Melbourne Auction Results – September 22, 2014
By Peter Sarmas on 22 Sep 2014
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| Melbourne Auction Results 15th-21st September 2014 | |||||
|---|---|---|---|---|---|
|
75% 894 |
Sold at Auction: | 550 | Auction Volumes: | $570.88m | |
| Passed in: | 225 | Weekend Last Month: | 674 | ||
| Sold Before: | 118 | Weekend Last Year: | 885 | ||
| Sold After: | 1 | Houses: | 78% | ||
| Unreported: | 174 | Units: | 70% | ||
The Melbourne Suburbs With The Most Violent Crimes
Melbourne’s property market rolls on and yet again proves me wrong with a solid showing over the weekend.
The clearance rate was 75 per cent, compared to 73 per cent last weekend and 78 per cent this weekend last year. Make no mistake, these numbers are very solid on the back of 894 properties reported to the REIV.
Quality properties are achiveing good results with good bidder numbers and again, Melbourne’s inner and outer eastern suburbs have the strongest clearance rates.
“I believe [violent crime rates] play a major role in the decision-making process when buying a property…”
Big volumes are expected each weekend until Christmas, so we expect the Melbourne property market to be tested once the Grand Final between the Hawks and Swans is done this weekend.
Will pent up demand plateau as supply increases during October? Only time will tell, but there’s no doubt we are set for an interesting next few months. I am expecting clearance rates to come back a little as the supply finally catches up with demand.
Buying A Home In A Violent Area: Factoring Crime Into The Decision-Making Process
Chris Vedelago wrote an interesting front page story in Sunday’s Age which caught my eye. It was about the crime rates in Melbourne and regional Victoria and discussed which suburbs and towns had the greatest incidences of crime.
I believe this sort of information plays a major role in the decision-making process when buying a property, and is therefore very relevant to any perspective investor or property buyer.
Interestingly, Melbourne’s CBD topped the list with 10,670 violent crimes reported over the past 5 years. However, it is important to put this into perspective as the CBD now draws nearly 900,000 people a day – a staggering figure by any means.
The Age has put together a great interactive map showing which postcodes had the most violent crimes in 2013-14.
The Top 5 Suburbs For Violent Crimes
1. Melbourne CBD
2. Fitzroy
3. Dallas/Broadmeadows
4. Dandenong
5. Southbank
The Top 5 Regional Towns For Violent Crimes
1. Morwell
2. Seymour
3. Sale/Glencoe
4. Corio/Norlane
5. Ararat/Barton
On The Economic Front
Also making headlines last week were concerns raised by the Reserve Bank of Australia about the potential for investors to get burnt when prices eventually fall in the property market.
SQM’s Louis Christopher – who by the way correctly picked a 15 to 20 per cent hike in Sydney’s house prices last year – believes there will be further price growth in both Melbourne and Sydney (5 to 9 per cent in Melbourne and 8 to 12 per cent in Sydney).
On the back of these expected rises, the RBA is contemplating whether to slow certain segments of the buying market, such as investors.
“Will pent up demand plateau as supply increases during October?”
According to the Australian Financial Review, some of its chosen measures (known as macro prudential tools) will be examined during a financial services review this Wednesday. One such tool, known as Loan to Value Ratios or LVRs, could be used to lower the economic risk through touhgher lending standards.
Decreasing the LVR from a typical 80 per cent lend to a 60 per cent lend just for investment loans only can limit the parts of the property market that are currently overheating without affecting the total market. Such a measure was successfully put into place in New Zealand recently for the first home buyers and was very effective.
Street Advocacy News: Buying & Selling Property With Street News
My latest client has asked me to look at a broad range of properties with investment and development potential.
The property we are currently conducting due diligence on is a block of flats in Vere Street, Abbotsford. We will find out whether it fits the bill when it goes under the hammer this coming Wednesday.
The property, which includes four one bedroom flats, two two bedroom flats and three car parks on title, currently leases for over $85,000 per annum, and it could be a good buy.
“Melbourne’s inner and outer eastern suburbs have the strongest clearance rates.”
For those looking to make a quick buck by subdividing and selling off the flats individually, this project presents a greater risk.
But the astute investor willing to park their money in property for a few years could do worse than this – depending on the price it goes for of course! The agent is quoting $1.5 million.
Top 5 Houses
1. 15 Nevis Street, Camberwell $3,170,000
2. 134 Park Street, St Kilda West $2,925,000
3. 23 Coppin Street, Malvern East $2,750,000
4. 9 Wallace Grove, Brighton $2,600,000
5. 1-3 Wynstay Crescent, Ivanhoe $2,600,000
Top 5 Bargain Houses
1. 97 Eramosa Road, Somerville $267,500
2. 15 Thwaites Road, Pakenham $310,000
3. 12 Neptune Terrace, Mernda $320,000
4. 19 Strathaird Drive, Narre Warren South $325,000
5. 12 Lima Court, Westmeadows $333,000
Top 5 Apartments
1. 1A Rose Street, Brighton $3,525,000
2. 703/55 Beach Street, Port Melbourne $2,460,000
3. 86 Halifax Street, Brighton $1,975,000
4. 5/15-17 Bent Street, Brighton $1,950,000
5. 3/242 Beaconsfield Parade, Middle Park $1,860,000
Top 5 Bargain Apartments
1. 403/591 Elizabeth Street, Melbourne $140,750
2. 204/268 Flinders Street, Melbourne $147,500
3. 9/21 Hampton Parade, West Footscray $177,000
4. 3/327 High Street, Thomastown $210,000
5. 2/3 Perkin Avenue, Pascoe Vale $250,000
Source: REIV
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