Melbourne Auction Results – August 17th, 2015
By Peter Sarmas on 16 Aug 2015
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| Melbourne Auction Results 17th August 2015 | |||||
|---|---|---|---|---|---|
|
77% 735 |
Sold at Auction: | 464 | Auction Volumes: | $513.78m | |
| Passed in: | 168 | Last Weekend: | 960 | ||
| Sold Before: | 102 | Last Year: | 661 | ||
| Sold After: | 1 | Houses: | 80% | ||
| Units: | 70% | ||||
A clearance rate of 77 per cent was recorded this weekend compared to 77 per cent last weekend and 73 per cent this weekend last year. There were 735 auctions reported to the REIV, with 567 selling and 168 being passed in, 71 of those on a vendor bid. So far this year, there have been over 22,000 auctions held, this is up 14 per cent from last year and 12 per cent from 2010.
Signs of an improving Melbourne auction market are back with clearance rates bouncing from the year-low of 76 per cent reported three weeks ago, according to Domain. Considering the increase in the volume of properties coming onto the market in August, it appears there has been enough demand to absorb the uptick in supply this winter.
Melbourne’s auction clearance rates have revived over the past two Saturdays with the local market gaining momentum in what’s shaping up as a strong spring performance. My concern is how much stock is yet to come on the market. Are we going to see a repeat of the glut of stock witnessed the last three months of last year where property prices actually fell in parts of Melbourne?
According to Domain’s Dr Wilson, “sellers remain confident in the strength of the local market – still providing the best winter results since 2009.”
Research House Corelogic says home values surged 2.8% higher over the month of July, increasing across all capital cities, except for Adelaide.
- Home values increased by 2.8% across the combined capital cities in July 2015 and rose across all cities except for Adelaide.
- Home values have increased by 4.0% over the three months to July 2015 with values lower in Adelaide, Perth and Darwin.
- On an annual basis, combined capital city home values have increased by 11.1% which represents the strongest annual growth rate since April 2014 when values rose by 11.5 per cent over the year.
- Over the past year, Sydney (18.4%) and Melbourne (11.5%) have continued to record the strongest rate of growth, with Brisbane (3.9%) the next best performer at a much lower level. Following on from this Adelaide (3.4%), Hobart (2.5%) and Canberra (1.2%) home values have risen over the year, while Perth (-0.3%) and Darwin (-5.3%) home values are lower than they were in July 2014.
- Sydney’s annual home value growth is now at its highest level since December 2002. (Core Logic)
Chinese Currency Devaluation Spells Higher Melbourne Property Prices
As late as last week we spoke about the fall of the Australian dollar and how this will especially impact property prices in Melbourne and Sydney. This week China shocked the world and devalued their currency, the Yuan, by 3.1 per cent in an effort to stimulate their ailing economy.
This unexpected move by China has experts’ predicting a rise in Australian property prices as Chinese investors seek to find a “safe haven”. Both ANZ and Deloitte were seeing a boom in business from China with Deloitte saying they had helped close $300-$400 million worth of deals for high net worth Chinese individuals and developers in the last quarter.
While the US dollar makes that country less affordable when compared to Australia, the fall in the Chinese currency could prove to be a boon and help increase interest in commercial, development and residential investment.
I’m not sure we have seen the end of foreign investment in the Australian property market, nor do I believe have we seen the end to property price rises. Increased equity in current property holdings, record low interest rates, low affordability, throw in the expected further lowering of the Australian dollar and an improving Australian economy in 2017, according to the RBA, and there are many reasons why property prices will continue the current trajectory.
Street Advocate
59 Beavers Rd Northcote
This week we were active in the hip and very popular suburb of Northcote, where we helped assist our lovely vendor sell their home which had been in the family for more than 70 years. Read More
TOP 5 HOUSES
1. 95 Rowell Avenue, Camberwell $3,200,000
2. 37 Lynch Crescent, Brighton $3,000,000
3. 62 The Highway, Mount Waverley $2,935,000
4. 41 Fisher Parade, Ascot Vale $2,605,000
5. 18 Yeneda Street, Balwyn North $2,600,000
TOP 5 BARGAIN HOUSES
1. 6 Warianna Court, Kurunjang $250,000
2. 21 Lionheart Court, Epping $282,000
3. 10 Ewarts Road, Don Valley $301,000
4. 125 Seventh Avenue, Rosebud $320,000
5. 30 Earlston Place, Craigieburn $320,000
TOP 5 APARTMENTS
1. 1/312 Barkers Road, Hawthorn $1,805,000
2. 2/82 Vale Street, East Melbourne $1,805,000
3. 16.1/193 Domain Road, South Yarra $1,720,000
4. 4 Tanner Street, Richmond $1,505,000
5. 1/270 Balcombe Road, Beaumaris $1,220,000
TOP 5 BARGAIN APARTMENTS
1. 2/8 Walnut Street, Carnegie $235,000
2. 2/1152 Heatherton Road, Noble Park $290,000
3. 8/264 Hope Street, Brunswick West $305,000
4. 5/27 Dwyer Street, Clifton Hill $321,500
5. 3/133 Grange Road, Glen Huntly $325,000
Source: REIV
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