A clearance rate of 77 per cent was recorded in Melbourne this weekend. There were 614 auctions held on the weekend with 472 properties selling and 142 being passed in, 65 of those on a vendor bid. There were an additional 384 private sales reported.
It was quality apartments that dominated the Auction market on Saturday, with demand and sale prices achieving higher than expected results.
With the average time on the market being 32 days in May, and reports of winter auction listings being 20 per cent higher than in 2014, there are clear indications that the Melbourne property market is still enjoying better results than by the same time last year.
Median house prices at auctions in Melbourne grew by 5.2 per cent in the June 2015 quarter to $706,000 from $671,000 (from the March quarter). This is up from the same period last year and given the higher clearance rates, shows an impressive upward trend in the Melbourne market.
Next week there are over 700 auctions expected in Melbourne.
Auction Results
15 Fitzroy Street, McKinnon. Sold for $1,230,000
Owned by the one family for 70 years, this classic 3-bedroom Art Deco home in the sought after McKinnon Secondary College Zone provides a great opportunity for development. A price guide of $1 million+ for this 770 square-metre property was not enough to attract much action from the 80 strong crowd. One man, who had no intention of purchasing, offered the only bid of $1.01 million, and when no other competition stepped up, the property was passed in. Further negotiations between vendors and the man saw it sold for $1.23 million.
5 Whalley Street, Northcote. Sold for $1,421,000
A contemporary home with three bedrooms and two bathrooms welcomed over 40 people to the auction. Quoted prior to auction between $1.15M – $1.25M, a strong opening bid of $1.28M started the proceedings. In rises of $10K, the price reached $1.33M and came to a standstill when the auctioneer announced it was time for the half-time break. The bidding again resumed and at $1.35M the property was announced as on the market. When the price reached just $1.405M it looked to be won and done, but a last minute bidder came in, and with rises of $1K won the property at $1.421M.
51 Darling Street, Moonee Ponds. Sold for $910,000.
A cute 3 bedroom Victorian with an asking price of $790,000 – $865,000 had a good sized crowd of about 50 attendees at the auction on Saturday. One man offered $800,000 to start the auction, and the person standing next to him countered swiftly with $810,000. It was a close battle between these two bidders who continued on, and when the house was announced on the market at $900,000 the second bidder took the price up only $1000 more. But it was the first man who took the keys by offering a $9,000 rise and bringing the hammer down on the price of $910,000.
A clearance rate of 77 per cent was recorded in Melbourne this weekend. There were 507 auctions held on the weekend with 392 properties selling and 115 being passed in, 45 of those on a vendor bid. There were an additional 375 private sales reported.
The slightly lower clearance rate experienced this weekend in Melbourne is normal for the winter school holiday period when the cool weather seems to slow down sales. However, it is often a very motivated vendor who sells in winter – those that have already purchased a property and need to move on can present a great opportunity for buyers.
Melbourne’s house values grew 11.2 per cent in the past financial year, and apartments achieved 2.4 per cent growth. A new report published by the Valuer-General Victoria has listed Melbourne’s best performing suburbs for long-term price growth. Altona North is the best performing suburb for units, and Balwyn for house price growth in the last 10 year period.
The number of auctions is expected to increase over the next couple of weeks with approximately 750 auctions due to be held in each of the next two weekends.
Auction Results
77 Heath Street, Port Melbourne. Sold for $1,640,000
With 3 bedrooms, 2 bathrooms this beautiful double-front Victorian home, quoted prior to auction at $1.4 million+, attracted a large crowd with several bidders amongst them. The auction began with a hefty $1.5 million bid, which was quickly responded to by a woman with a $10,000 rise. A third contender jumped in with a $1.52 million bid, and continued to out-bid every other offer until a late entrant joined in at $1.62 million. The property was announced on the market at $1.61 million and sold shortly after to a couple for $60,000 above the reserve.
