Hi,
The REIV reported a decrease in the clearance rate to 75% on what was a low volume, cold auction weekend. 466 properties went under the hammer across the city with 239 properties selling at auction, 109 before auction and 118 passing in. In addition, there were 153 private sales. In comparison, the same time last year resulted in a clearance rate of 74% on 559 auctions and the final result from last week came in at 83% on 473 reported auctions.
The Melbourne Property Market has been exceptionally quiet over the past few weeks. Auction numbers are down, new listings are low and most Selling Agents (and a lot of Buyers Agents :)) had departed Melbourne’s cold weather to have a half time break before tackling the second half of 2024. This is not unusual and happens every year. Now that most schools are back, we are expecting the amount of new listings to increase over the next five weeks leading into September, where it will quieten down again due to the AFL football finals.
As we know, Melbourne investors have been exiting the property market in droves over the past six to twelve months, but interestingly, we have noticed an increase in Melbourne investor enquiry who are now looking at Melbourne as a market to purchase in. These savvy investors buy when the market down, and there is no doubt we have been in a tough property market this year. But with vacancy rates at very low levels (which will worsen), rents rising and prices down, some investors are now considering purchasing in Melbourne due to the rare opportunity to buy in a down market. Geelong is also an area of high interest as it offers a more affordable price point and slightly higher rental yield and also has very low vacancy rates.
A couple of strong auctions results to report over the weekend.
97A Flinders Street, Thornbury went under the hammer on Saturday and was a very active and competitive auction. The well located, three bedroom, two bathroom home with a north facing rear was quoted at $1,350,000 – $1,460,000 prior to auction. The auction attracted five bidders with the property being announced ‘on the market’ at $1,550,000 and selling well above reserve for $1,681,000.
A surprising and interesting auction was the property at 1-8/24 Walsh Street, Ormond. The property is a block of 1960’s apartments in need of work. Land size is 858 sqm. Usually difficult to sell, the auction attracted five bidders and more interested parties who did not put up their hand. The property sold for $3,050,000 which was $530,000 over reserve. The buyer pool were investors and builders looking to renovate and sell.
Have a great week!
Kim Easterbrook – Managing Director
