Hi ,

The auction clearance rate produced a solid 78% on the weekend on a reported (to the REIV) 885 auctions.  508 properties sold at auction, 179 sold before auction, 3 after auction and 195 properties passed in.  In addition, there was a very high number of private sales, 436 in total.  In comparison, a similar amount of properties went to auction on the same weekend last year resulting in a clearance rate of 73%.

The weekend’s auction clearance rate was a little higher than expected with Melbourne’s property market still feeling somewhat patchy.  Buyers are still a little spoilt with choice and some vendor’s are having to adjust expectations to sell their property.  That being said, 508 properties selling at auction and 436 private sales are very strong numbers and demonstrates we are in a very active market.

Feedback from some selling agents is that there are still many buyers who have just started their search and are in the ‘research’ phase and others who are attending auctions but will not bid as they do not feel confident in buying without a ‘subject to finance’ clause.  Some potential buyers are attending auctions in the hope the property passes in and then hoping to put themselves into a position where they can negotiate that clause.  Buyers who attend auctions who are willing to buy ‘unconditionally’ are in a much stronger buying position.

The rental market is still proving very difficult for tenants.  SQM Research released vacancy rate data for February showing that Melbourne’s vacancy rate has further decreased to 1.0% from 1.1% in January and 1.1% for February 2023.  To achieve a balanced rental market, vacancy rates should be sitting around 2% to 3% so we are quite a way away from that.  Rents increased by an overall average of 1.5% in February and have increased an average of 12.6% (for both houses and units) for the previous 12 months.

The auction of 106 Lennox Street, Richmond attracted four bidders but only sold slightly above the reserve price.  The two bedroom, one bathroom requires work but the floorplan has been structurally updated in the past.  The property was quoted for $900,000 to $990,000 prior to auction and sold for $1,005,000 under the hammer.

The most expensive sale for last week was a five bedroom home in Mount Eliza.  56 Glen Shian Lane is a five bedroom, four bathroom, modern home with a four car garage set on over an acre of land boasting expansive views of Port Philip Bay.  The property sold for $7,528,000.

Have a great week!

Kim Easterbrook

Hi ,

The auction clearance rate is remaining consistent with 746 auctions reported to the REIV.  472 properties sold at auction, 91 sold before auction and 183 passed in resulting in a clearance rate of 75%.  In addition to this there were 161 private sales.  The final clearance rate for last weekend was 78% on a huge 1,159 auctions.  The same time last year, the clearance rate of 77% on 757 auctions.

The clearance rate in the mid 70’s suggests we are in a balanced market, however it does feel a little different to that on the ground.  Stock levels are high, and new listings are continuing to be loaded online to levels that have not been seen for quite some time.  Whilst many vendors may not disclose the real reason for selling, but this partly could be to do with the increase in interest rates and unaffordability.  This also could be partly due to some vendors not wanting to hold off anymore and there is certainly a sentiment of ‘let’s just get on with it’ out there.

Whilst some auctions are competitive, some are not, many are passing in and selling immediately afterwards.  More times than not there are only one or two buyers circling a property and therefore a vendor will be more open to selling before auction.  Some ‘expressions of interest’ campaigns are also not selling at the deadline and are being extended out with price adjustments.  We are also seeing many properties sell ‘subject to finance’ and this is due to a lot of the current property buyers are new to the market and are still waiting on their finance approval.

So whilst the auction clearance rate looks like we are in a balanced market on paper, the feeling on the ground is that we are more in a buyers market than a sellers market (generally speaking).   My feeling around this though is it could be short lived.  There are a lot of buyers out there actively looking.  But they currently have a lot of choice and not a lot of urgency to buy.  If stock levels tighten again (which they are likely to do at some time in the future), then the market could easily shift from a buyers market to a sellers market.

The villa unit market continues to be strong due to its more affordable price point in the market.  8/2 Lisson Grove, Hawthorn is a well located but small (and dated) two bedroom villa unit and was quoted $700,000 to $750,000 before auction.  Three bidders tried to secure the property with the property selling $85,000 over reserve for $835,000.

9 Bendigo Avenue, Elwood sold before the expiry of its ‘expressions of interest’ campaign.  The sale smashed records for the suburb with the five bedroom, five bathroom, 8 car basement home selling for $17,050,000 far exceeding the previous house record of $10,000,000 set in 2022.

Have a great week!

Kim Easterbrook

Hi,

The Melbourne property market had a big test on the weekend with 870 auctions reported to the REIV.  480 properties sold at auction, 176 sold before auction and 214 passed in resulting in a clearance rate of 75%.  In addition, there were 146 private sales.