32 Corsair Street, Richmond. Sold for $1,240,000
Appealing to both investors and owner occupiers who would enjoy this renovated home with three equal-sized bedrooms and one bathroom. A crowd of around 70 people watched 6 bidders (mainly young couples) and plenty more that didn’t put their hands up, battle it out to secure this Richmond property. Originally quoted mid $900,000’s at the start of the campaign, this price guide was increased after the first open for inspection due to the numbers of interested parties viewing. The property with a south facing rear and no parking, was announced on the market at $1,020,000 and sold for $1,240,000 – showing that buyers are willing to make compromises for location.
52 Albion Road, Box Hill. Sold for $1,625,000
Marketed as a great development opportunity with dual street frontage on approximately 847 square metres of prime land. The price guide for this site, currently with two separate houses on the single title of land was $1.4 million+, which is well above the $1.05 million suburb median. There were four bidders who helped push the property beyond expectations, when the hammer was finally brought down for $1,625,000, which is equal to $1,918 per square metre.
This weekend there was an auction clearance rate of 77 per cent in Melbourne. There were 508 auctions held on the weekend with 392 properties selling and 116 being passed in, 50 of those on a vendor bid. There were an additional 443 private sales reported.
Fewer auctions were held on the weekend, and the clearance rate was slightly lower as well. There were around 2,300 auction sales in June 2015 compared to 2,100 over the same period last year, so it will be interesting to see how July compares. Agents are suggesting that August and September will be very busy months, with the 8th of the 8th tipped to be one of the busiest.
Demand for houses remains very strong, while units are on average remaining on the market for longer. This is partly due to the larger supply of apartments available, and fewer 3 or 4 bedroom family homes. Our team typically sees 4 or more bidders at house auctions, suggesting that buyer demand remains heated.
Next weekend there will be a similar amount of properties auctioned – with approximately 524 auctions scheduled.
Auction Results
19 Lingwell Road, Hawthorn East. Sold for $1,400,000
A free-standing Edwardian 2 bedroom cottage with a quote prior to auction of $1.1 million+ had a crowd of 60 packed inside to escape the rain during the auction on Saturday. Five bidders raised their hands with offers to purchase, and it came down to the wire with a downsizing pair against a family. It was the couple who won with a final $1.4 million bid, and surprisingly this was the first time they had seen the property. The vendors had purchased this home 14 years ago for $417,000, now making almost $1 million on their investment.
9 Malua Street, Ormond. Sold for $2,618,500
This exquisitely detailed 4 bedroom Victorian mansion is undeniably one of, if not THE grandest residence in the coveted McKinnon College Secondary zone. Built in the 1880s, and last renovated in 1980, this property had a quote prior to auction of $2.5 million+ and had two very keen bidders from families interested in purchasing.The property was on the market at $2,585,000, after which a late entrant jumped in to the bidding pool, but it was the first bidder, a local buyer, who held the highest bid of $2,618,500.
159 Wattletree Road, Malvern. Sold for $2,140,000.
A solid brick 4 bedroom Victorian home in meticulously maintained grounds was the setting for a fast-paced auction on Saturday where over 80 bids were placed. Despite the rain the auctioneer managed to keep track of the bids, starting only after he placed a vendor bid of $1 million. It was on the market at $1,325,000, when more bidders joined in, but it was a man taking instructions over his phone, who placed the winning bid of $2.14 million – which was more than $800,000 above the reserve.
Saturday’s auction market was again strong in Melbourne with a clearance rate of 79 per cent. There were 782 auctions over the weekend with 621 properties selling and 161 being passed in, 62 of those on a vendor bid. There were an additional 378 private sales reported.
Auction sales have continued to track higher with around 14,000 sales so far this year, the most auctions Melbourne has seen. This trend has spread further afield, with outer areas of Melbourne experiencing a 20 per cent increase in auction sales compared to the same time last year.
During winter, there have been fewer properties on the market and some buyers are finding conditions tough, with some auctions producing results well above the reserve price. Buyers who have been outbid at earlier auctions, are increasing their budgets which has in turn, boosted this year’s higher clearance rates, particularly in the inner suburbs.
