Melbourne Auction Results – April 14, 2014
By Peter Sarmas on 14 Apr 2014
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| Melbourne Auction Results 7th April – 13th April 2014 | |||||
|---|---|---|---|---|---|
|
70% 1201 |
Sold at Auction: | 703 | Auction Volumes: | $638.61m | |
| Passed in: | 359 | Weekend Last Month: | 67% | ||
| Sold Before: | 137 | Weekend Last Year: | 68% | ||
| Sold After: | 2 | Houses: | 73% | ||
| Unreported: | 242 | Units: | 66% | ||
Melbourne’s Auction Results and Clearance Rates Hold Steady But There Are Warning Signs
More than 1,500 properties went under the hammer this weekend in what has been the eighth consecutive week of 1,000 plus properties going to auction across Melbourne.
According to RP Data’s Robert Larocca ,”this weekend brings to a close the busiest first quarter of auctions in the city’s history with a rise in both volumes and use of auctions. There have been 58 per cent more auctions compared with this time last year.”
The good news is that the Melbourne auction market held its ground. Despite overwhelming stock levels, the REIV reported a clearance rate of 70 per cent from 1,201 auctions.
Back in the Hunt
I was engaged to bid on behalf of a client on Saturday in St Kilda East. After conducting a thorough analysis on previous sales and speaking to local agents and valuers we sat down with the buyer to set a limit which was fair and reasonable.
1 Raglan Street, St Kilda East
Learn more about this property here.
A Victorian period property in St Kilda East always gets the heart fluttering and we thought we were in with a chance when a small crowd gathered to bid. Unfortunately the other bidder probably thought the same.
After starting the bidding at $900,000 the price slowly crept up to the $1million mark at which point we expected the property would be called on the market. Unfortunately it wasn’t and after a few more bids we walked away for the property to be passed in, back in the hunt.
Development Disputes Creating Concern in Melbourne’s Property Development Market
Real concerns are beginning to emerge in the property development market. It’s recognised that stock levels for properties with plans and permits have almost dried up and even second tier properties are inexplicably selling.
With local councils proposing a plan to introduce new minimum land requirements for development we believe this will have a huge impact on the residential property market, in particular for new apartments over the next few years.
“We have to ask whether these new apartments will impact the price of established apartments in the future.”
In the short term, along with the expected rise in interest rates, there are a lot of large developments currently being built or about to be built over the next two years. And with many of these purchasers being investors I see some major risks with the price of these properties going forward.
The Real Questions
There already appears to be a number of units on the market, new as well as established which appear to be struggling to sell. Often due to the issue of oversupply or being a B-Grade property.
The other concern is where will these small to medium type developers go to advance their next project? Whether there will be more of the same in the already high density areas or whether they will all move to the outer suburbs which are already seeing supply issues remains to be seen.
“The local councils proposed plan to introduce new minimum land requirements for development will have a huge impact on the residential property market.”
With all this supply I believe the tenants will be the ultimate winners here, provided they are happy to move into these high rise buildings in the inner city or new estates in the outskirts of Melbourne.
How will this supply and their subsequent selling of these properties, affect established units? Will they compete for the same tenants and affect rental prices? Although we haven’t seen any evidence of this as yet, we have to ask whether these new apartments will impact the price of established apartments in the future.
APM Melbourne Weekend Auction Results – Week Ending April 14, 2014
(please see attached)
Top 5 Houses
1. 338 Cotham Road, Kew $2,753,000
2. 18 Turner Street, Malvern East $2,425,000
3. 26 Yarravale Road, Kew $2,300,000
4. 11 Young Street, Brighton $2,165,000
5. 20 & 22 Elgin Avenue, Armadale $2,121,000
Top 5 Bargain Houses
1. 24 Manning Avenue, Kurunjang $235,000
2. 10 Hadley Lane, Craigieburn $255,000
3. 43 Leonid Drive, Rockbank $270,000
4. 39 Wattleglen Street, Craigieburn $284,000
5. 13 Scarlet Drive, Doveton $311,000
Top 5 Apartments
1. 1/47 O’Grady Street, Albert Park $2,470,000
2. 1/31 Monomeath Avenue, Canterbury $1,761,000
3. 19 Barrow Place, Burnley $1,750,000
4. 52A Denman Avenue, Glen Iris $1,615,000
5. 133 Simpson Street, East Melbourne $1,565,000
Top 5 Bargain Apartments
1. 15/1310 Sydney Road, Fawkner $246,000
2. 10/562 Pascoe Vale Road, Pascoe Vale $275,000
3. 15/441 Brunswick Road, Brunswick $295,000
4. 27B Lloyd Avenue, Reservoir $301,000
5. 307/10 Bruce Street, Box Hill $305,000
Source: REIV
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