The increase in properties on the market has allowed buyers a lot more choice than they have had in previous years.  As a result, it appears that many buyers are taking their time in purchasing and the FOMO (fear of missing out) we have seen in previous years has disappeared.  Generally speaking, buyers are still quite cautious about committing to purchasing although the motivation to buy is now stronger than it has been for the past twelve months.

As a result, we are seeing many properties selling quickly and prior to the expiry of their EOI campaign or before auction.  This is because many properties are only attracting one or two strong buyers.  There are of course exceptions to this and some well located family homes are still attracting multiple bidding at auction.

Property prices are holding up even though there is generally less competition on each property.  In many cases there are still one or two buyers willing to pay the current market value for the property which is resulting in less opportunistic buyers than what there was in the last quarter of last year.

A renovated, family home in Williamstown went to auction in front of a large crowd.  The five bedroom, two bathroom period home was quoted at $2,200,000 to $2,400,000 prior to auction with five bidders participating.  The property sold for $2,577,000 under the hammer.

A three bedroom, two bathroom villa unit in Moorabbin was in strong demand and the auction had participation from five bidders.  2/16 William Street, Moorabbin was quoted at $780,000 to $850,000 prior to auction and the opening bid of $900,000 put the property on the market.  The property sold for $1,085,000.

Have a great week!

Kim Easterbrook

Hi,

Auctions in Melbourne have commenced for 2024 with clearance rates hovering in the high 70%’s to 80% which are the highest clearance rates that have been seen in quite some time.  Last weekend, there were 675 auctions reported to the REIV with 395 selling at auction, 140 selling before auction and there were an additional 110 private sales.  There has been an increase in properties selling prior to auction with many vendors willing to sell if they receive a reasonable price rather than holding out to auction.

Talk of interest rates nearing to the peak and even declining later in 2024 is giving buyers confidence to purchase.  Over the Christmas break, we experienced extremely high level of enquiries from new buyers wanting to enter the real estate market (all different market segments, investors, first home buyers, upsizers and downsizers).  There have been so many reasons for buyers not to buy over the past four years, mostly being due to market uncertainties as a result of Covid and then rising interest rates.  But now it appears we nudging closer to inflation becoming under control and we are well and truly past the Covid lockdown days.  So 2024 is feeling like a good year for many buyers to finally make the move to either buyer a new owner occupied property or buy an investment property.

Whilst there has been a number of investors sell their investment properties over the past six months (due to rising interest rates and holding costs) there seems to be a number of new investors wanting to enter the market.  Lending to property investors has reached a six-year high with the ABS reporting that in December, 36 per cent of all housing finance went to investors.  Rising rents and low vacancy rates, in addition to ongoing housing supply issues are making it appealing for investors to enter the market.  This new wave of investors will likely be price sensitive though, as the increased interest rates will likely cap budgets for many in addition to investors wanting to minimise impact to their cashflow.

2024 is looking like an exciting and positive year for the property market.  Stock levels have been healthy so far this month and the word from many selling agents is that this should continue.  On the flip side of this, buyers have a lot more confidence to purchase as the market sentiment improves. So at this stage, it looks like there will be lots of transactions this year with good levels of stock to buy and the buyers in the market to purchase these properties.

Hi ,

There were 740 auctions reported to the REIV over the weekend resulting in a clearance rate of 73%.  413 properties sold at auction, 124 before auction, 1 sold after auction and there were an additional 236 private sales.  The same weekend last year there were 942 auctions resulting in a clearance rate of 68%.

CoreLogic released their national monthly Home Value Index last week which showed nationally, property prices has risen 0.6% which is the smallest monthly gain since February 2023 with Melbourne being down 0.1%.  This brings the quarterly growth to 0.6% across Melbourne which supports a balanced and stable market.  CoreLogic Research Director Tim Lawless makes a good point in regards to how historical property cycles might change in the future.  The higher end of the market usually leads the charge in a property cycle but with interest rates rising, and borrowing capacities reducing, it may actually be the middle ring of the market which is the one to watch when looking at property cycles.  This segment is where the strongest rate of growth is currently sitting.

The good news is that it is looking more unlikely that the RBA will increase interest rates tomorrow with the new inflation rates being below 5% for the first time in 20 months.  This still doesn’t mean there won’t be another rate rise early next year however for the time being, this news can give buyers some kind of confidence that we might be getting close to the peak.