The March quarter price index results showed that Melbourne property prices grew by 0.6 per cent, down from 1.3 per cent in the previous quarter. While Melbourne’s average rents rose 2.3 per cent, which was the slowest pace in a year. The slow rental growth may be contributing to concerns that Melbourne’s property boom is coming to an end, but investors are still attracted to the tax breaks in the form of negative gearing and discounted capital gains tax. Investors are still enjoying Melbourne’s very low vacancy rate, at 2.3 per cent.
Auction Results
5/35 Winter Street, Malvern. Sold for $672,000
There were around thirty shivering attendees standing on the aptly named Winter Street at 10.30am Saturday, some tightly gripping their take-away coffees absorbing every ounce of heat emitted. This two bedroom first floor apartment in a block of only seven is in a prime location less than a kilometre from Malvern train station and far closer to the shops, cafes and restaurants of Glenferrie Road. The bell rang and the auction began with a Vendor bid of $550,000 when no one offered a place to start, slowly two bidders emerged bringing the property over $630K where it was announced on the market. More bidders joined in the action bringing it quickly to it’s final position of $672,000.
1 Egan Street, Richmond. Sold for $2,005,000
In a coveted location, occupying an extraordinarily deep block of land, this freestanding balconied terrace with opportunity to renovate or develop, had a price guide of $1.3 million – $1.4 million. A big crowd of 120 onlookers watched the bidding take off after an opening offer of $1.5 million placed the property immediately on the market. Six parties battled it out for 25 minutes, but it was four local buyers keen to upsize from their Richmond homes, who dominated the bidding.The final offer of $2,005,000 from one family helped win the auction at more than $500,000 above the reserve.
61 Cardorna Street, Box Hill South. Sold for $1,155,500
This concrete and brick two bedroom post-war house with opportunities for renovation, extension or redevelopment, on approximately 750sqm elevated allotment had a price guide of $750,000 – $820,000. It’s versatile floor-plan includes a theatre room with french doors opening out to a back terrace, and a trap-door to an underfloor cellar-room beneath the master-bedroom. Over 100 people watched as the opening Vendor bid of $800,000 started the auction of this property with views to Deakin University and surrounding parkland. Five bidders became involved, and the home was announced on the market at $1,010,000, before selling at $1,155,500.
A clearance rate of 79 per cent was recorded this weekend in Melbourne. There were 867 auctions over the weekend with 687 properties selling and 180 being passed in, 89 of those on a vendor bid. There were an additional 469 private sales reported.
Competition is heating up for buyers hoping to purchase before the stock levels reduce even further throughout winter. We currently have the lowest interest rates since the mid-1960s, something that is being harnessed by the investor market.
Results over the past few weeks are indicating that prices are strengthening substantially in the outer and middle-ring suburbs due to the ripple effect of buyers spreading to adjoining lower-priced suburbs. Areas like Hampton, Brighton East and Sandringham have been in high demand when Brighton property is out of buyers price range; similarly, Box Hill North has become a hot spot due to the popularity of Surrey Hills.
It will be interesting to see what the Australian Tax Office investigation into foreign buyers illegally purchasing Victorian property will uncover. So far there are only 93 possible breaches being investigated, however we believe the figure could be much higher.
Next week there are 823 auctions scheduled.
Auction Results
9/41 Rockley Road, South Yarra. Sold for $780,000
Located in one of South Yarra’s best tree-lined streets, this supremely spacious two bedroom apartment with glimpses of the city skyline from its north-facing balcony and a car park and storage unit ensured this apartment would be highly sought after. Over 70 people attended this well-maintained building, and the auction opened with a bid of $650,000. Three bidders aggressively pushed the price past the “selling” price of $745,000, until it was eventually sold for $780,000. Apartment 10, a single bedroom unit at the rear of the bulding was also auctioned. This property attracted four bidders opening at $440,000, on the market at $500,000 and sold for $535,000.
27 & 27A Macfarlan Street, South Yarra. Sold for $2,000,000
Two identical side by side homes were auctioned off together on Saturday, hoping to draw a developer or someone with a keen eye to spot this diamond in the rough. These homes are mirror images of each other and both would require hours of painstaking labour to bring them back to life. Advertised at the low $1M’s there was a large amount of interest with around 70 contracts going out to potential purchasers. The opening bid brought the properties on the market by $200,000 and a flurry of bidding saw this property reach its final price of $2,000,000 to a couple who plans on rebuilding themselves.
