Melbourne Auction Results – March 31, 2014
By Peter Sarmas on 31 Mar 2014
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| Melbourne Auction Results 24th March – 30th March 2014 | |||||
|---|---|---|---|---|---|
|
71% 1124 |
Sold at Auction: | 661 | Auction Volumes: | $686.05m | |
| Passed in: | 329 | Weekend Last Month: | 73% | ||
| Sold Before: | 130 | Weekend Last Year: | 69% | ||
| Sold After: | 4 | Houses: | 72% | ||
| Unreported: | 156 | Units: | 69% | ||
Housing Prices Enter Danger Zone?
A couple of interesting figures were released last week which had every man and his dog providing their own expert opinion on the property market.
So why not me?
March Brings Strong Auction Results
Research house RP Data are due to release their Value Index Result for the five capital cities in Australia which have shown a near record growth throughout the month of March.
Head of research Tim Lawless says, “over the first 27 days of March 2014, major capital cities increased by 2.1 per cent. Clearly the flat conditions through February were an aberration and the strong housing market momentum recorded late in 2013 is continuing.”
“The market is stable, it’s not ridiculous but steady and it’s started to peak a bit. I believe people have come to their senses.”
Mr Lawless supported his view citing, “this is supported by the current strong level of auction clearance and the ongoing escalation in housing finance commitments. Given this we would anticipate a strong result for the month of March…”
Providing a More Balanced View
On the back of this latest round of data, senior economist and writer for the Financial Review, Christopher Joye led an article titled, “House Prices Enter Danger Zone”.
According to Mr Joye average Australian house prices are now 4.4 times disposable income and on track to top valuation peaks of 2006 and 2010. However, SQM Research’s Louis Christopher said Australian property was 3-4 per cent overvalued at most.
Fellow writer David Bassanese provided a more balanced view and in fact rebuffed Mr Joye’s bubble talk. Bassanese recognised that house price to income ratios are only just above average, mortgage affordability is better than the previous peak and rental vacancy yields are not far from long term averages.
There are signs that we are seeing a more steady market in Melbourne. Photo: Hadi Zaher
Currently, in Melbourne the property market is becoming balanced. An unprecedented 1,000 plus auctions took place in the past 3 weeks with 1,320 properties reportedly being auctioned over the weekend. From these, 1,124 auctions were reported to the REIV for a clearance rate of 71 per cent.
With nearly 200 results still to be followed up by the institute there are signs that we are seeing a more steady market in Melbourne rather than one that is booming, with pass-ins being noted in a number of Melbourne’s inner and outer suburbs.
Strong Clearance Rates are Showing a Stabilised Market
This doesn’t mean that we are still not witnessing strong clearance rates as Jellis Craig Kensington reported a 71 per cent clearance rate while real estate agent Adrian Butera from Compton Green witnessed an 85 per cent clearance for his properties surrounding Yarraville and Williamstown.
Meanwhile in the north east, Barry Plant Doncaster have seen an 86 per cent clearance rate and property prices rise up to 24 per cent over reserve.
“We are seeing a more steady market in Melbourne rather than one that is booming.”
Commenting on the market over the weekend, Director Adrian Butera of Compton Green Real Estate said, “the market is stable, it’s not ridiculous but steady and it’s started to peak a bit. I believe people have come to their senses.”
Next weekend the REIV expects around 1,220 auctions.
APM Melbourne Weekend Auction Results – Week Ending March 31, 2014
(please see attached)
Top 5 Houses
1. 21 Monash Avenue, Balwyn $3,520,000
2. 17 Rolls Court, Glen Waverley $3,416,000
3. 4 Mt Ida Avenue, Hawthorn East $3,235,500
4. 69 Alfred Crescent, Fitzroy North $3,140,000
5. 9 Fairfield Avenue, Camberwell $2,888,000
Top 5 Bargain Houses
1. 2 Dalton Drive, Melton South $179,000
2. 17 Leggatt Street, Melton South $201,000
3. 186 Hodgins Road, Hastings $210,000
4. 18 Aleppo Crescent, Frankston North $220,000
5. 7 Westcott Parade, Rockbank $285,000
Top 5 Apartments
1. 487-489 Nicholson Street, Carlton North $1,724,000
2. 5 Isabella Street, Malvern $1,550,000
3. 16A South Road, Brighton $1,450,000
4. 3/14 Wilson Street, Mont Albert $1,427,500
5. 1/15 Maylands Avenue, Balwyn North $1,400,000
Top 5 Bargain Apartments
1. 1110/131 Pelham Street, Carlton $163,500
2. 13/3 Gourlay Road, Hillside $230,000
3. 2/200 Edwardes Street, Reservoir $235,000
4. 5/79 Kernot Street, South Kingsville $240,000
5. 4/11 Johnson Street, Reservoir $257,500
Source: REIV
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