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Lockdown 4.0 and the impact on the real estate industry

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May 31, 2021

Hi,

Last weekend was set to be Melbourne’s second biggest auction weekend of the year, with over 1,400 auctions booked in.  However, the real estate industry was thrown into chaos on Thursday with the announcement of lockdown 4.0.  As a result, many properties were sold before auction, auctions were being postponed, others converted to online auctions and some changed to private sale.

In the end, 724 auctions were reported to the REIV resulting in a clearance rate of 93%.  This clearance rate is not accurate due to the amount of postponed and withdrawn auctions.  However, what it does tell us with the ones that still proceeded to auction, most sold.

Victorian’s have had to deal with so much over the past 14 months but one thing is for sure we have become great at adjusting to lockdowns at short notice.  The industry is still able to operate but only in the comfort of our own homes.  No open homes or private inspections are allowed and that includes for both selling and renting and only services relating to property settlement or commencement/end-of-lease (including removalists) are permitted.

Lockdown also did not stop some strong auction results with a house in Brighton East selling $560,000 above reserve.  9 Stone Street, Brighton East is a five bedroom, three bathroom period home on the non-beach side of Nepean Highway.  Six bidders participated in the online auction with the property selling for $3,060,000.

Quality villa units continue to be in strong demand.  4/204-205 Beach Road, Mordialloc had 8 parties attend the online auction.  A strong opening bid of $960,000 knocked most of the bidders out and two bidders went back and forth until it sold for $1,010,000.

Have a great week.

Kim Easterbrook

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