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Clearance rate strong on Melbourne’s third biggest auction day on record

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Hi,

A huge amount of properties went under the hammer over the weekend achieving a clearance rate well in to the 80’s again for many weeks in a row.  1,451 properties went to auction over the weekend, with 964 selling at auction, 270 selling before, 1 sold after auction and 216 passed in.  In addition, there were 208 private sales.

In comparison, this time last year there were 1,161 auctions achieving a clearance rate of 90% and was the last weekend before Covid cases started to rise in Australia and fear started to set into property buyers.

Strong price growth is expected for the March quarter with no slow down in sight.  Huge crowds attended auctions on the weekend with many auctions experiencing strong bidding from multiple parties.

Australia’s population growth declined to its slowest rate in almost 15 years with negative net overseas migration and a drop in the national fertility rate.  It is expected that the population growth will remain low to negative for quite some time to come, but, when international travel is allowed again, overseas migration will start to rise and population will start to grow again.  This could put further pressure on property prices.

10 Rowe Street, Fitzroy North sold on the weekend for $915,000 above its reserve price.  The unrenovated, three bedroom hawthorn brick home was quoted $2,600,000 to $2,860,000 before auction.  The first opening big was $3,000,000 and the property was immediately announced on the market.  The price soared from there selling at $3,915,000 which was over $915,000 above reserve.

2/48 Argyle Avenue, Chelsea had a lot of interest from first home buyers, investors and downsizers.  This large two bedroom, two bathroom villa unit was quoted $595,000 to $650,000 prior to auction. Strong bidding from six parties (with many not getting the opportunity to put their hand up) resulted in the property selling for a whopping $850,000.  Quality villa unit prices have historically grown strongly and due to the entry level price point for these properties, we believe prices will continue to keep growing.

Have a great week.

Kim Easterbrook

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