be freshly painted throughout.
Just a short stroll away from public transport, shops and restaurants. Be in quick before you miss out on this gem.
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.
Elite’s Weekly Market Wrap
Good morning,
The weekend was the first test of the Melbourne property market with almost 1,000 properties going under the hammer. The clearance rate remained steady at 80% which is indicating we could be in a seller’s market (usually the case when the clearance rate is over 80%). A few more weeks of auctions is needed to fully gauge whether this is the case. On the ground though, properties are selling where we believe they should be based on recent comparable sales (generally speaking). This is demonstrating that we are currently experiencing steady growth, rather than a sharp rise in property prices which historically is unsustainable.
According to the ABS, loans to investors have increased by 22% since the election in May with Melbourne being the preferred city for investors to invest in. Banks are also fighting to attract these investors by slashing interest rates as they battle to gain market share. This is a huge turnaround from twelve months ago when the Royal Commission and uncertainty in the market put many investors on hold.
A big congratulations to all our clients who purchased this week. We had a real mix of successful buyers ranging from investors, first home buyers and upsizers securing properties before auction, at auction, after auction and off-market.
Have a great week.
Kim Easterbrook and the team at Elite.
Clearance Rates
Melbourne | 1 March 2020
This week: 1160Auctions | Clearance: 79% | Last Year: 57% [source: REIV]
Auction of the week
1/158 Victoria Road, Hawthorn East
A large crowd turned up to see this ground floor 2 bedroom apartment with street frontage go to auction. The reserve of $595,000 was smashed by an opening bid of $630,000 in which the property was immediately announced on the market. Five bidders in total drove the price to $719,000. We are predicting that good quality, low rise apartments will start to see some solid capital growth now as entry level properties for high quality suburbs are becoming more and more in demand from investors and first home buyers.
New lawks making it easier for tenants to have pets
As of today, the anticipated new pet laws will come into effect. What does this mean for you as a landlord? Basically renters can keep pets in a rental property with written permission from the rental provider (landlord). Permission can only be refused with approval and an order made from the Victorian Civil and Administrative Tribunal (VCAT). The new laws do not apply to rental properties that already have pets. If a renter has a pet before today in the rental property, there is no need to seek the written consent of the rental provider again.
However, if the renter wants to bring a new pet into the property, they must request the rental provider’s consent in writing. They must use the Consumer Affairs Victoria pet request form. Renters can do this by email if both parties have agreed to communicate in this way.
The new laws make it imperative to have landlord insurance with pet damage cover. We recommended that each owner check and update the insurance policy at their earliest convenience. For more information, including the pet request form, is available on Consumer Affair Victoria’s webpage.
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.
Elite’s Weekly Market Wrap
Good morning,
The weekend was the first test of the Melbourne property market with almost 1,000 properties going under the hammer. The clearance rate remained steady at 80% which is indicating we could be in a seller’s market (usually the case when the clearance rate is over 80%). A few more weeks of auctions is needed to fully gauge whether this is the case. On the ground though, properties are selling where we believe they should be based on recent comparable sales (generally speaking). This is demonstrating that we are currently experiencing steady growth, rather than a sharp rise in property prices which historically is unsustainable.
According to the ABS, loans to investors have increased by 22% since the election in May with Melbourne being the preferred city for investors to invest in. Banks are also fighting to attract these investors by slashing interest rates as they battle to gain market share. This is a huge turnaround from twelve months ago when the Royal Commission and uncertainty in the market put many investors on hold.
A big congratulations to all our clients who purchased this week. We had a real mix of successful buyers ranging from investors, first home buyers and upsizers securing properties before auction, at auction, after auction and off-market.
Have a great week.
Kim Easterbrook and the team at Elite.
Clearance Rates
Melbourne | 24 February 2020
This week: 957 Auctions | Clearance: 80% | Last Year: 53% [source: REIV]
Auction of the week
60 Evans Street, Port Melbourne
This single fronted home was highly sought after by three owner occupiers at auction. The property had been structurally renovated but was very dated. The agent accurately quoted the property prior to auction at $1,800,000 to $1,900,000 where we felt was exactly what the property was worth (upper end of range). The property sold at auction for a huge amount of $2,210,000 which was $310,000 over the reserve price.
Rental of the week
FOR LEASE
3/11 Pilley Street, St Kilda East
$560 per week
This Art Deco apartment has so many great features that it will sure to lease quickly. The well located apartment has two good sized bedrooms, is renovated, located within a VERY small block and has a large courtyard/backyard. A rare find. If you would like to arrange a time to view, please call our office on 9592 1122.
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.
Elite’s Weekly Market Wrap
Good morning,
Firstly, a big congratulations to our three clients who were successful purchasing properties at auction on the weekend. Two being owner-occupier purchases and one for an investor.
The cooler weather has been a welcome relief for many but the rain didn’t deter people attending auctions over the weekend. The clearance rate remained at similar levels this week reaching 82%. Volume numbers are still low (but more than the last weeks) however we should see auction numbers increase significantly over the next four weeks.
Melbourne’s median price has jumped to $901,951 although it is still lagging behind Sydney by a considerable amount. Sydney’s median price has hit $1,142,212 exceeding the peak in 2017 leaving Melbourne behind by a staggering 26%. But what does this mean for Melbourne’s property prices? Sydney is fast becoming too expensive for many buyers and Melbourne is being viewed as an good option to invest in. We are also experiencing a trend in Sydney residents making the move to Melbourne as they cannot afford to buy a property in Sydney. With Melbourne’s population tipped to exceed Sydney’s in the next ten years, it is likely that Melbourne’s median price could very well get to similar levels that Sydney has and very possibly exceed it.
Enjoy your week!
Kim Easterbrook and the team at Elite.
Clearance Rates
Melbourne | 17 February 2020
This week: 494 Auctions | Clearance: 82% | Last Year: 60% [source: REIV]
Purchase of the week
5/29 Shoobra Road, Elsternwick
This property was targeted by our team for a client who was looking to purchase a long term investment in Melbourne. The brief was to source a property that has good capital growth but also can easily find quality tenants. Villa units can make excellent investments because developers are not building them anymore so the supply of them is low. They are highly sought predominately by first home buyers, downsizes and investors. Elsternwick is a premium suburb of Melbourne where many wish to live. In addition to this, the unit was very well located close to the train station and trams, and the ever-changing Glenhuntly Road.
This demand was demonstrated when 265 buyers inspected this property throughout the auction campaign. The 100 strong crowd included many buyers who were wanting to secure this property. An aggressive bidding strategy had to be displayed at the auction which was successful with Elite being able to secure the property for $855,000.
Rental of the week
FOR LEASE
4/62 Moonya Road, Carnegie
$470 per week
Not only do villa units have strong demand from a buying perspective, they are also in demand from tenants. This is because they have the feeling of living in a small house, without the maintenance and upkeep and are at a lower price point.
These low maintenance properties attract professional couples with one or no children, single people of all ages and tenants looking to share a property. This property is currently up for lease by the Elite team and will be sure not to last long.
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.
