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
