Melbourne Auction Results – May 26, 2014
By Peter Sarmas on 26 May 2014
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| Melbourne Auction Results 19th – 25th May2014 | |||||
|---|---|---|---|---|---|
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73% 1017 |
Sold at Auction: | 602 | Auction Volumes: | $643.01m | |
| Passed in: | 271 | Weekend Last Month: | 328 | ||
| Sold Before: | 144 | Weekend Last Year: | 720 | ||
| Sold After: | 0 | Houses: | 76% | ||
| Unreported: | 146 | Units: | 69% |
||
Properties Selling but Bidding Subdued
There is no doubt the Melbourne property market is holding firm in spite of the large number of listings auctioned over the weekend.
As reported by the REIV there was a clearance rate of 73 per cent from 1017 listed properties which has risen from 70 per cent last week and has also surpassed last year’s 69 per cent for the same period.
Inspecting Properties and Bidding
Having been out and about this weekend for a couple of client’s I was able to gauge the market’s strengths and weaknesses through first-hand experience.
My first inspection was of a two bedroom flat in Ivanhoe, which has caught the attention of a number of first home buyers and investors. Though, the auction is a few weeks away this property is so well located that there certainly won’t be a shortage of bidders for this one. However make sure you do your due diligence or hire someone who has your best interest and knows what they are doing.
23 Meredith Street, Elwood
Photo: Marshall White
I spent my afternoon in Elwood, inspecting 10 Lawson Street, and bidding at 23 Meredith Street. Both of these properties represent what i see as happening out in the market at the moment –this has been supported by the general feedback from agents auctioning over the weekend.
“Having spoken to the agents throughout the campaign and after the auction I am aware that they expected stronger bidding and a higher price.”
Some recent news indicates that the market is softening, with consumer confidence down and the continual vast supply of property has surely made property buyers more cautious.
Accordingly, expecting over $1.9 million, 10 Lawson St hardly had a sole within fifteen-minutes from the auction. Even though the property was very unique and presented a beautiful interior and petite yard, it was notably passed in.
At the Auction
On the other hand, Meredith Street was brimming with buyers and neighbours alike, although only few were expected to bid beyond the vendor’s expectations. Marshall White had run an excellent campaign getting buyers to the property, although even they were surprised at the lack of bidding.
Initially starting with a bid of $1.15 million we took the property to $1.26mill from where it continued in $1,000 bids to track to $1.3 million. Most of the crowd, including myself assumed the property would be on the market at this point, though Peter Kakos and agent Kim McQueen appeared to have their work cut out with the vendor finally agreeing to put the property the market at $1.33 million.
A further $1,000 bid did the job and the property was secured at $1.331 million by a chap in his 30’s.
23 Meredith Street, Elwood
Photo: Marshall White
What the Agents are Saying?
Having spoken to the agents on Meredith Street throughout the campaign and after the auction, I am aware that they expected stronger bidding and a higher price.
“A number of properties have been renovated and styled in some way to help drive sales at a higher price.”
The general sentiment over the weekend from agents was that agents were selling property prior to or just after the auction on minimal bidding in particularly at the higher end, over $1 million.
Tony Tuccitto from Barry Plant Doncaster reported a strong weekend with 11 from 13 properties being sold, “We had really strong bidding and results for a number of our properties – 2 Haldane court Doncaster East sold for $1,036,000 and 28 Airds Rd Templestowe Lower sold for $777,000. Some of our peoprerties were also sold prior to auction with a couple negotiated after the auction.”
David Woods from Hocking Stuart Albert Park said, “we are seeing mostly local buyers transacting currently in the market at the top end with 4 ‘off market’ deals between $3million and $12 million in the last week, and more specifically local to Albert and Middle Park. Foreign interest is strong over 5 million but tend to be ex-pats.”
On the Economic Front
In the major states, sentiment around housing is particularly fragile, with the ‘Time to Buy Index’, being down by around 30 per cent from September in both NSW and Victoria. As indicated in the minutes of the May Board meeting, the RBA expects to keep rates on hold, ‘for some time yet’.
The unemployment expectations index fell 0.5 per cent in May following on from a 3.2 per cent decline in April. The fall in unemployment expectations indicates an improvement in the labour market.
Next Week and Beyond?
More than 1,000 properties are expected to be auctioned next weekend. The strength of the property market this year has seen some savvy vendors capitalise on recent strong property prices in their area.
A number of properties have been renovated and styled in some way to help drive sales at a higher price. The only issue is that the time taken it takes to complete a renovation, often may mean that a property may miss the peak selling period and can present a risk if the money is not recouped.