10 Frederic Drive, Ringwood. Sold for $780,000
A partly updated 5 bedroom home in a family neighbourhood of Ringwood attracted a large crowd of onlookers with well over 60 people attending. Located close to schools and parks but still within striking range of Eastland shopping centre and Ringwood train-station, it appeared very appealing to many of the hopeful home-owners. Quoted prior to auction at “more than $610,000”, the auctioneer thought this would be a good place to start things off with a vendor bid when no-one from the audience would raise their hands. The crowd eventually remembered that audience participation was in fact required as a gentleman placed a $90,000 bid to bring the property on the market at $700,000. A rapid fire back and forth of $10K rises and then $5Ks brought the property well over reserve to $780,000 where it was sold.
Melbourne’s auction market has bounced back after the Queen’s birthday long weekend, with a clearance rate of 80 per cent. There were 781 auctions this weekend with 624 properties selling and 157 being passed in, 67 of those on a vendor bid. There were an additional 409 private sales reported.
Housing affordability has been a hot topic in Melbourne for the past couple of weeks, but it hasn’t deterred buyers. The winter months are typically the time of year when less properties are on the market, with less buyers, however this year the competition is still quite strong, especially in the middle-ring suburbs.
The higher clearance rates we’ve been seeing this year indicates how challenging it is for buyers, but there are still many areas of Melbourne that offer good value in this rising price climate.
Next weekend approximately 870 auctions are expected to be held in Melbourne.
Auction Results
39 Lambeth Avenue, Armadale. Sold for $4,660,000
The location of this designer-renovated Victorian home, between High St and Glenferrie Rd retail and restaurant precincts, Union St Park and great schools was not the only attraction of this property. Quoted prior to auction at $3.5 million+ for four stunning bedrooms, high ceilings and a picturesque courtyard, it attracted 300 onlookers to the auction. Bidding opened at $3 million, with an immediate rise of $500,000. Four people competed with rises of $100,000, until a fifth bidder jumped in at $4.47 million. The eventual purchaser outbid her last rival after the offers had dwindled down to $10,000 increments.
14 Duckham Street, Blackburn. Sold for $1,702,500
14 Duckham Street drew in a substantial crowd of around 200 people on a sunny Saturday afternoon. A four bedroom house with a beautiful facade and traditional floor plan in the Box Hill Secondary school zone had many reasons to consider it. On an allotment of over 700SQM there is the possibility of future development despite the South facing rear. The auction started with a bid of $1.2M which was quickly pushed higher by two other bidders jumping in and announced on the market at $1,470,000. It eventually slowed to $1,000 increments and a young couple desperate to do everything they could to win put their last $250 in, only to be immediately countered with $250 straight back.
93 O’Grady Street, Clifton Hill. Sold for $1,730,000
This two-bedroom 1880s terrace has been meticulously renovated and includes a stunning multi-purpose studio, ideal as a home office or 3rd bedroom. With a quote of $1.25 million to $1.375 million provided a good guide for bidders, as the opening offer came from a man wearing thongs, at $1.4 million. Another couple joined in until they bowed out of the running at $1,605,000 to be replaced by another man. The man wearing thongs had a heated discussion on his mobile phone to see if he could continue bidding, and once given the go-ahead by the mystery caller he eventually won the keys to the property for $1.73 million, nearly $300,000 above reserve.
Melbourne’s clearance rate for the final weekend in May has again defied expectations, with another strong result of 81 per cent. There were 1,048 auctions this weekend with 854 properties selling and 194 being passed in, 100 of those on a vendor bid. There were an additional 464 private sales reported.
This year’s results in the Melbourne property market are showing signs of price growth between 5 and 7 per cent this year. This could mean that house prices in this city are on track to rise by 25 per cent between 2013 and the end of 2015.
