Hi,

What a difference a day can make, one day the State Government was announcing no Covid-19 cases then the next day we are in lockdown.  There were over 1,000 auctions scheduled for the weekend however 701 have been reported to the REIV as being postponed.  Of the 397 auctions that were to be held online, 267 sold at auction, 92 sold before auction and 38 passed in resulting in a clearance rate of 90%.  In addition, there were 149 private sales.

It seems that 2021 is the year of in and out of lockdown.  The real estate industry has adapted very well however there is still only a certain amount that can be done under the tight restrictions.  Auctions can easily be converted to online however onsite inspections of properties are not allowed.  This basically puts the industry into a holding pattern until restrictions ease.

Lockdown aside, there were some very strong auction results over the weekend with some properties selling hundreds of thousands of dollars above the vendor’s reserve. 4 Hamilton St, Seddon was quoted $1,200,000 to $1,300,000 prior to auction and is a three bedroom, two bathroom, single fronted period home on 322 sqm.  The property whilst updated, did not have a great floor plan and could have done with some additional works to lift it to its full potential.  The property sold for $1,567,500 which was $276,500 above the vendor’s reserve.

8 Grange Road, Sandringham was also another popular property.  The property was quoted $1,690,000 to $1,790,000 prior to auction and is an entry level, family home for the area with four bedrooms, two bathrooms in very liveable condition on 356 sqm of land.  The property had reached the vendor’s reserve after a strong opening bid of $1,900,000 which knocked out some participants immediately.  There were an additional two bidders above this level with the property selling for $2,155,000.

Have a great week.

Kim Easterbrook

Hi,

The second week of lockdown didn’t deter hundreds of vendors moving their onsite auctions to online with 443 auctions reported to the REIV.  This was down on the previous week but up on the same time last year which only produced 293 auctions. Another high clearance rate of 94% was achieved however 527 auctions were postponed so it is not a true reflection of what the market would have produced had lockdown not occurred.  Of the 443 auctions, 418 sold (with 202 of these selling before auction and 216 sold at auction), 155 were withdrawn and there were an additional 190 private sales.

With promising signs that lockdown will cease tomorrow night, the state government has given a stern warning that restrictions will be in place for quite some time to come. Whilst we may be able to inspect properties again, it is likely these will either be private inspections with capped numbers and auctions will again be either outdoor only with limited numbers or still online.  Hopefully we will hear an announcement today.

The auction of 21 Aberdeen Grove, Northcote was scheduled to go to auction last Saturday but was brought forward due to an ‘acceptable’ offer being received.  The property had been quoted $1,400,000 to $1,500,000 prior to auction with an offer well above this range triggering the property to sell before auction.  Three additional buyers were wanting to challenge the offer so a zoom auction was then scheduled.  The auction ended up with four bidders in total and sold well above its reserve price for $1,811,000.

Have a great week.

Kim Easterbrook

Happy New Year and welcome to the 2019 series of Elite’s Melbourne Property Market Updates.  We are really looking forward to a great year.

The start of 2019 has been nothing short of positive for Melbourne’s Property Market.  Not only we, at Elite, have had an increase in enquiry from buyers but many buyers who were sitting on their hands last year, are now coming forward and are ready to buy.  We speak to other buyers advocates and selling agents regularly and they are reporting the same sentiment.  Selling agents are seeing higher volumes of groups through open for inspections.  Interestingly, some properties that had passed in last year and were getting no one through their opens, are now getting numbers in excess of 10 in some of their open for inspections.  Maybe the Christmas break was the market reset we needed to have.  Have we seen the worst?  Well we quite possibly have.

Sales volumes were reasonable last week with 184 selling under auctions conditions and 695 private sales.  The 9th of February will see an increase of auctions numbers with the 23rd of this month being the biggest auction weekend thus far this year.

