Melbourne Auction Results – May 4th, 2015
By Peter Sarmas on 3 May 2015
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| Melbourne Auction Results 4th May 2015 | |||||
|---|---|---|---|---|---|
|
80% 905 |
Sold at Auction: | 576 | Auction Volumes: | $642.87m | |
| Passed in: | 180 | Last Weekend: | 120 | ||
| Sold Before: | 147 | Last Year: | 809 | ||
| Sold After: | 2 | Houses: | 83% | ||
| Units: | 74% | ||||
Bumper Auction Numbers and Clearance Rate
A clearance rate of 80 per cent was recorded this weekend compared to 82 per cent last weekend and 69 per cent this weekend last year.
There were 905 auctions reported to the REIV, with 725 selling and 180 being passed in, 82 of those on a vendor bid.
Melbourne’s inner suburbs have led the way this weekend with the top three auction suburbs – South Yarra, Richmond and Brunswick – all on the CBD fringe. These high auction levels reflect the current strength in the inner city market, with the median house price for Melbourne’s inner suburbs breaking the $1.1m barrier for the first time this year.
The spotlight this week was squarly on foreign buyers with both the Federal and Labour Victorian governements targeting this group with new policies which could hurt the fragile property market according the Property Council of Australia.
Tony Abbott and his party are cracking down on foreigners and those who help them illegally buy Australian homes. Jail terms of up to three years and fines of up to $637,500 are on the reday to be dished out.
Meanwhile Victorian Treasurer Tim Pallas, in his wisdom will slug foreign buyers $330 million worth of tax. Under Labour’s new proposed policy, foreign nationals, many Chinese, will have to pay an extra 3% of the purchase price of a house as of july 1st and an extra 0.5% land tax from 2016. This is on top of the proposed fees Tony Abbot and his party are looking to slug foreign home buyers – $5,000 for properties under $1mill and an additonal $10,000 for every additional million dollars.
Let’s hope this over-exuberance towards foreign property buyers does not hurt one of our strongest economic drivers – the housing market.
Stock Market has Worst Week in Three months
Read the headline in this Saturday’s Age! Does this relate to real estate? A number of investors have been piling into shares the past few years, looking for that 7 per cent fully franked return and price growth, as the Aussie share market has edged closer to 6000 points.
For those of you still are wondering how this could relate to property, the ASX reached an all-time-high of 6828 points back in November of 2007. The latest instability and plunge in local and global share markets will begin to see people exiting shares and putting more money into property which has, traditionally in the past, been seen as a safe haven. The spectacular fall in share prices back in 2008 will certainly be playing on the minds of many investors, serving as a warning which could happen again. A number of investors will look at taking some profit and reducing their exposure to shares.
How did the Local Property Market Fair This Week?
Speaking to agents, visiting auctions and open homes, the Melbourne property market is motoring on, although not every property is selling under the hammer with multiple bidders and smashing reserves. One example was at 6 Prentice St, Elsternwick which struggled to reach reserve and be put on the market. Biggin Scott agent Bill Stavrakis battled to get the bidding flowing, like extracting teeth – highly excruciating and slow. Quoted at $1.5million, this 3 bed plus study renovated property seemed to have everything going for it and in front of a 60 plus crowd, mainy young professionals, managed to achieve $1.67mil to the delight of the vendors, just surpassing the $1.6mil reserve price.
Barry Plant Doncaster managed to sell all of their 12 auctions on Saturday under the hammer, with many surpassing their reserves some by more than 20 per cent.
Meanwhile, Andrew Crotty of Biggin Scott Richmond also had a successful day on Saturday clearing 12 from 12 properties however felt there appeared to be some softening in the market as 3 properties had to be negotiated post auction.
If you’ve been following our weekly wraps you would recall that we predicted the increase of stock levels a number of weeks ago. The ANZAC Day weekend marked the end of the holiday interrupted auction period. This first May weekend has seen an explosion of auctions, over 900 properties went to market with an 80 per cent clearance rate, a solid result!
Street Advocacy: Buying & Selling Property With Street News
This week we launched two of our three vendor advocacy properties and were very pleased with the response. Our Watsonia property had a whopping 29 groups through on Saturday, with no less than 7 requests for contracts, whilst our lifestyle one acre Donvale property had 9 groups through, on top of the 7 on Thursday, also with 4 contract requests.
In both cases we strategically presented and marketed the property to maximise the number of enquiries and selling price. We called in our stylist to help declutter and look at ways to increase the marketability of each property. Both properties were styled and professionally photographed. Although too early to call both campaigns a success, the two vendors are already seeing the benefits of our professional advice.
On a final note, the Reserve Bank is meeting this Tuesday to talk rates again and is expected to leave rates on hold.
TOP 5 HOUSES
1. 67 St Vincent Place, Albert Park $4,210,000
2. 23 Orrong Road, Elsternwick $3,010,000
3. 9 Glenview Avenue, Malvern $2,990,000
4. 37 Hopetoun Avenue, Canterbury $2,830,000
5. 81 Bogong Avenue, Glen Waverley $2,510,000
TOP 5 BARGAIN HOUSES
1. 2 Chelmsford Crescent, St Albans $300,000
2. 13 Photinia Street, Doveton $302,000
3. 28 Welwyn Parade, Deer Park $313,000
4. 19 Deveney Street, Pakenham $315,000
5. 3 Eugenia Street, Doveton $320,500
TOP 5 APARTMENTS
1. 2/27 Darling Street, South Yarra $2,175,000
2. 3B Bryson Avenue, Brighton $2,115,000
3. 32A Sunlight Crescent, Brighton East $1,755,000
4. 20 Waverly Street, Sandringham $1,677,000
5. 10A Butler Street, Camberwell $1,485,000
TOP 5 BARGAIN APARTMENTS
1. 4/6 Mayston Street, Hawthorn East $201,000
2. 5/6 Mayston Street, Hawthorn East $230,000
3. 36A Windrock Avenue, Craigieburn $236,000
4. 180A Grand Boulevard, Craigieburn $242,500
5. 36 Windrock Avenue, Craigieburn $257,000
For a basic snapshot of your suburb’s performance or a property report customised for your property, request a Free Market Report.
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
or via email at [email protected]
