Hi,
The clearance rate jumped into the 80%’s over the weekend and whilst too early to tell, it may suggest Melbourne’s Property Market might be turning the corner. There were 496 auctions reported to the REIV on the weekend with 286 selling at auction, 122 selling before auction and 88 properties passing in. In addition, there were a huge amount of private sales being 392.
The sun has started shining, word has it that interest rates will go on hold this week and there is a feeling of optimism back in Melbourne’s Property Market. Not all open for inspections were busy, but some that were priced well achieved huge number of buyers through. More buyers appear to be circling. As mentioned in previous week’s, we have been receiving strong enquiry from intestate investors wanting to purchase investment properties in Melbourne (and Victoria) as they are viewing the downmarket as an opportunity to buy. It just feels like we might be turning the corner.
Good news from last week that it looks like interest rates will go on hold tomorrow. Whilst total inflation increased from 3.6 per cent in March quarter to 3.8 per cent in the June quarter (RBA had predicted this) but ‘trimmed’ inflation fell slightly in the June quarter. There is more talk about interest rates being cut by the end of 2024 due to disinflation being on track, but really that won’t be known until the next quarter of inflation data being released which would need to show that disinflation is on track and inflation being back in the target range in the desired time frame.
My team attended an unusually competitive auction in Boronia on the weekend. 48 Albert St, Boronia is a three bedroom, two bathroom original home on 1,180sqm. The property was located on a main road with a large school across the road and the crowd mostly appeared to be owner occupiers rather than developers. A huge crowd of over 100 people attended and the selling agent indicated there were 60 requests for contracts during the campaign. A number that is unheard of, especially in the current market. There were so many bidders we lost count but we believe there were 13 to 14 bidders in total, the property was announced on the market at $770,000 on a price quote range of $700,000 to $770,000 and sold for $970,000.
On the other side of town, a single level townhouse at 2/35 Alfred Street, Beaumaris was quoted at $1,200,000 to $1,300,000 prior to auction. The auction attracted a few bids but then the bidding stalled at $1,240,000, the auctioneer came out after a long half time break and announced the property on the market with the property immediately selling to the highest bidder.
Have a great week!
Kim Easterbrook – Managing Director