Melbourne Auction Results 13th July 2015

Melbourne Auction Results 13th July 2015
77% Clearance Rate 507 Reported Auctions	Sold at Auction:	316	Auction Volumes:	$271.91m
	Passed in:	115	Last Weekend:	576
	Sold Before:	75	Last Year:	524
	Sold After:	1	Houses:	82%
			Units:	72%

 

A clearance rate of 77 per cent was recorded this weekend compared to 77 per cent last weekend and 69 per cent this weekend last year. There were 507 auctions reported to the REIV this weekend, with 392 selling and 115 being passed in, 45 of those on a vendor bid. The number of auctions is expected to increase over the next fortnight with on average 750 auctions in each of the next two weekends.

Source: sourceable.net

Will the latest Chinese and Greek Turmoil Affect Property Prices?

Economic Update

The event the whole world was waiting on came and went last Monday, leaving sharemarkets around the world in turmoil.

The reason for the referendum vote put to the Greeks last week was to decide whether to accept or reject the austerity measures put to them by the European Council and in affect decide whether to stay or leave the Eurozone. The vote was a resounding “no” by more than 60% of the voters, which on face value looked like Greece actually saved face and won the fight against tough measures.

In reality though it looks like Greek President Tsipras has had worse measures imposed on his country as capital dries up in Greece and their negotiating position deteriorates.

Share markets around the world experienced wild swings of gains and losses. Closer to home our major trading partner China saw 30% (close to $4 trillion) wiped off its share market value – 11 years of Greece’s gross domestic product, just to put things into perspective. I see this event as a more relevant issue to Australia’s economy and property market.

For those complaining about Chinese foreigners “buying up Australia” and pushing property prices up, particularly in Melbourne and Sydney, this latest event could put the brakes on one of our strongest economic drivers.

In the past 12 months the Chinese sharemarket rose 150%, much of it created through speculation and margin lending, in effect, borrowing heavily to buy into shares. So a sudden recent downturn in the sharemarket triggered a number of margin calls and a “sell off” causing the sudden collapse.

As prices rose in the sharemarket so too did the wealth of many Chinese people. The by product of this market rally was to create a “wealth effect” where investors who had made a mozza on the market would go out and spend big on holidays, luxury goods, new cars and property in Australia.

Yes, that’s where we come in. The question now remains is how many of the Chinese developers building in Australia, who by they way are listed on the Chinese stock exchange, have enough confidence and capital to continue their build. And how many of the mainland Chinese investors who were being sold the off the plan apartments in Melbourne and Sydney are able to complete settlement and continue to have the confidence to keep investing.

It will be interesting to see how things transpire, especially in what I call the “Chinese markets”, Melbourne’s Eastern suburbs, like Doncaster, Glen Waverley, Balwyn and the like. How will our new apartment market be affected, considering our Asian friends are such big investors? Are we seeing the start of the expected collapse in Melbourne’s apartment market?
 

Street Advocate – On The Street In Richmond

Today the Street Advocate team ventured down to not-so-sunny Richmond to follow a few auctions that were taking place and gauge property interest on two rather contrasting properties and auction. After what were predicted to be blizzard weekend conditions, the weather held up despite some patchy rain.

 

 

 

 

 

 

 

 

 

 

 

 

 

The first auction that we reviewed was: 16 Madden Gr, Burnley (Advertised as Richmond) which was a “pretty”, cottage-style, renovated Edwardian described as “A renovated Edwardian that creates an indoor-outdoor world of its own in a location of consummate convenience“.

Renovated to a high standard the home had that feeling of being bright and airy. Despite being immediately across the road from Burnley Train Station, it’s proximity to public transport and Richmond’s bustling Swan St appear to more than compensate for the noise factor of passing trains and nearby Burnley Street.

Inside, the property consisted on 2 well-sized robed bedrooms as well as a smaller third bedroom which could also pass as a study or home office. Serviced by one central bathroom, the property had polished floorboards from the front hallway ascending to the main hub of the property’s kitchen and dining area with a polished concrete flooring area for the lounge.

From the living area, the property opened up to a large, decked Al-fresco area that would lay host for an exceptional summer gathering. Well furnished, screened for privacy and neatly landscaped were factors which boosted the property’s overall appeal, a credit to the vendor who had clearly put in the necessary time and effort in preparing the property for sale. Something we see as so important, when selling in today’s market.

