A clearance rate of 79 per cent was recorded this weekend, which is up 4 per cent from last weekend. This week has seen the highest amount of auction activity so far this year, with 1275 properties going under the hammer for the first “Super-Saturday”. From those auctions 1002 properties sold and 273 were passed in, 141 of those on a vendor bid. In addition to the auctions there were also 563 private sales reported.

With such a high volume of homes being put up for auction, the surprisingly high clearance rate has certainly shown the strength of the market right now. We have seen depth in the number of bidders, particularly in Grade A properties, and some fierce tactics being utilised to try and scare off the competition.

High end properties have also seen a boost in stock levels, with the highest number of $2 million to $6 million homes available since November 2014. We are now in a period when the share market has lifted, and this has increased the level of buyers seeking $2 million-plus properties to the proportions normally experienced amongst the hotly contested $1 million to $2 million bracket.

It could be more good news for home owners, if the Reserve Bank decides to cut interest rates again in the coming weeks, investors will be able to take advantage of the lower borrowing costs and higher share prices, and add to their property portfolios.

Only 260 auctions are expected next weekend in Melbourne, due to the Labour Day holiday weekend.

Auction Results

5/9-15 Palmer Street, East Melbourne. Sold for $760,000

One of only twelve in THE HERMITAGE, a building with significant period character, exceptional size and north facing views, this unrenovated one bedroom apartment attracted a big crowd of 70 at the auction on Saturday. East Melbourne is in very high demand due to its consistent architecture and close proximity to the city. The bidding opened up at a conservative $500,000 when another bidder jumped $50,000 to $550,000 immediately. Six bidders fought it out to buy this unique piece of real estate. The property sold under the hammer for $760,000, well above the reserve.

6/18 Downshire Road, Elsternwick. Sold for $730,000

A sensational location in one of Elsternwick’s premier streets, this renovated villa unit was in high demand from first home buyers, downsizers and investors. Set quietly at the rear of a boutique group of only 6, the auction was attended by a crowd in excess of 70 people. A strong opening bid of $666,000 was delivered to intimidate other buyers, and from there only two other bidders participated, with many other bidders not having the opportunity to bid. The property was announced on the market at $700,000 and sold for $730,000.

10 Bowler Street, Hawthorn East. Sold for $1,100,000

Last sold in 2009 for $690,000 this renovated single-fronted semi-detached Victorian home now fetched an asking price of $900,000. The demand for two bedroom cottages in inner-ring locations was reinforced when 90 onlookers attended the auction, and 5 bidders took part. Bidding began at $800,000 and at one point an offer of $1 million was made by two parties simultaneously, then one of those parties immediately upped the ante by $10,000. The property was declared “selling” at $1.02 million after passing the reserve of $950,000, and sold for $1.1 million.

For the first major auction weekend of the year, there was a substantial lift in auction numbers with 852 properties going under the hammer, resulting in a clearance rate of 76 per cent. From those auctions 651 properties sold and 201 were passed in, 95 of those on a vendor bid. In addition to the auctions there were also 408 private sales reported.

The Reserve Bank’s interest rate cut last week has increased confidence in the property market, and their was some heated competition from buyers keen to purchase property in superior streets.

There has also been a noticeable trend towards purchasers seeking out well-located properties on sizeable blocks, with the intention of knocking down and rebuilding. In the past year, the Australian Bureau of Statistics has reported a spike in approvals for new homes being constructed in established suburbs.

While the market is still just warming up and providing results similar to the end of last year, auction numbers increase to over 1,200 next Saturday. The increased stock levels in the coming weeks will be a good test to the strength of the market for 2015.

 Auction Results

1/10 Rushall Street, Fairfield. Sold for $1,265,000

This impressive three bedroom townhouse with street frontage is one of only four in a quiet, leafy street. An audience of nearly 40 attended the Saturday auction of the 5 year old home. The opening bid of $950,000 was contended with by two other bidders to $1,150,000 when it was declared on the market. A fourth bidder took up the challenge to $1,260,000 then the initial bidder pulled away in bids of $1000 to purchase the property for $1,265,000 to loud and welcoming applause from his new community.

12 Gowar Avenue, Camberwell. Sold for $2,765,000

Oozing family appeal, this four bedroom with a pool, located in one of Camberwell’s most desired pockets attracted a considerable crowd of 100 onlookers to the auction. The auctioneer described the cleverly designed alfresco appeal before accepting a $2 million offer. It wasn’t until the bids reached $2.51 million that the property was on the market, prompting four contenders to tackle and outbid the first bidder. It eventually sold for $2,765,000, which was an impressive price jump from the $1.8 million it sold for in 2008.

23 Woodbine Grove, Chelsea. Sold for $917,500

A big crowd gathered to watch the auction of this large development site in one of Chelsea’s best streets.  Quoted at $700,000 plus, the auction opened at $820,000 which was strong and determined by one buyer. Three other bidders joined in to try and buy this classic two bedroom home with plenty of land to extend or redevelop. The property was announced on the market at $915,000 and sold for $917,500.

