Melbourne Auction Results – September 28th, 2015
By Peter Sarmas on 27 Sep 2015
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| Melbourne Auction Results 28th September 2015 | |||||
|---|---|---|---|---|---|
|
74% 993 |
Sold at Auction: | 578 | Auction Volumes: | $615.47m | |
| Passed in: | 261 | Last Weekend: | 1,050 | ||
| Sold Before: | 154 | Last Year: | 59 | ||
| Sold After: | 0 | Houses: | 78% | ||
| Units: | 65% | ||||
There were 993 auctions reported to the REIV, with 732 selling and 261 being passed in, 111 of those on a vendor bid.
Next week, the REIV is expecting around 65 auctions due to the AFL Grand Final – the biggest event on Melbourne’s sporting calendar.
Preliminary Finals And Super Saturday
This weekend marked one of the biggest auction weekends on the calendar for September as vendors scrambled to cash in on what’s believed to be the “peak” of Melbourne’s property market.
With only one more week for the AFL Grand Finals to be played out and a public holiday the day before, the 26th of September was seen to be the last opportunity for vendors to capitalise before the expected Spring rush due from October onwards.
Politics and Economics
In a surprise move, Tony Abbott was unceremoniously ousted by his so called “mates” in parliament. Poor Tony was seen packing up the surf board and bike into an old Mercedes, but all was not lost with Tony Abbott holding his 40 year school reunion, apparently setting Kirribilli alight!
So what of the new Prime Minister Malcolm Turnbull and his Treasurer Scott Morrison? Well the rhetoric has definitely changed from doom and gloom to something like hope for our economy and country. Good old Mal has even turned around the fortunes of his beleaguered Liberal party, snapping a 30 month Prime Ministership losing streak.
This change of leadership has already seen a dramatic jump in consumer and business confidence, which happened last time Abbott ousted the then Prime Minister Julia Gillard. Consumer confidence jumping 8.7% this time, the biggest weekly rise since Roy Morgan started the series in 2008.
So from a consumer confidence perspective, a change in government is a good thing. But what happens once the honeymoon period comes to an end and Aussies start looking for real direction and policy to improve the nation’s mediocre and flat economic growth?
There is also hope this government will bring less of the old school bully type politics we’ve been exposed to the past two years and more stability to inspire business and consumer spending. In turn cashed up businesses and consumers sitting on the sidelines will open their wallets and begin spending in earnest.
On yet another note, Treasurer Scott Morrison has already put property on the agenda in his first week in politics. Promising to review the capital gains tax, negative gearing and looking at ways to make housing more affordable, especially for first home buyers. He has already hinted at housing supply as being a constraint on affordability and will look at ways to tackle this problem.
Global equity markets have been in turmoil this past week and this has seen our share market plunge some (6%) in September alone as a result of the US Fed again not choosing to increase rates. Meanwhile property prices, particularly in Melbourne and Sydney, have seen double digit price growth in the past year and clearance rates have sat above 70%.
The concern I see here is what I call the ‘boy who cried wolf’ syndrome. For years leading economists and property experts have warned of the impending property bubble, instead we have seen one of the biggest all-time property booms between 2013-2015. Caution appears to be thrown in the wind by many would-be property buyers, this at a time when due diligence and property research is absolutely paramount.
I am fielding at least one enquiry a week from investors looking to buy an off the plan property which they know nothing about and in areas they haven’t researched for capital growth, rental demand and jobs growth. All key factors when looking to “invest“ your hardearned!
Looking forward in the short term a new Prime Minister should see increased confidence and talk of further rate cuts, possibly as low as 1.5% (ANZ), will continue to fuel the current interest in property.
Investors Switching Loans
Recent tougher lending standards introduced by the Australian Prudential Regulatory Authority (APRA) appear to be having an impact on the amount of investors deciding to purchase property or not. Latest data shows that many property purchasers, calling themselves investors, have had a change of heart and are now refinancing to a homeowner loan.
Why? Quite simply, loans for investment properties have shot up significantly with rates now above the 4.80% mark while, at the same time, interest rates for owner occupier loans have plummeted below 4.0%, yep Newcastle Permanent even advertising a 3.89% three year fixed rate.
Street Advocate
Photo Source: http://www.milesre.com.au/
1/7 Kenilworth Parade, Ivanhoe
With so many properties auctioned over the weekend there was no doubt that we would see the strength of the property market this weekend when we lined up to bid for a two bedroom villa unit located at 1/7 Kenilworth Parade, Ivanhoe. Read More
TOP 5 HOUSES
1. 38 Edro Avenue, Brighton East $3,910,000
2. 129 Park Drive, Parkville $3,520,000
3. 36 Sarah Crescent, Templestowe $3,130,000
4. 7 Stewart Street, Brighton $3,020,000
5. 4 Wood Street, Fitzroy $2,875,000
TOP 5 BARGAIN HOUSES
1. 2 Amanda Court, Melton $235,000
2. 9 Dunvegan Drive, Kurunjang $285,000
3. 30 Frawley Street, Frankston $327,000
4. 4 Roche Court, Epping $330,000
5. 1 Torana Court, Doveton $335,000
TOP 5 APARTMENTS
1. 55/400 Victoria Parade, East Melbourne $1,760,000
2. 13/156 Beaconsfield Parade, Albert Park $1,600,000
3. 68 Little Page Street, Albert Park $1,595,000
4. 25A Salisbury Street, Moonee Ponds $1,375,000
5. 1/6 Victoria Street, Brighton $1,350,000
TOP 5 BARGAIN APARTMENTS
1. 6/7-9 Farnham Court, Flemington $276,000
2. 8/21 Empire Street, Footscray $280,000
3. 2/264 Melrose Drive, Tullamarine $280,000
4. 313/36-38 Darling Street, South Yarra $297,000
5. 16/45 Alma Road, St Kilda $315,500
Source: REIV
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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]