On the weekend, many properties were sold above their reserve, particularly in the highly sought after suburbs of the Bayside region and also the Inner East. So what is motivating buyers to purchase above the reserve? In some cases it’s just the location. Buyers are willing to pay top dollar to invest in a good location, quite often choosing to knock-down and rebuild.
The cash rate reduction by the Reserve Bank in early May has attracted many new buyers to the market. This can be seen in normally price-senstive areas such as Melbourne’s Western suburbs. Tenants are starting to realise that mortgage payments could be on par with their rental payments, and therefore they might be able to afford their own home in the outer suburbs of Melbourne.
With the long weekend coming up, there will only be 221 auctions held in Melbourne next weekend.
Auction Results
15a Renmark Court, Vermont South. Sold for $777,000
A good crowd of approximately 40 people attended the auction of this 10 year old, three bedroom townhouse in a quiet, leafy residential street. Spacious living areas, close proximity to schools and leisure activities and having no owners corporation were all attractive to the five bidders within the crowd. The auction started with a $630,000 vendor bid and slowly began to make its way to $758,000 where it was announced as being on the market. With some coaching from the auctioneer, two parties fought it out to the end and the hammer was brought down at $777,000 to a very relieved family, and the strongest bidder of the afternoon.
8 Cremin Close, Kew. Sold for $1,670,000
In a quiet cul-de-sac location, this 2-storey family home quoted between $1.1 million to $1.3 million prior to auction, attracted a crowd of 80 people to view the action. A vendor bid of $1,250,000 started the auction of this 4 bedroom home, but with 2 international bidders offering $50,000 rises, it didn’t take long to zoom past the reserve of $1.4 million, and eventually reach their limit of $1.65 million. 3 more international parties jumped in, offering $5000 rises, and one party only offered a single bid of $5000 more, and walked away with the keys for $1.67 million. This was a staggering result considered that an identical property across the street, with a slightly different renovation, sold a few months ago for $1.18 million.
33 Barkly Street, Brunswick East. Sold for $1,450,000
Quoted at $1.05 million+ this unique two-in-one property with a classic Californian bungalow at the front and a separate three-room unit at the back, held some fierce competition from nine parties at the auction. To begin proceedings, a vendor bid of $980,000 was hardly necessary, as it was immediately responded to within seconds. The property reached its reserve of $1.08 million, with several groups still not even entered into the bidding. One couple joined in at $1,365,000, and another late bidder was unsuccessful at outbidding them, as the hammer was brought down at $1.45 million – $370,000 above the reserve.
This week’s clearance rate was a new high for Melbourne so far in 2015’s auction results. A jump of 5 per cent from last weekend’s results saw the final clearance rate land on 82 per cent across Melbourne. There were 940 auctions this weekend with 775 properties selling and 165 being passed in, 79 of those on a vendor bid. There were an additional 473 private sales reported.
While Melbourne’s east is still in the highest demand with buyers – it is clear that Melbourne is experiencing a spread of the boom sales conditions that were previously centred on the eastern suburbs. In this current climate, it’s not unusual to see that a home in Caroline Springs sold for $1.59 million, where the average median house is $456,000, as the demand for houses between $1 million and $4 million was upbeat on the weekend.
There has been talk in the media recently about Melbourne showing signs of being in a housing bubble due to the price growth and auction clearance rates over the past few years. This continues to be a contentious discussion point, and with lower interest rates, the scene is set for continued growth in property values and sales. We should remember that as winter is closing in, there is expected to be less properties around, so the next month or so will be a good test of the market.
Auction Results
11 Hawson Avenue, Glen Huntly. Sold for $1,710,000
This beautifully renovated Californian Bungalow drew an enourmous crowd of over 200 people to Glen Huntly to catch the auction on Sunday. As it was quoted prior to auction at $1,180,000 – $1,280,000, there were gasps from the crowd when a strong opening bid of $1.4M was put forward. This was no surprise to those who were there to bid as the property was soon on the market at $1.5M. There were 5 unique bidders at this auction pushing the price to $1,710,000 where it was sold. This was an extremely strong result for Glen Huntly, as the last family home sold on this street was $1.2M in December of 2014.
