Melbourne Auction Results – August 4, 2014
By Peter Sarmas on 4 Aug 2014
No Comments yet, your thoughts are very welcome
| Melbourne Auction Results 28th July-3rd August 2014 | |||||
|---|---|---|---|---|---|
|
74% 456 |
Sold at Auction: | 283 | Auction Volumes: | $241.08m | |
| Passed in: | 120 | Weekend Last Month: | 684 | ||
| Sold Before: | 52 | Weekend Last Year: | 529 | ||
| Sold After: | 1 | Houses: | 75% | ||
| Unreported: | 100 | Units: | 75% | ||
Is Housing Affordability A Growing Issue?
Auction numbers slowed down over the weekend when 456 properties went under the hammer.
This figure is in line with the number of auctions held at the same time last year.
Auction clearance rates have been incredibly consistent the past four weeks. According to APM, they have hovered at 73 per cent. This weekend was no exception with clearance rates at 76 per cent.
“Last week all four major banks announced an out-of-cycle rate cut, as they believe the housing boom is being driven by investors…”
Melbourne’s east continues to produce the best results: its clearance rates are averaging at around 80 per cent.
APM reports that the outer east remains the standout performer; its median house price has gone up 17.3 per cent over the financial year to a new record median of $611,000.
The REIV is anticipating 2,600 auctions during August, which is 10 per cent higher than the 10 year average of 2,275 auctions for this month.
What can the government do to help with housing affordability?
Photo: Trulia, Creative Commons
Affordability The Growing Issue?
Housing affordability seems to be back on the agenda.
The Real Estate Institute of Australia (REIA) told the federal inquiry into affordable housing that home ownership in Australia has been declining after four decades of stable levels.
So what are some of the options available to the government to help improve affordability?
Access to Super Funds, Abolished Stamp Duty The Answer?
One suggestion, which has worked in Canada and New Zealand, is to allow first home buyers access to their super funds to buy property.
Another recommendation was for the states and territories to abolish stamp duty, which was blamed for distorting the market and reducing property investment.
The third alternative involved releasing more land for housing and streamlining the development process in order to reduce costs for developers.
Developments That Are Already Helping The Issue
My personal opinion is that certain developments in the property market have already improved affordability and rental conditions for tenants to levels not seen for a number of years – and they will continue to do so.
According to SQM Research, vacancy rates around the nation have been rising to 2.3 per cent.
Melbourne in particular has seen a flood of new properties being built and completed over the past few years, especially new apartments. This has put pressure in established inner city areas where stock levels have been low for some time.
“One suggestion… is to allow first home buyers access to their super funds to buy property.”
Apart from providing new affordable rental accommodation, these developments have significantly increased supply, which has subsequently affected the property and rental values for neighbouring new and established homes – units and apartments in particular.
Last week all four major banks announced an out-of-cycle rate cut, as they believe the housing boom is being driven by investors, and five-year fixed rates were lowered to 4.99 per cent.
Money this cheap, and a continued improvement in consumer sentiment, should keep property prices stable until at least the end of 2014.
Top 5 Houses
1. 61 Merton Street, Albert Park $3,235,000
2. 24 Laver Street, Kew $2,210,000
3. 1A Wiseman Street, Hawthorn East $2,156,000
4. 4 Currajong Avenue, Camberwell $1,900,000
5. 25 Scott Street, Canterbury $1,870,000
Top 5 Bargain Houses
1. 3 Diamond Avenue, Albanvale $275,250
2. 40 Finchley Park Crescent, Tarneit $293,500
3. 59 Gap Road, Sunbury $300,000
4. 5 Dullard Street, Rosebud $310,000
5. 4 Arsenal Court, Epping $333,000
Top 5 Apartments
1. 35 Durrant Street, Brighton $1,121,000
2. 2/109 George Street, East Melbourne $1,022,000
3. 19A Swyer Street, Hampton $1,015,000
4. 406/129 Fitzroy Street, St Kilda $1,000,000
5. 4/363B Lygon Street, Brunswick East $939,000
Top 5 Bargain Apartments
1. 2/7 Jenner Court, Hampton Park $264,000
2. 4/128 Park Street, Moonee Ponds $270,500
3. 9/24 Margaret Street, Carnegie $290,000
4. 12/9 Churchill Avenue, Maidstone $297,000
5. 4/91 Grosvenor Street, Balaclava $319,000
Source: REIV
For a basic snapshot of your suburb’s performance or a property report customised for your property, request a Free Market Report.
If you are thinking of buying, selling or investing and would like a FREE 5 minute chat
with Street News Director Peter Sarmas, please contact him on 0418 740 606
or via email at [email protected]
