Market Slow Down? I Think Not!

88 Canterbury Street, Flemington
Photo: Nelson Alexander

Several publishers recently asked me to comment on claims that Melbourne’s property market was in slow down.

I was emphatic then, and I’m emphatic now: there is no sign of slow down in the desirable suburbs.

Last week I didn’t venture outside a 10km radius of the city, and I cited five auctions I attended that all exhibited strong sales results.

This week, however, I attended three auctions and only one was within the 10km radius. The other two were in the south-east; Murrumbeena and Parkdale.

Did it change my perspective on the state of the market? No.

Did the middle suburbs show a lesser level of buyer demand? No.

Did the auction results fly past the vendor’s reserves? On every occasion, yes.

So Why are Analysts and Commentators Talking About a Cooling of the Market?

I believe there are two obvious factors they are taking into account, but they aren’t necessarily showing the whole picture.

The outer fringe, first home buyer house and land territories have continued to struggle since the first home buyers grants and new construction boosts finished in recent years.

These areas cannot be compared to the inner and middle rings, which are tightly held, in demand and attracting cashed up buyers.

“I was emphatic then, and I’m emphatic now: there is no sign of slow down in the desirable suburbs.”

The second factor relates to timing. Christmas Day will be upon us in just two weeks. We have had an enormously energetic run-up to the Christmas finish line, and unlike the past two years, buyers have been prepared to stretch for the right property – and in some cases, not only stretch, but pounce earlier than auction.

These bold buyer actions imply that most of the good properties are now sold. The stock that remains is either less desirable or on the market because the listing agents have recognised that the later auction date will result in a magnificent showdown between excited and cashed up buyers.

This Flemington home attracted quite a buyer showdown
Photo: Nelson Alexander

A Property Showdown

A perfect example of such a situation was that of 88 Canterbury Street in Flemington.

I had clients bring this property to my attention at the beginning of the campaign and I was engaged at that moment to secure it for them.

After visiting the property, I realised that despite a need for some maintenance work, it was a perfect canvas in a great street, and its beautiful façade was just perfect for my buyers.

“What was there not to like about 88 Canterbury Street, Flemington?”

The home was full of opportunity but equally full of warmth and life as it was.

I wholeheartedly gave it the thumbs up and tried my darnedest to secure it prior to auction. The agent wasn’t easily swayed, however, and recognised that he had enough buyer interest for a great showdown on auction day.

The home was full of warmth and life
Photo: Nelson Alexander

The Auction

And showdown it was. With five bidders, the reserve of $720,000 was surpassed in a heartbeat and from $790,000, bidding was fast, fierce and furious between two females.

The hammer fell on the final bid of $816,000 – a massive $96,000 above reserve.

I had no shock or surprise, however. Flemington boasts easy city access, some very cute cafes on Pin Oak Crescent, great shops along Racecourse Road and some of the prettiest brick period houses.

This particular property was one of a pair and it was surrounded on either side by two other almost identical gorgeous pairs. The sun was shining and the leafy treetops provided welcome shade. What was there not to like about 88 Canterbury Street, Flemington?

The only thing I didn’t like was missing out on it…

For more information about Flemington, read our suburb profile here.

Sales and Growth in Flemington
Photo: Pricefinder

Points of Interest in Flemington, Postcode 3031

Flemington Racecourse
Flemington Farmers’ Market
Flemington Primary School
City of Melbourne
City of Moonee Valley