Elite’s Weekly Market Wrap
The weekend was the first test of the Melbourne property market with almost 1,000 properties going under the hammer. The clearance rate remained steady at 80% which is indicating we could be in a seller’s market (usually the case when the clearance rate is over 80%). A few more weeks of auctions is needed to fully gauge whether this is the case. On the ground though, properties are selling where we believe they should be based on recent comparable sales (generally speaking). This is demonstrating that we are currently experiencing steady growth, rather than a sharp rise in property prices which historically is unsustainable.
According to the ABS, loans to investors have increased by 22% since the election in May with Melbourne being the preferred city for investors to invest in. Banks are also fighting to attract these investors by slashing interest rates as they battle to gain market share. This is a huge turnaround from twelve months ago when the Royal Commission and uncertainty in the market put many investors on hold.
A big congratulations to all our clients who purchased this week. We had a real mix of successful buyers ranging from investors, first home buyers and upsizers securing properties before auction, at auction, after auction and off-market.
Have a great week.
Kim Easterbrook and the team at Elite.
Melbourne | 1 March 2020
This week: 1160Auctions | Clearance: 79% | Last Year: 57% [source: REIV]
Auction of the week
1/158 Victoria Road, Hawthorn East
A large crowd turned up to see this ground floor 2 bedroom apartment with street frontage go to auction. The reserve of $595,000 was smashed by an opening bid of $630,000 in which the property was immediately announced on the market. Five bidders in total drove the price to $719,000. We are predicting that good quality, low rise apartments will start to see some solid capital growth now as entry level properties for high quality suburbs are becoming more and more in demand from investors and first home buyers.
New lawks making it easier for tenants to have pets
As of today, the anticipated new pet laws will come into effect. What does this mean for you as a landlord? Basically renters can keep pets in a rental property with written permission from the rental provider (landlord). Permission can only be refused with approval and an order made from the Victorian Civil and Administrative Tribunal (VCAT). The new laws do not apply to rental properties that already have pets. If a renter has a pet before today in the rental property, there is no need to seek the written consent of the rental provider again.
However, if the renter wants to bring a new pet into the property, they must request the rental provider’s consent in writing. They must use the Consumer Affairs Victoria pet request form. Renters can do this by email if both parties have agreed to communicate in this way.
The new laws make it imperative to have landlord insurance with pet damage cover. We recommended that each owner check and update the insurance policy at their earliest convenience. For more information, including the pet request form, is available on Consumer Affair Victoria’s webpage.
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