Hi,

The Domain Melbourne auction clearance rate came in at 67% over the weekend on a what was a ‘Super Saturday’.  Of the 913 auctions that were reported, 610 had sold at auction.  This is stronger than the 61% clearance rate from the same time last year.

Whilst we are seeing increased activity in the Melbourne property market this year, at this stage reports and also what we are witnessing (generally speaking) there have been no increase in property prices.  In many cases, properties are selling exactly where the value lies and buyers are still very cautious at what they are willing to spend due to the increased cost in mortgage repayments.

Uncompromised properties at various price points are attracting good interest, this may be family homes that are renovated, presented well, located on a quiet street, lots of natural light, or a villa unit in a small block of 2 or 4 which is located close to public transport and shops.  Also well located apartments that have great outlooks, a good floorplan, well maintained small blocks are also attracting multiple bidders at auction, but again, runaway results are rare.

Feedback from many selling agents and also we can confirm we are witnessing the same, was that February was a strong month of activity mostly due to the interest rate cut but with the looming federal election and the uncertainly of Donald Trump’s tariffs that this has slowed somewhat.

I attended the auction of 3/110 Caroline Street, South Yarra which is a well located apartment, in an excellent block, nice northern outlooks, very liveable but could benefit of an update later down the track.  The auction was very well attended with what looked like five or six parties there with intention to bid.  A mix of single professionals, couples and what appeared to be some downsizers looking for a weekend, city pad.  The property was quoted $740,000 to $760,000 prior to auction.  The last one sold in the block for $757,000 which was arguably not in as good of position in the block.  The opening bid was $768,000 and a second bidder came in straight away at $780,000 and the two parties went head to head where it sold for $855,000.

Have a great week!

Kim Easterbrook – Managing Director