Hi ,

The auction clearance rate dropped to 75% last weekend on 518 reported REIV auctions.  Of the 518 auctions, 289 sold at auction, 100 before auction and 129 passed in. The same weekend last year produced a clearance rate of 79% on 598 auctions.  In addition, there were 161 private sales.

The higher end of the market continues to perform well with 11 properties last month selling for over $10,000,000.  Whilst the middle tier of properties seemingly have less buyers due to higher interest rates, the $10,000,000 plus market is coming through unscathed due to the amount of buyers not needing a loan to purchase.

On the flip side of this, the lower end of the property market is also generally competitive due to more buyers lowering their budgets to take into consideration the higher interest rates and this is where largely a lot of the mortgage holders are.

The REIV released their March quarterly data this morning showing that median house price in Melbourne actually rose 2% for the quarter with houses in Regional Victoria decreasing by 1.5%.  It is the locations where most of the holiday homes are located seem to be leading the charge in declining property prices… eg Mornington Peninsula, Torquay and so on.  A few reasons are contributing to this, one being the demand has reduced significantly post-covid period, rising interest rates is making it harder for people to hold onto a second ‘lifestyle’ property, and also land tax is a contributing factor.

Slowly but surely buyers seem to be have a stronger interest in unrenovated properties.  Build costs have stabilised and competition on renovated properties has been high.  92 Ireland Street, West Melbourne was quoted at $1,000,000 to $1,100,000 prior to auction with strong bidding pushing the price to $1,231,000 which was $81,000 over the reserve.

The highest sale for the week was 46 Heyington Place, Toorak (5 bedroom renovated home on 1,018 sqm of land) selling for $17,500,000 off market.

Have a great week!

Kim Easterbrook

Geelong Property Market Update from Vicky Whittaker

According to the Heron Todd White property clock, Geelong has officially hit the bottom of the property market; meaning Geelong is currently at the lowest price point and an upward swing in prices is predicted.

Geelong currently has 30% more stock on the market compared to this time last year. This is giving a greater selection of properties for investors and owner occupiers which results in more room to negotiate, helping eliminate the emotional or impromptu purchase.

Geelong attracts investors and homeowners alike, with families aspiring to take advantage of prestigious schooling opportunities plus an enormous selection of housing configuration for lifestyle living and everything in between. Geelong offers great diversity being on the doorstep of Torquay and the Great Ocean Road, plus easy access to metro, the Bellarine and country Victoria. There is an abundance of job opportunities, with Work Safe offices, NDIS, Cotton On, Barwon Health and TAC being among the largest employers in the Geelong Region.

There is plenty of planned infrastructure in Geelong with the Geelong Ring Road expansion, Geelong Convention centre, housing and commercial developments in central and outer suburbs plus schooling, kinder and child care services. Partner this with an easy 50 minute commute to Melbourne CBD’s bustling social, culinary and professional possibilities.

With many investors selling up, rents should continue to rise as vacancy rates drop to the lowest levels in history.  With increase in supply and rising rents, this might be as good as time as ever to get into the Geelong property market.

Vicky Whittaker – Senior Buyer’s Agent (Regional Victoria)