The clearance rate has been remaining steady with 852 auctions being reported to the REIV achieving a clearance rate of 82%. 483 properties sold at auction, 213 before auction, 1 after auction and 155 properties passed in. We have three to four more weeks of new auction campaigns before the market starts to wind down for Christmas. This is when we will expect off market activity to rise and new listings advertised as private sale campaigns.
The Reserve Bank met last week and again kept interest rates on hold however they did mention the plan to not increase interest rates until 2024 might be brought forward if wages growth and inflation exceeded its current expectations. The RBA is likely to use a wait and see approach as we are still entering into the unknown of whether Australia could be hit with a new Covid-19 variant or the take up of booster shots in the future. It is looking unlikely that interest rates will be used as a tool to ease property price growth.
The majority of auctions are now back onsite with most of them performing well over the weekend. I don’t believe we are seeing the same heat in the market that we did earlier this year, however we are still witnessing active strong bidding and many auctions producing strong results.
6/50 Fewster Road, Hampton is an updated two bedroom villa unit with a large floor plan and reasonably sized courtyard. High quality, single level villa units are highly sought after from first home buyers, investors and downsizers and also rent out very well in comparison to some other asset types. The auction attracted bidding from three parties and was quoted $780,000 to $830,000 prior to auction. The bidding opened up at $840,000 but was not announced on the market until $860,000 where another bidder jumped in. The property sold to the first bidder for $920,000.
A huge result occurred in Albert Park with a four bedroom home located in beautiful St Vincent Place sold for in excess of $2,000,000 above the reserve. The property, whilst liveable will probably undergo an upgrade by its new owner and is situated on 506 sqm of land attracted three bidders at auction. It was down to two parties from $10,500,000 who both really wanted to secure this rare piece of real estate. The property sold for $11,110,000.
Have a great week.