Melbourne’s auction market has received a warm welcome back for 2015. There were 458 auctions reported this weekend, with a clearance rate of 74 per cent. From those auctions 338 properties sold and 120 were passed in, 61 of those on a vendor bid. In addition to the auctions there were also 358 private sales reported.

Auction numbers are on the increase again, as is the clearance rate which saw a nine per cent jump since last weekend. But were those lower clearance rates recently recorded due to lower housing stock, or could it be a trend?

The ABS released figures last week describing residential price growth slowing, with Melbourne’s established house prices only growing by 1.1 per cent duing the December quarter.

The recent interest rate cut, and predictions of another rate cut being on the cards for the coming months may mean that property prices will be on the rise again. The lower interest rate environment mixed with the current volatility of the Australian share market means that returns on investments are at an all-time low. Investors are beginning to see property as a safe alternative, particularly for their SMSF.

The current stock levels available in Melbourne are tracking lower than the same time last year by 25 per cent. We believe this to mean there will be some heated competition for good quality properties. Some of our team attended very hotly contested auctions this weekend, and we are expecting more of this in the early parts of the year.

Auction Results

1/8 Duff St, Sandringham. Sold for $715,000

This villa unit, in urgent need of renovation was highly contested. Originally quoted at $500,000 to $540,000, it was announced on the market at $570,000, which we felt was very realistic for a property like this. Part of a small unit development, the property boasted street frontage and its own driveway which would appeal to many buyers.

Six bidders fought to secure this property and to our surprise it sold well in excess of any comparable sales in the area. Three bidders were still in the race at $700,000 but all down to their final $1,000’s when the property sold for $715,000 to the disappointment of many buyers in the crowd.

6 Kyarra Ave, Hampton. Sold for $1,640,000

Terrifically positioned close to Hampton Street and Sandringham shops, this lovely Californian Bungalow in walking distance to the beach was highly sought after, with a quoted price of $1.3M to $1.45M. The auctioneer, Sam Paynter did a great job of entertaining the crowd whilst attracting bidding from 6 parties. 
The opening bid was $1.25M from a very determined buyer who was bidding strongly for the entire 30 minute auction. Bids were coming in from all over the street until a gentleman jumped in when all thought it was over to snatch the property away from the original bidder, who no doubt thought the home would be his. The property sold for $1.64M, well in excess of the reserve price.

18 Street St, Footscray. Sold for $712,000

A charming family Edwardian, stylishly renovated attracted a crowd of 100+ hipsters for the auction of this three bedroom house. A guide price of $540,000 plus brought out the buyers, and the auctioneer received an opening bid of $520,000 which was quickly crushed by a bid of $610,000. A third couple pushed the price to $635,000 to which the auctioneer announced the property on the market. Rapid-fire bidding began when a fourth party began outbidding another couple for approximately five minutes, and 16 bids. The final winning bid was delivered by the last party who secured it for $712,000.

The penultimate auction weekend for 2014 saw high volumes of properties going under the hammer. There were 1,266 auctions reported, with a clearance rate of 70 per cent. 881 properties sold at auction with 385 being passed in, 192 of those on a vendor bid. In addition to the auctions, there were also 486 private sales were reported.

The year is winding up with a bang as more than 1300 properties were on offer on Saturday. Some properties were even discounted in B-grade locations, presenting excellent buying prospects. Discounting of properties sometimes occurs at this time of year as vendors feel the pressure to sell before Christmas. Conditions like these where vendors require a quick sale is great news for buyers keen to snag a deal.

While clearance rates have been trending down since early November, there has still been a lot of movement in the property market. Many have taken advantage of the low interest rates to either get further ahead with their mortgage repayments, or upgrade.

What are your predictions for the 2015 property market in Melbourne? We’re expecting a strong start to the year, particularly in the inner suburbs. The talk of interest rates being lowered could have an effect of encouraging more buyers to pursue property, which will make it an interesting year! Next weekend is the final auction weekend for 2014, with 462 auctions scheduled.

Arriving at the final month of 2014 and buyers have been very active, with plenty of choice still remaining. 1,347 auctions were reported this weekend with a clearance rate of 69 per cent. From those auctions 926 properties sold and 421 were passed in, 192 of those on a vendor bid. In addition to the auctions, there were also 468 private sales reported, which is the most we’ve seen in a while.

Recent reports about the Melbourne market having a dip in values may be driving more buyers out of the woodwork, hoping to snap up a bargain. Of the auctions we attended on the weekend, there was undoubtedly some competitive bidding going on from multiple interested parties. The inner ring around the CBD, within 10 kilometres of the city remains highly sought after, benefitting from the most advantaged infrastructre such as transport links and lifestyle. This may be a pre-Christmas property rush, or it might just be the perfect time to buy.

The REIV have reported that the Spring auction market had two record weekends in the past five weeks, resulting in the strongest Spring that Melbourne has seen in terms of volume. Property in Melbourne has shown healthy growth this year, for the year to date, house values have risen by 6.5 per cent, and units by 1.6 per cent (source: RP Data Core Logic). Coupled with a slightly higher number of transactions that last year, the market could be described as moderate, not booming.