2023 has been a very interesting year for the Melbourne property market, property prices still increased whilst interest rates were rising at an unexpected rate.  There have no doubt been some casualties who have had to sell their properties due to unaffordability.  But it also shows the resilience the property market has and population growth is strongly contributing to the strong demand.

This is the final property market wrap for the year.  Myself and the team wish you all a very Happy and Safe Holiday season and looking forward to updating you all on the property market in 2024.

Have a great week.

Kim Easterbrook

Gold Coast Property Market Update

The Gold Coast property market is a very different market to Victoria and in fact, any other state in the country.  Melbourne is the auction capital of the country where in comparison, the amount of properties that go to auction in Queensland is far less.

The reason for this is in Queensland, by law, an estate agent is not allowed to quote any price for the property if it is going to auction.  This leaves buyers scratching their heads and unsure as to how much they should pay or if the property is likely to be any where near their budget.  This is particularly hard for buyers from interstate and overseas.  The auctions are not fast and furious as they are in Melbourne & Sydney, often taking well over half an hour up to an hour as the auctioneer often pauses the auction to privately negotiate with a buyer. If he receives a higher bid from a buyer, he will reopen the bidding.

Most agents prefer to conduct private sales but don’t put a price on the advertisement which also leaves the buyer frustrated as to what they should pay.  Another point to remember is that there is not an “and/or nominee” option in Queensland, it is imperative that all buyers details are correct at the time of signing the contract as they cannot be changed once the contract is signed by all parties.

A very different market to Victoria and just reiterates why it is important to get professional help when trying to buy a property.

Jenni Wright – Senior Buyer’s Agent (Gold Coast)

Geelong Property Market Update

The activity in the Geelong property market has picked up and there has been an increase in available stock over the last few weeks as some vendors are keen to sell before Christmas.  Good quality properties that require minimal work have attracted multiple interested parties during negotiations from both first home buyers and investors.

Geelong has been recognised as one of the nation’s top future property hotspots. This is attributed to factors such as strong population growth, economic diversification, and the success of the Armstrong Creek urban growth corridor as a job creator. There have also been significant investments in the region, including defence manufacturing contracts, local infrastructure improvements, and the construction of a $294 million Geelong Convention Centre. These factors contribute to the desirability of buying property in Geelong.

The national valuation firm Herron Todd White has indicated they believe Geelong as reaching the bottom of the market on its national property clock, indicating a potentially favourable time for property buyers in the region.

Vicky Whittaker – Senior Buyer’s Agent (Geelong and Regional Victoria)

Hi ,

The second biggest auction weekend this year resulted in a surprisingly stronger clearance rate than I was expecting.  73% of properties that went to auction sold.  There were 820 auctions reported to the REIV in which 436 sold at auction, 159 sold before auction, 224 passed in and 1 sold after auction.  In addition there were 153 private sales.  As a comparison, the time last year there were 809 auctions resulting in a clearance rate of 64%.

The last interest rate rise seems to have had little impact on the property market albeit buyers are certainly more cautious and factoring in potentially more interest rate rises.   As with any previous interest rate rise, there is an element of shock and negativity surrounding the property market for a week or two and then a small recovery as buyers get their head around the new interest rate.  This last rate rise seems to be no different.

Many selling agents have been reporting lower numbers through open for inspections and less bidders at auctions and the market was beginning to feel very similar to the decline we saw leading into Christmas last year.  However, the results from the weekend show the clearance rate is significantly better than the same time last year.

There is no doubt the property market is patchy and some vendor’s are having to lower their expectations in order get their property sold.  There is a big difference between the level of competition on renovated family homes and anything that is compromised (poor floor plan, not renovated, not so great location, etc).

A renovated home in Ivanhoe went to auction on the weekend and attracted strong interest from buyers.  14 Della Torre Cres, Ivanhoe was originally quoted for $2,900,000 to $2,950,000 and was lifted during the campaign to $2,950,000 to $3,050,000.  The renovated four bedroom, three bathroom home with a double garage sold for a huge $3,621,000 making it the second most expensive home to sell in Ivanhoe for 2023.

Whilst in the south east, an unrenovated three bedroom, two bathroom townhouse in one of Toorak’s best streets passed in at auction.  70 Albany Road, Toorak failed to sell under the hammer but sold immediately afterwards for an undisclosed sum which we believe was below $2,000,000.

The next few weeks should bring some good opportunities for buyers as it does during most Christmas periods.  Both vendors and selling agents are generally motivated to sell before Christmas and we also expect off market activity to rise now that most auction campaigns for 2023 have launched.

