Melbourne Auction Results – November 24, 2014

Maybe There Is More Left In The Property Market? 

A clearance rate of 67 per cent was recorded this weekend, compared to 66 per cent last weekend and 65 per cent this weekend last year.

Of the 1073 auctions reported to the REIV, 720 sold and 353 passed in, 195 of those on a vendor bid.
 
A total of around 35,000 auctions have been held so far this year. The market will become quite buoyant over the next fortnight, as 3,100 auctions are scheduled to go ahead.  

Something stood out to me when I was reading the auction results in The Age – the number of properties that passed in at auctions in St Kilda, Bentleigh East, Essendon, Northcote and Glen Iris were unusually high.

There were two other things I found particularly noteworthy – the fact that units recorded low clearance rates across all suburbs in Melbourne, and the growing number of properties being sold prior to auction.

A significant number of St Kilda auctions passed in this weekend Photo: The Home Page

Let’s Face It: Property Is Driving Our Economy

This week very little was reported about something that I believe will make a huge difference to the current property market. 

Let me take you back 2 years, when RBA Governor Glenn Stevens made the decision to start lowering interest rates to 60 year record lows. This was done in order to transition the Australian economy from the mining investment downturn to property.

Just when I had started to think that our property cycle may have peaked, I read an article by Martin North this week highlighting the Governor’s position on housing:

“Glenn Stevens, in an address to the Committee for Economic Development of Australia (CEDA) Annual Dinner today, included some further important comments on the housing sector.

He was at pains to highlight what potential upcoming changes on lending standards would not be focussing on. Rather, these changes are an attempt ‘to stretch out the upswing.’

In other words, the RBA still wants to use housing as part of the ongoing economic growth lever, despite high debt levels and high house prices.”

With this in mind I cannot see a downturn in the property market for the next 6 to 12 month in major cities such as Brisbane, Melbourne and Sydney. 

This also means there will be more building and development when it comes to new residential property, which will increase the property bubble and therefore the downturn when that eventually occurs.

Photo: Domain

Street Advocacy News: Buying & Selling Property With Street News

I was out and about again this weekend trying to hunt down an investment property for my fantastic clients.

What was interesting about this property was the amount of buyers it attracted,  in what’s supposed to be a market in oversupply!

This lovely villa unit – 1 of 3 situated in the northern suburbs of Melbourne – was quoted at $550,000 to $600,000. 

“No matter what the open time or the weather conditions are like, if the property is well priced, scarce and good value, there will be a crowd inspecting it.”

We started off the bidding at $610,000 just to get things moving along. Our due diligence process gave us an indication of our price limit, and unfortunately we did not manage another bid. The property went on the market at $680,000 and sold for $681,000 to the surprise of the 30-plus crowd and 3 advocates present.

I then continued to 3 other opens later in the day, where I made an interesting discovery. No matter what the open time or the weather conditions are like, if the property is well priced, scarce and good value, there will be a crowd inspecting it or if an auction, bidding. However, if it is a B or C grade property, inspections and interest will be limited. 

So the buyers appear to be picking the eyes out of the market due to the huge supply of property. It looks as if this will continue right up until the last auction weekend – December 20th.

Top 5 Houses

1. 33 Hawthorn Grove, Hawthorn $6,125,000
2. 13 Kintore Street, Camberwell $4,680,000
3. 24 Walmer Street, Kew $3,920,000
4. 23 Wills Street, Kew $3,550,000
5. 26 Walsh Street, Deepdene $3,205,000

Top 5 Bargain Houses

1. 27 Moreton Street, Frankston North $190,000
2. 12 Haven Court, Westmeadows $317,000
3. 22 Dunkinson Street, Narre Warren $317,000
4. 13 Branson Street, Rosebud $343,000
5. 29 Larkspur Drive, St Albans $360,500

Top 5 Apartments

1. 14A Plant Street, Malvern $1,648,000
2. 1/14 Bamfield Street, Sandringham $1,370,000
3. 54/400 Victoria Parade, East Melbourne $1,310,000
4. 47A Edgar Street, Glen Iris $1,240,000
5. 2/53 First Street, Black Rock $1,210,000

Top 5 Bargain Apartments

1. 7/9 Ostia Court, Thomastown $250,000
2. 19/2 Jessamine Avenue, Prahran $275,000
3. 3/56 Golflinks Road, Glenroy $302,000
4. 2/108 Cross Street, West Footscray $305,500
5. 10/263 Lennox Street, Richmond $321,000

Source: REIV

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