Melbourne Auction Results – July 14, 2014
By Peter Sarmas on 14 Jul 2014
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| Melbourne Auction Results 8th-13th July 2014 | |||||
|---|---|---|---|---|---|
|
74% 388 |
Sold at Auction: | 230 | Auction Volumes: | $199.45m | |
| Passed in: | 100 | Weekend Last Month: | 298 | ||
| Sold Before: | 57 | Weekend Last Year: | 379 | ||
| Sold After: | 1 | Houses: | 78% | ||
| Unreported: | 140 | Units: | 69% |
||
Is the Melbourne Property Market Too Big To Burst?
Now I don’t mean to sound like a spruiker, but this is a question that’s been plaguing the property media for some time. It has left many potential buyers and sellers uncertain.
As well as briefly discussing the property market over the weekend, I thought we would take a look at why I don’t believe we are entering a housing bubble and why I feel the Federal Government has an interest in keeping property attractive to the public.
A clearance rate of 74 per cent was recorded this weekend, compared to 71 per cent last weekend and 73 per cent this weekend last year. There were 388 auctions reported to the REIV, with 288 selling and 100 being passed in, 37 of those on a vendor bid.
On The Ground
More than one or two buyers seem to have taken advantage of the wintry conditions by choosing to hit the ski slopes for school holidays. At least that’s how it felt in some parts of the Melbourne market the past two weeks with buyer, seller and bidder numbers down.
3/15 Maling Road Canterbury. Photo: Realestate.com
Even though the auction clearance rate looks strong there are a growing number of auctions with pre and post auction negotiations contributing to this number rather just the properties being sold on the day under the hammer.
“Like it or lump it the only industry driving the Australian economy at the moment is property and this is being reflected in the lift in retail sales, real estate transactions and property construction, many businesses are benefiting.”
A typical example of a runaway auction was at this modest 2 bedroom unit I inspected for a client. Expected to fetch in the low $600,000s we saw some fierce bidding with the auction reaching $720,000 on the day. Prime location seems to be everything at the moment.
Is Melbourne’s Property Market Too Big To Fail?
Like it or lump it the only industry driving the Australian economy at the moment is the property sector and this is being reflected in the lift in retail sales, real estate transactions and property construction, many businesses are benefiting.
The Federal Government or should I say the Reserve Bank has an interest in keeping interest rates low to stimulate our economy until big business improves. This is expected at the end of 2015.
“Perhaps the powers that be are waiting on the US to lift rates to see a fall in the Aussie dollar, but that could be sometime?”
My feeling is the interest in self-managed super funds will help prevent a major property correction. As billions of dollars of super fund money has helped keep the Australian share market strong, so too will the property market begin to see a ‘price floor’ in property. In particular the smart money will chase areas and investment property with high long-term capital growth rather than short-term tax depreciation benefits and high cash flow return.
Congratulations to my vendors Annette and Rob who sold their beautiful unit on Saturday in front of a crowd of 60 onlookers. Thank you for entrusting your property with me.