39 Henry Street, Northcote. Sold for $975,000
This superbly located home tucked neatly into a quiet street of single story period houses in the popular Ruckers Hill precinct, whilst being close to the Westgarth Village as well as High Street Cafes and public transport. This contemporary single fronted double storey, 3 bedroom house galloped off from a start of $800,000 to achieve an over the odds result. It was declared on the market at $830,000, and 2 bidders in a crowd of approximately 30 onlookers raced to the finish of $975,000 in 39 bids.
82 Maud Street, Balwyn. Sold for $3,083,000
This large 933SQM original clinker brick home on a corner block in the Balwyn High School zone attracted a lot of attention over the weekend. In original internal condition, it was touted as a site to develop or build a new luxury home in the highly sought after zone. 6 bidders managed to raise their hand before the auction raced away, and applause came from onlookers as the price broached the $3 million threshold. The home eventually sold well in excess of the $2.2M reserve at $3,083,000.
There’s a secret to getting a house in one of Melbourne’s up-market suburbs.
Find our very own Kim Easterbrook commenting on ‘hidden gems’ in the Herald Sun here.
With fewer properties going under the hammer this weekend buyer demand is still strong, as evidenced by the clearance rate of 76 per cent. There were 823 auctions this weekend with 629 properties selling and 194 being passed in, 83 of those on a vendor bid. There were an additional 425 private sales reported.
Some hot competition for quality properties was seen on Saturday with hundreds of auctions experiencing three or more bidders. Demand in Melbourne’s inner and middle-ring suburbs is particularly strong.
The recent interest rate cut may be spurring on a higher level of buyer presence and activity in the market – especially with “lifestyle buyers” such as downsizers and first-home buyers.
The first-home buyer segment of the market are feeling the heat from downsizers when it comes to finding properties in close proximity to the city. Kim Easterbrook, in The Herald Sun on Saturday explains that buyers were settling for “stepping stone” first properties close to transport, which would prove good investments down the track.
According to Core Logic RP Data, the growth in house prices in Melbourne in the year to March was around 6 per cent, and double-digit growth is highly likely in 2015 for the inner suburbs. There is no doubt that these results have an affect on buyers wanting to secure a property at an affordable price.
The highest sale price recorded this weekend for a house was for Banyule Homestead in Heidelberg, which fetched $5,200,000.
Auction Results
1/50 Gold Street, Brunswick. Sold for $512,000
This centrally located boutique 2 bedroom apartment in a block of only 8, drew around 30 people to its auction. Quoted before auction with a range of $440,000 – $480,000 this beautifully renovated apartment, only a short walk from Sydney Rd trams and shops, appeared to be an ideal purchase for a first home buyer or young professional looking for a city lifestyle. The bidding opened at $450,000 and was quickly pushed up $10,000 by a second bidder. After some rapid back and forth bidding, the auction ended at $512,000 won by the original party.
16 Panoramic Grove, Glen Waverley. Sold for $2,178,000
A three bedroom home bursting with potential for developers to take advantage of. This attracted a huge crowd of more than 150 people to the auction. Located in the highly sought-after Glen Waverley school zone, and a guide price of $1.5million+ this property had no less than eight bidders. All of them developers, putting their hands up during the 25 minute auction where 56 bids were placed. The price soared more than $500,000 above the reserve when the hammer was brought down. The final bid was delivered by a local developer, who only made a single bid of $1000 to secure the property. The final result was one of the highest prices per square-metre for the suburb.
29 Buckingham Avenue, Bentleigh. Sold for $1,123,000
A large crowd of over 50 people watched this three bedroom townhouse go under the hammer. Being in the very highly sought after McKinnon Secondary school zone, a high level of competition was expected. This was shown by a very strong opening bid of $950,000 and the pace at which it moved with quick $10,000 rises to $1.05 million. With a slight change of speed, the auction slowed down to a crawl and announced by the auctioneer as ‘the most boring auction of the day’. It was eventually won for $1,123,000