So is it a good time to buy in 2019?  A question we are asked on a daily basis.  One thing to note when buying property for investment, its important to focus on time in the market, not timing the market.  No one can ever predict the peak or the bottom, in fact, we actually don’t know the bottom has hit us until six months after the event.  At that point, its too late and the market has started to creep back up.  What we do need to focus on though is population growth (demand) and stock levels (supply).  While Melbourne’s population keeps growing at the rate it does, it is highly unlikely we are going to see any sharp falls.  In fact, the property market last year copped a belting from the media and also many buyers were being restricted in their borrowing capacity.  With so much negativity thrown at the market, it still remained quite resilient.

The start of 2019 so far has shown a much more positive mindset for buyers with property but we are keen to see whether vendors are prepared to take the jump and put their properties on the market, or are they going to wait?  The wait is what could cause us back into a shortage of stock which in turn will likely see property prices stabilise and infact could increase in value.

If you have any questions in relation to the property market you would like answered, or if you would like a free property portfolio review, please do not hesitate to contact David Easterbrook (david@elitebuyeragents.com.au) or myself (kim@elitebuyeragents.com.au).

Have a wonderful week!

Kim Easterbrook and the team at Elite!


Clearance Rates
Melbourne

2nd and 3rd February 2019
This week: 283 Auctions

Clearance: 65%

Last Year: 75% [source: REIV]


#BuyersAdvocatesMelbourne#BuyersAgentMelbourne#EliteBuyerAgents#Melbournebuyeradvocates#Melbournebuyeragents#Melbournepropertymarket#MelbProperty#MelbRE#MelbRealEstate#PropertyMarketWrap

As the Spring auction season reaches its final weekend, a clearance rate of 78 per cent was achieved from 1238 auctions reported. There were 964 selling and 274 being passed in, 129 of those on a vendor bid. In addition to the auctions, there were also 301 private sales reported.

With plenty of stock on offer this weekend, Melbourne vendors faced tough competition while buyers were spoiled for choice. This was the second-highest number of homes being auctioned across the city, behind the 1598 auctions held on the pre-Easter super Saturday on 19th March.

The median auction price recorded in Melbourne this weekend was $856,000, just below the $860,000 reported the previous weekend, but 13.4 per cent higher than the $755,000 recorded over the same weekend last year.

Melbourne’s auction market looks set to be busy over the next 4 weeks in the lead up to Christmas, with an expected 3,000 homes to be auctioned.


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151 Power Street, Hawthorn.  Sold for $1,976,000.

This lovely freestanding four bedroom Victorian terrace positioned on approximately 407m2 attracted three bidders among the crowd on Saturday. Fast bidding with $1,000 increments took this two storey property higher than the 1.91 million reserve. The hammer was brought down at $1.976 million to a semi-retired couple who plan to move in to the property set in lush gardens.


26 George Street, St Albans

26 George Street, St Albans.  Sold for $630,000.

The price guide of $600k plus helped attract quite a crowd to the auction for this unrenovated four-bedroom home which was built by the vendors approximately 50 years ago. Five bidders threw their hands up to become the new owners of the property situated on approximately 785 square metres of land. But it was an investor who won the keys for $630,000.


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23 Beach Road, Beaumaris.  Sold for $1,740,000.

With a price guide of $1.6 million – $1.7 million, this was an affordable four bedroom home with views of the bay. In front of a crowd of 50 people, the auctioneer found three bidders vying for the opportunity to live within a stone throw of the water. The home which has been with the one family for 30 years, sold to a family who plan to rent it out for a couple of years before moving in when their children leave school.

Derby Day weekend is usually a bit more quiet on the auction front, than the previous weekends in Melbourne. There were 455 auctions reported, with 364 selling and 91 being passed in, 39 of those on a vendor bid. In addition to the auctions, there were also 347 private sales reported.

The leading clearance rate suburbs at present are Bentleigh East and Hawthorn. The two suburbs delivered a 100 per cent clearance rate from 16 auctions last week.

The property market has continued to deliver clearance rates in the 80%’s and demand for quality property continues to be strong.  It could be argued that there are more properties being sold under pass in conditions rather than under the hammer due to vendor’s expectations at times are high and buyers currently have more choice.

