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Lockdown limbo for the real estate industry

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August 23, 2021

Hi,

Auction numbers were down again over the weekend with 281 virtual auctions conducted.  Of these auctions 138 sold at auction, 136 sold before auction and 7 passed-in bringing the clearance rate to 98%.  Only auctions that selling agents were confident had buyers continued through to auction so the clearance rate is not reflection of the state of the market as 527 auctions have been postponed.

With Covid-19 case numbers rising and regional Victoria now thrown into lockdown, the real estate industry is effectively shut down with only virtual tours of properties allowed.  Rental properties seem to be leasing well via virtual tours but very few properties will sell and new listings being launched are extremely low.

The REIV are currently lobbying the government to have 1 on 1 private inspections permitted (which was allowed during Lockdown 1.0 via a permit system) but it seems to be falling on deaf ears.  I could only imagine the stress that some vendors must be feeling if they are selling due to financial hardship or if they must sell as they have purchased a property.

The online auction of 9 Kawareen Street, Balwyn North lasted for 90 minutes while two parties would not give up on securing the five bedroom, three bathroom home.  For 30 minutes of the auction the bidding increments were at just $500 with both parties at multiple stages during the auction giving up and congratulating the other party.  The property sold for $2,421,500 which was over the $2,200,000 reserve.

A home in Parkdale went under the hammer on Saturday after just having two opens prior to lockdown.  9A Evans Street, Parkdale is a four bedroom, two bathroom that has a great floor plan which allows it be easily renovated.  24 buyers registered to participate in the auction with only three bidders taking part. The auction commenced on a vendor’s bid of $1,000,000 with the property being announced on the market at $1,200,000.  The property sold for $1,240,000 to first home buyers.

Have a great week everybody!

Kim Easterbrook

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