The clearance rate jumped up back into the high 70%’s again with 535 auctions reported to the REIV. 317 sold at auction, 98 sold before auction, 1 sold after auction and 119 passed in. There were an additional 127 private sales. The same time last year there were 604 auctions reported resulting in a clearance rate of 71%.
The Andrews Government announced last week that a proposal to cap rental increases on investment properties was now completely off the table. Whilst it appears to be bad news for tenants, the reality is that such a proposal, on top of increased land tax, new compliance legislation, interest rate hikes and general cost of living… could have been the last straw for many investors. The proposal would have been counter productive and likely would have further lessened the supply due to more investors selling their investment properties. In the long term, this would have resulted in even higher rents. Daniel Andrews was quoted in saying ‘he is ruling out anything that would result in less housing’.
219 Page Street, Middle Park went under the hammer and had active bidding from two buyers. The two bedroom, one bathroom, single fronted period home had been structurally renovated and is located in one of the best streets in Middle Park. The property was quoted at $1,800,000 to $1,900,000 prior to auction and sold under the hammer for $2,050,000.
Have a great week!
Geelong Property Market Update
In recent weeks, Geelong, as did other areas of the State, received the bad news that the Commonwealth Games was not going to be held in Victoria. But some good news followed from the Federal Government that Hanwha Defence Australia had been awarded a contract to build 129 Redback infantry fighting vehicles at its Avalon facility north-east of Geelong in Victoria. A project expected to cost $5b to $7b and expected to create 600 direct jobs and many more indirect jobs.
In addition to this, Geelong was the successful tender for the new Convention and Exhibition Centre which will include the construction of a purpose-built convention and exhibition space. The precinct will also be home to retail and food offerings, a large public plaza and a 200-room Crown Plaza hotel.
Just more reasons to add to why the population of Geelong will likely to continue to grow strongly and add pressure on housing supply. There have been a low level of properties on the market to sell this year, as with most areas within the state, but interestingly over the past few weeks, that there appears to be an increase in stock on the market and an increase in buyers attending open for inspections. Whilst too early to read anything into this, it could represent is a start of an active and balanced Spring season and hopefully back to some kind of normal selling and buying conditions.
57 Laura Avenue, Belmont went to auction over the weekend which is an updated three bedroom, one bathroom home on 663 sqm attracted four active bidders but passed in for $746,000. It sold immediately afterwards for $752,000.
Vicky Whittaker – Geelong and Regional Victoria Office