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 | 24 February 2020
This week: 957 Auctions | Clearance: 80% | Last Year: 53% [source: REIV]
Auction of the week
60 Evans Street, Port Melbourne
This single fronted home was highly sought after by three owner occupiers at auction. The property had been structurally renovated but was very dated. The agent accurately quoted the property prior to auction at $1,800,000 to $1,900,000 where we felt was exactly what the property was worth (upper end of range). The property sold at auction for a huge amount of $2,210,000 which was $310,000 over the reserve price.
Rental of the week
3/11 Pilley Street, St Kilda East
$560 per week
This Art Deco apartment has so many great features that it will sure to lease quickly. The well located apartment has two good sized bedrooms, is renovated, located within a VERY small block and has a large courtyard/backyard. A rare find. If you would like to arrange a time to view, please call our office on 9592 1122.
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email email@example.com
* Offer applies to a referral that leads to the engagement of our services.