Have a great week.

Kim Easterbrook

Hi ,

Melbourne’s auction clearance rate remained steady at 71% even after the RBA’s announcement of another interest rate hike.  724 auctions were reported to the REIV with 377 selling at auction, 150 before auction and 207 passing in.  Interestingly, there were only 99 private sales recorded which is low for this time of year where off market activity is usually higher.  In comparison, there were 802 auctions on the same weekend last year resulting in a clearance rate of 69%.

This week’s interest rate rise was another blow to mortgage holders however it should have come as no surprise.  It was likely that we were going to see another before the end of 2023.  What we weren’t expecting was that it is likely there may be another interest rate rise in December or February next year.

At this stage, the rate rise has had little effect on the auction clearance rate which has remained steady in low 70’s for a number of weeks.  This reflects a balanced market.  With rents rising, it is becoming more important that people have a roof over their head that they own and as a result, buyers are still transacting.

What might happen as a result is a drop in stock levels as some vendor’s are becoming increasingly cautious about selling their property in a market with rising interest rates.  I have heard numerous reports of vendors who were thinking about launching their properties this week, now holding off until February.  On the flip side of this though, we might see another flurry of investors selling their properties to cash in their equity and pay debt their owner occupied debt.  This will as a result put further pressure on rental prices.

Population growth and demand though is holding prices high and I believe will continue to do so.  Whilst we have high levels of immigration, it is highly unlikely we will see any sort of housing crash due to rising interest rates.

A couple of auction results from the weekend, one being 20 Fairy Street, Ivanhoe.  A property that sold well above reserve but one that was special and rare due to its location.  The property was located in one of the best streets in the area and in a very tightly held pocket.  The four bedrooms, two bathroom property was quoted at $2,800,000 – $2,900,000 prior to auction.  A large attendance at the auction with a number of bidders not putting up their hand.  Three bidders drove the price to $3,470,000 which sold approximately $500,000 above reserve.

A three bedroom townhouse in Port Melbourne was in demand with the well presented, three bedroom, two bathroom, one carport property attracting three bidders at its auction.  The property sold for $1,605,000 which was $105,000 above its reserve.

Have a great week!

Kim Easterbrook

Gold Coast Property Market Update

There is still plenty of activity at open for inspections for both houses and apartments on the Gold Coast. Unlike the southern states, the demand for apartments is high as there are many buyers looking to have an escape from the colder winters down south thus purchasing an apartment to enjoy the mild winters offered on the Gold Coast. Broadbeach to Burleigh Heads proving to be popular destinations.

Northern Gold Coast suburbs like Helensvale, Coomera, Pimpama, and Ormeau are expected to be the most sought-after in 2024 for houses. With a median house price of $1.08 million in Helensvale and an array of local amenities, such as Westfield Shopping Centre and excellent transportation links, these suburbs offer promising investment potential.

According to CoreLogic, Brisbane and Gold Coast property prices have had strong growth increasing by 3.8% for the September quarter.

The Gold Coast property market, which is closely intertwined with the local employment market, has had and will continue to have a significant impact on the Gold Coast housing supply. The growth of key industries such as tourism, hospitality, health care, construction, and the film industry has created numerous job opportunities, which in turn has driven demand for housing and influenced property prices.

Jenni Wright – Senior Buyer’s Agent (Gold Coast)

Hi ,

Melbourne’s auction clearance rate remained steady at 72% over the weekend which is a positive sign for the property market as it was a ‘Super Saturday’. 1,082 auctions were reported to the REIV with 555 properties selling at auction, 224 sold before auction and 303 passing in.  In addition, there were 178 private sales.  The same weekend last year produced a clearance rate of 72% on 480 auctions.

All signs are showing that the Melbourne housing market has turned the corner with multiple data tracking resources suggesting that Melbourne’s house prices marginally rose in September off the back of a small rise in August.  CoreLogic’s data is showing Melbourne’s property prices increased 0.4% in September and overall rose 1.3% for Q3 2023.  They have also suggested that Melbourne property prices have risen 4.3% since the property market bottomed out in December 2022.

This does not apply to all segments of the market with renovated houses leading the charge and apartments falling behind.  However, the averages are suggesting that we are back in a slow but steady rising market.  This will likely slow down temporarily after the predicted interest rate rise next week.  Historically, we experience a week or two of uncertainty until buyers get their head around the new interest rate and feel confident enough to buy. I have no doubt the start of November will likely be the same.

We are seeing more properties passing in at auction after active bidding.  This means that vendor’s reserves have not been met and they have to lower their expectations in post auctions negotiations in order to achieve a sale.