The year continues on with another large number of auctions expected next weekend – at 1,299.

The State election being held on Saturday did not deter buyers, in fact it meant that there were more people attending auctions in their local area. 1,213 auctions were reported this weekend with a clearance rate of 66 per cent. From those auctions 805 properties sold and 408 were passed in, 209 of those on a vendor bid. In addition to the auctions, there were also 391 private sales reported.

The suburbs with the most auctions held this weekend were Richmond, Port Melbourne, Reservoir, Doncaster East and St Kilda, where the election did not seem to scare vendors off. November has seen a massive increase in the number of auctions held in Melbourne and it’s been reported by CoreLogic RP Data that Melbourne is on track to have 87,000 residential property transactions this year. That figure is 3,600 more than 2013, but still shy of the 2009 record of 97,800.

The weekend market showed signs of confidence as both buyers and sellers were pushing for sales before Christmas. Such a lifestyle deadline is a clear motivator as most buyers are hoping to move in to their new property before the school year begins in February, whilst sellers are hoping to capitalise on this fact.

With plenty of housing stock on offer, buyers have been able to gain the upper hand in the Spring auction market. This weekend, there were 1,193 auctions reported, and a clearance rate of 69 per cent. From those auctions, 821 sold, and 372 were passed in, 202 of those on a vendor bid. In addition to the auctions, there were also 356 private sales reported.

It’s been a huge year for Melbourne auctions up to November. The REIV have recorded a 17 per cent jump in the total number of auctions held in the year to date, compared to last year. Furthermore, three suburbs top the list of numbers of homes sold this year for more than $2 million – Brighton, Toorak and Kew each had over 100 sales in this price category. Some impressive results!

With 1,193 properties auctioned on Saturday, there were plenty of opportunities for buyers to secure homes at good prices. The pressure on vendors having to sell their properties before the Christmas season, which sees the market winding down, has meant that there may have been some last-minute negotiations to reassess the reserve price on their properties. Some auctions have started late, or required the auctioneer to have extended delays caused by these late negotiations of reserves. So, are bidders waiting for properties to be passed in, before getting involved in the ‘real’ negotiations. In some cases, yes. But this is not always the best tactic to employ when purchasing property.

Clearance rates are moderating, and the buyer-pool is growing smaller as buyers are making their purchases this Spring, these are both trends typical of this time of year. It might put some pressure on vendor prices over the coming weeks, as the auction market starts to slow down before the holidays, but it’s a great time to buy!

Next weekend, Melbourne should be hosting another 1,120 auctions; and within that there are some excellent opportunities for buyers. We cannot wait!

Passionate buyers still turned out on Saturday to brave the 35 degree heat, but it was vendors who were really feeling the heat with high stock levels giving buyers plenty of choice. This weekend, there were 934 auctions reported, and a clearance rate of 68 per cent. From those auctions, 632 sold, and 302 were passed in, 146 of those on a vendor bid. In addition to the auctions, there were also 358 private sales reported.

With less than two months left in the year, it’s worth noting that vendors had a relatively good October, as home values rose more strongly than in August or September. RP Data have released figures stating that house values in Melbourne increased by 2.1 per cent in October, and by 1.8 per cent over the last three months. Units had a small rise of 0.5 per cent last month, and 2.2 per cent in the quarter. Auction market conditions are similar to the private sale market in Melbourne, with the time on market tightening from 33 days to 31 days over the last week.

The November market has buyers spoilt for choice, meaning that vendors will need to recognise the shift in the competition. Fewer bidders at auctions and an increase in properties being passed-in on Saturday will also be making vendors feel the heat in this Spring market.

Last week’s drop in the dollar to a four-and-a-half-year low, would provide a further discount to a growing number of Chinese property buyers, who’ve been buying up in Melbourne, attracted by the schools and opportunities in the property market. However the full effects of the change in the dollar value won’t be immediately felt.

One thing is for certain, vendors with properties located close to transport links and amenities, in good streets, will not be short of interested parties. Our team have had one of the busiest week’s on record last week, and we’re looking forward to more of the same this week. To top it all off, there’s 1150 auctions scheduled next weekend!

A new record number of auctions were held in Melbourne on Saturday – with over 1500 properties auctioned. The clearance rate of 73% was a strong result from 1508 auctions recorded in Melbourne this weekend. From those auctions, 1102 sold, and 406 were passed in, 193 of those on a vendor bid. In addition to the auctions, there were also 442 private sales reported.

 Our property advisors attended auctions in Mont Albert, Brighton, Elsternwick, Armadale and Blackburn South with all auctions attracting multiple bidders but not all selling under the hammer. This demonstrates that vendors expectations are not quite meeting the market, and are having to fail before their expectations come down to a level that will meet the market.

 There are only a few more weeks of new properties hitting the market for auction this year and then we will enter into a period where private sales and off market transactions will become the more prevalent way that buyers will purchase property.  We believe that we will still see some activity over what is a ‘usual’ quieter period due to the increase in buyers that we have witnessed this year, and some may even fail to purchase before Christmas arrives.