A crowd of around 50 punters had gathered with a mix of young professionals, empty-nesters and nosy neighbours.The auction got off to a slow start with the auctioneer asking for a $950,000 opening bid. After some unsuccessful cajoling auctioneer Clayton Smith from Jellis Craig Richmond, exercised his right to a vendor bid of $950,000 to open proceedings and the auction began to gain momentum.

Two young professionals bid solidly in $10,000 increments as the auction moved along in a steady motion with a third young professional entering at approximately the $1,130,000 mark. The first bidder continued strong whilst it had become clear that the second bidder had exceeded their budget limitations. The first and third bidders continued to rally until the property reached $1,170,000 and the auctioneer declared that the property was officially on the market and was going to be sold. The auction slowed to $2000 increments with the final price being $1,180,000 and the third bidder successful on the day.

The property was advertised without an asking price but it would be a fair assumption to suggest that the vendors would have been reasonably happy with the days proceedings as their expectations appeared to be surpassed, just above reserve price. The home had sold for $935,000 back in September 2013 with a profit to this day of $245,000 with renovation costs, agent fees, interest payments and stamp duty to consider.

 

 

 

 

 

 

 

 

 

 

 

 

 

The second auction up for review was: 34e Canterbury St, Richmond which from the street was oozing with modern appeal. This townhouse not only looked the part from the outside with it’s exposed aggregate concrete driveway and timber clad garage door but presented as a neat, spacious and warm townhouse. Described as “A quality built near new town residence offering an ultra-modern contemporary lifestyle – Ideal home for the Empty Nester having the master bedroom and all living areas on the ground floor.“

Inside I was impressed by the bathroom’s floor to ceiling tiles, polished floorboards that bounced light throughout the house and the very intimate outdoor area with high fences and light timber screening to allow for privacy in what is a densely built-up area.
The kitchen was modern as you would expect with stone bench tops and Smeg appliances complete with a butlers pantry that doubled as a laundry which was to be honest, a little bit of a squeeze.

The floorplan was well thought-out with master bedroom complete with ensuite downstairs suitable for down sizers/empty nesters, as well as two good sized bedrooms upstairs sharing a two-way bathroom. Location was good, nestled away conveniently between Swan St and Bridge Rd on a quiet one-way street with garage space for one vehicle and an additional car park to the left of the house which is extremely convenient given the lack of parking options in the area.

Another slow start to the auction saw auctioneer, Russell Cambridge from Biggin & Scott – Richmond start with an asking price of $1,300,000. Without an opening bid, Mr Cambridge went inside to seek instructions from his vendors and unfortunately from that point on the auction never gained momentum aside from a lonely bid of $1,000,000 which was declined much to the bidders bemusement who muttered a few expletives under his breath in rejection.

With no further interest the property was passed in at a reserve price of $1,490,000. This was a complete contrast to the previous auction of the Edwardian house in Burnley and shows how fickle the current market is. There is no doubt inner city houses are seeing the strongest interest in the current market and these two results reflect that.
 

TOP 5 HOUSES 
1. 20 Carrington Street, Balwyn North $2,051,000
2. 24 Kawarren Street, Balwyn North $1,815,000
3. 21 Fraser Street, Glen Waverley $1,680,000
4. 77 Heath Street, Port Melbourne $1,640,000
5. 15 Afton Street, Aberfeldie $1,600,000

TOP 5 BARGAIN HOUSES
1. 12 Odessa Court, Werribee $288,000
2. 60 Meadow Glen Drive, Epping $365,000
3. 24 Peppercorn Parade, Epping $371,500
4. 54 Woods Street, Beaconsfield $375,000
5. 16 Helpmann Crescent, Epping $376,000

TOP 5 APARTMENTS 
1. 20 Anderson Street, South Melbourne $1,675,000
2. 10/6 Wellington Crescent, East Melbourne $1,380,000
3. 2 Toronto Avenue, Doncaster $1,288,000
4. 15 Parkers Road, Parkdale $1,181,000
5. 9 Norma Barnett Lane, Port Melbourne $1,180,000

TOP 5 BARGAIN APARTMENTS
1. 4/73 Kingsville Street, Kingsville $235,000
2. 3/81 Hammond Road, Dandenong $289,000
3. 12/35 Glen Huntly Road, Elwood $290,000
4. 6/25A Arthur Street, Coburg North $302,500
5. 2/24 Highland Street, Kingsbury $307,500

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 
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