However, this was not the case at 18 Tennyson Street, Richmond which attracted strong competition at auction.  Renovated warehouse conversions are in very high demand and this property was no exception.  The three bedroom, three bathroom property was quoted for $2,550,000 – $2,700,000 prior to auction and selling for $430,000 over reserve for $3,130,000.

Have a great week!

Kim Easterbrook

Hi ,

Melbourne’s auction clearance rate dropped for the second week in a row to 72%.  This is the lowest clearance rate we have seen for quite some time.  381 properties sold at auction, 144 sold before, 3 sold after auction and there were an additional 115 private sales.

Whilst some vendor’s believe Spring can be the best time to sell, the increase in stock generally gives buyers more choice.  The next 10 weeks leading into Christmas should bring some better buying opportunities for property buyers.  Both vendors and selling agents are usually very keen to sell their properties before Christmas Day which is a deadline that can work in buyers favour.

A predicted interest rate rise may also temporarily add a little bit of uncertainty into the property market.  History has shown us that with every interest rate rise, there is a week or two of increased uncertainty until buyers become accustomed to the new interest rate.  We have all known another rise was highly likely before the New Year so this should not be shock to anyone.

The Melbourne Property Market does feel similar to the Spring season last year where the conditions eased and there were more buying opportunities.  If history repeats itself though, the Christmas break will be a good reset for buyers who came out in force in February.

Have a great week!

Kim Easterbrook

Geelong Property Market Update

Stock levels for houses in the $700,000 to $1,000,000 are low and there is a continuation of a strong buyer pool for these homes with competition pushing prices beyond current market values.

KPMG chief economist Brendan Rynne has predicted that Geelong will have three new $1m by 2025 being Geelong, Geelong West and Highton.  He believes the increase in demand will drive this as a result of increased migration, predicted interest rate cuts in 2025, lending conditions may ease, renters being pushed out of the rental market (due to increased rents and lack of supply) and demand from overseas investors.

Geelong is still seeing an increase in Melburnians moving to the area due to lower priced housing and flexible working arrangements being able to work from home a few days a week.  This migration will likely to continue well into the future.

7 Janmar Court, Grovedale is a modern, three bedroom, two bathroom home that was recently listed for sale at $769,000 to $799,000.  The property sold after one open for inspection and multiple buyers seeking to secure the home.

Another property that sold quickly was 7 Victoria Terrace, Belmont.  The 3 bedroom 1 bathroom home on 558 sqm was quoted for $900,000 to $950,000 prior to auction and sold for $1,060,000.

Vicky Whittaker – Senior Buyer’s Agent (Geelong and Regional Victoria)

Hi ,

The Melbourne auction clearance rate dropped slightly to 74% over the weekend with 638 auctions being held across the city.  355 sold at auction, 116 sold before auction, 1 sold after auction and 166 passed in (83 of those on a vendor bid).  In comparison, the same time last year there were 602 auctions held resulting in a clearance rate of 71 percent.

The REIV has released its September quarter 2023 median prices and it shows that for the first time since the June 2021 quarter, houses and units across Melbourne (being inner, middle and outer rings) all recorded growth.  In regional Victoria, both houses and units remained stable and recorded no quarterly change.  Statewide, the median house prices were up 1.3 percent and units up 1.8 percent.

This data confirms what we are seeing on the ground with active bidding at most auctions we are attending.  Renovated houses are still performing well but we are getting a sense that the demand for unrenovated properties is on the rise again.  Villa units are a very strong segment of the market with high demand for properties with a little bit of land.  Apartments are still suffering from the Covid hangover but from a rental point of view are in high demand from tenants as the supply continues to dwindle due to landlords selling.

My team attended many active auctions on the weekend including 3C Manuka St, Bentleigh East which was quoted at $1,100,000 to $1,200,000 prior to auction.  The property is a modern four bedroom, two bathroom townhouse but located a long way from public transport and a shopping strip.  It demonstrates that some buyers will put space and condition above location when selecting a property.  The auction attracted five bidders and the property sold for $1,385,000 on a reserve of $1,100,000.

22 Banool Road, Surrey Hills was also a popular property and attracted very active bidding at the auction.  The well presented four bedroom, two bathroom home was quoted at $1,900,000 to $2,090,000 prior to auction.  The property was announced on the market at $2,000,000 in front of a huge crowd of almost 150 people.  Six bidders in total pushed the selling price to $2,405,000.

Have a great week!

Kim Easterbrook

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