Hi,
There were 735 auctions reported to the REIV over the weekend resulting in a clearance rate of 76%. 386 sold at auction, 176 sold before auction and 173 passed in. There were an additional 237 private sales. In comparison, the final result for last weekend was 735 auctions reported and a clearance rate of 79% and this time last year, 818 auctions were reported resulting in a clearance rate of 73%.
Property listings are expected to rise across Melbourne as we nudge closer to the ‘silly Spring season’. Spring historically is the time of year when many vendors choose to sell their properties as the weather improves and gardens are looking their best. There are still some investors exiting the market but we are expecting that to start to decline over the six to twelve months as rents have increased and interest rates are predicted to fall next year.
The next three months could offer some good opportunities for buyers which we may be shortlived as talk of interest rate cuts is already starting to get buyers thinking that now is as good as time as any to enter the Melbourne property market.
That being said, the sub $2m housing market is competitive and prices are holding up with many auctions we attended over the weekend sold under strong competition.
An interesting sale at 6 Ann Street, Pascoe Vale on the weekend which demonstrates that well presented homes are still attracting good interest. What is interesting about this result is whilst the property has been updated and the gardens landscaped, the property lacked a second bathroom and the floorplan was not great. The property was quoted at $1,100,000 to $1,200,000 prior to auction with four bidders participating in the auction. The property sold $185,000 over reserve for $1,385,000.
Another strong auction result at 103 Rennie Street, Thornbury. The auction was competitive with the first bid above the top of the range of $1,400,000 to
$1,500,000. The renovated, three bedroom, one bathroom, one car park property sold well above reserve for $1,720,000.
On the other side of town, a dilapidated house with a heritage overlay sold and surprisingly attracted three bidders at auction. 4 Shirley Grove, St Kilda East is an unliveable period home, four bedrooms, two bathrooms in need of extensive renovations but had a reasonable land size of 493 sqm of land. The property sold for $1,275,000 under the hammer.
The top end of the property market is quieter with fewer buyers circling. A big result is expected though at 203 Domain Road, South Yarra with the four bedroom, two bathroom grand period home across the road from the Royal Botanic Gardens received offers from four buyers. The property was quoted at $10,000,000 to $11,000,000 and the final sale price is expected to be in excess of the range.
Have a great week!
Kim Easterbrook – Managing Director