An interesting property hit the market this week being the penthouse of the Eureka Tower. The property sits on the 86th floor and has 360 degree views of the city.  The high end “New York style” fitout has been listed with a hefty price guide of $22m.  This however would not make it the most expensive apartment sold in Australia which was $25m for the penthouse of Melbourne’s planned tallest skyscraper, Australia 108 which sold off the plan last year.


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13 Gwendoline Avenue, Bentleigh sold $1,902,000

This renovated 4 bedroom, 2.5 bathroom California Bungalow in a good position of Bentleigh was auctioned on the weekend in front of a large crowd.  The numbers didn’t reflect the bidding with only one party participating resulting in the property passing in.  It was evident there were buyers in the crowd but the lack of bidding could be a result of a wider selection of properties on the market. The property passed in on a vendor’s bid of $1,775,000 but sold immediately after for $1,902,000.


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90 Suffolk Street, Maidstone sold for $1,351,000

This 818 square metre property was the choice for developers. Six developers competed to become the new owners of this Maidstone property located in this ever appreciating pocket of Maidstone close to all local amenities such as Highpoint Shopping Centre, Central West Plaza and public transport.So it was a developer who won the auction with a $1.351 million bid, and they hope to put townhouses on the site.


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18 Philip Street, Vermont sold for $952,000

Located in the prized Vermont educational catchment area and only a short walk to cafes, buses and Bellbird Dell, this three bedroom family home fetched $952,000 under the hammer on Saturday. The auction began with an $800,000 vendor bid, and three young families stepped up with offers. The vendors received quite a pay day considering that they purchased this property in 2007 for $162,000.

In Melbourne there were 666 auctions held, with a clearance rate of 75 per cent recorded, compared to 69 per cent last week, and 76 per cent this weekend last year. Of the auctions held, 497 sold and 196 were passed in, 83 of those on a vendor bid. In addition to the auctions held, there were also 365 private sales.

With constrained housing stock levels, family buyers had to dig deep to purchase larger homes on the weekend. Four-bedroom houses, or properties on larger land allotments sold for premium prices with hefty competition.

Buyers who are still looking will be relieved to know that more stock will be pouring onto the market in the coming weeks, as school holidays finish and as we near the uninterrupted run of auction dates after Anzac Day on April 25.

Next week there will be 765 properties going under the hammer.

Auction Results

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4 Gracehill Avenue, Burwood. Sold for $652,000 This charming property is more like a small house than a unit. On offer a two-bedroom unit with its own street frontage, no shared driveway and a large landscaped rear garden plus deck, located in the Mount Waverley High School Zone. 30 people watched as the opening bid of $500,000 was soon followed up by a question from the crowd asking if the property was on the market yet. Too soon to tell, the auctioneer then received two bids at the exact same time for $520,000, then $20,000 rises to $560,000, then the first bidder offered $10,000 rises and this continued back and forth up to $590,000. At the half time break, the auctioneer hints that $600,000 will put it on the market, and the rises slowed to $5,000, $2,000 and $1,000 until a 4th bidder takes the price to $600,000 and on the market. A 5th bidder joins in with $5,000 rises against the 4th bidder until $625,000, when the hammer was finally brought down to the 5th bidder.

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2/26 Loch Street, St Kilda West. Sold for $760,000 This large, two bedroom apartment with under cover car parking was sold on Saturday in a fiercely contested auction. The property is currently tenanted which appealed to the almost all investor crowd. Located amongst multi million dollar homes, the updated property is currently tenanted which appealed to the almost all investor crowd. The property was announced on the market at $680,000, but the bidding did not stop there. Two parties went head to head until the property eventually sold for $760,000.

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179 Hawke Street, West Melbourne. Sold for $885,000 This part-renovated two bedroom Victorian cottage on the edge of the city will soon become a park-front terrace, as the auctioneer announced that the City of Melbourne council had just bought the run-down factory across the road to create a new recreation area and playground. A crowd of about 50 people including a mix of young families and investors attended the auction. Bidding began at $770,000 and the price steadily grew in $10,000 increments until $860,000, when things slowed down. The auctioneer managed to entice the bidders to continue until the property was sold to the opening bidding couple for $885,000.

Vendors have been pouring properties onto the market to take advantage of the selling time before Easter, and the result was a 78 per cent clearance rate. There were 959 auctions this weekend, with 752 properties selling and 207 being passed in, 100 of those on a vendor bid. In addition to the auctions there were also 352 private sales reported.

Last weekend’s clearance rate of 70 per cent was surprisingly strong for a long weekend. While this weekend’s result came from a wide mix of listings available for auction, with some lower priced properties in the western suburbs and inner-south making an impact in the weekly figures. Despite this, the higher level market is still holding well.

It may have been the lovely sunny weather, but some auctions received crowds of 200 attending on Saturday, which is a good sign for vendors hoping to sell before Easter.

There is little doubt that some suburbs of Melbourne will expect modest price growth this year, as the demand for properties located within areas with good public and private schools is being driven by upgraders taking advantage of the lower interest rates.

Even the sandbelt suburb of Black Rock experienced a record sale price on Saturday, reaching a staggering $1,010,000 above the reserve and setting a new residential record price of $3,810,000 for the suburb.

Auction Results

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1a Kinross Street, Hampton East. Sold for $781,000.

Secured behind high garden fences, this two bedroom home is surprisingly spacious with two living areas and an entry level price quote of $580,000 – $640,000. The auction on Saturday was attended by thirty people, with three parties pushing the price up to $700,000 when it was announced as “selling”. The bidding did not stop there, as the auctioneer accepted bids from three different directions until the hammer was finally brought down at a price of $781,000.

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2 Deal Close, Moorabbin. Sold for $820,000.

One of Moorabbin’s unique solid brick post-war homes went under the hammer on Saturday. Made from local concrete Besser blocks, the 3 bedroom family home with a quality renovation, family sized garden, garage parking and quiet cul de sac location seemed the perfect formula for this popular auction which attracted over 60 onlookers. Opening at $710,000 and on the market at $810,000 the fierce bidding from 3 prospective buyers saw the property sold for $820,000 to the applause of the crowd.

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11 Tucker Place, Fitzroy North. Sold for $3,571,000.

This unique warehouse conversion, designed by Daniel Van Cleemput, with six bedrooms and an emphasis on space and light, attracted a large crowd to the auction. One man made a $3 million opening offer, which was topped by a woman adding another $20,000. The bidding continued between the two until $3.34 million when a third prospective buyer jumped in, and the property was announced on the market just shy of $3.4 million. However, it was the first bidder who was able to outshine everyone and take the keys for $3,571,000.

Article By Ray Becher

As a seller, you don’t have to spend a lot of money to prepare your property before it goes to market, and simple things can go a long way in creating the best first impression possible, and as the expression goes, first impressions last.

A well-presented property is more appealing to prospective purchasers and can contribute significantly to buyer interest and the final sales price, but preparing your house for sale means more than just taking the dog to your in-laws and hanging some fresh towels in the bathroom.

Tips like; cleaning, deodorising, de-cluttering and removing all personal possessions go a long way in presenting the property as a blank canvas and making it more desirable to prospective buyers.

Nature strips and gardens should be mowed and manicured, and any unfinished projects should be completed. If budget and time permits, internal and external painting are always a great option, as is procuring the advice of a professional stylist and hiring furniture or key pieces to further highlight the properties features.

Every property is different, and we suggest you talk with your agent, or Vendor Advocate with regards to best strategies to present your property, and plan and budget accordingly to avoid stresses and having to do things at the last minute. (Like taking the dog to your in-laws!)

Advice on presenting your house is one of the services we include when engaged as a Vendor Advocate to sell your property, and the team from Elite Property Advisory would be pleased to work with you to best present your property and get it ready for market.

Kim Easterbrook talks about the expanding investor grade areas in the Western suburbs.

Read the full article here.

Kim Easterbrook comments on record median prices and what to expect next.

Read the full article here.

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