Melbourne’s auction market has received a warm welcome back for 2015. There were 458 auctions reported this weekend, with a clearance rate of 74 per cent. From those auctions 338 properties sold and 120 were passed in, 61 of those on a vendor bid. In addition to the auctions there were also 358 private sales reported.
Auction numbers are on the increase again, as is the clearance rate which saw a nine per cent jump since last weekend. But were those lower clearance rates recently recorded due to lower housing stock, or could it be a trend?
The ABS released figures last week describing residential price growth slowing, with Melbourne’s established house prices only growing by 1.1 per cent duing the December quarter.
The recent interest rate cut, and predictions of another rate cut being on the cards for the coming months may mean that property prices will be on the rise again. The lower interest rate environment mixed with the current volatility of the Australian share market means that returns on investments are at an all-time low. Investors are beginning to see property as a safe alternative, particularly for their SMSF.
The current stock levels available in Melbourne are tracking lower than the same time last year by 25 per cent. We believe this to mean there will be some heated competition for good quality properties. Some of our team attended very hotly contested auctions this weekend, and we are expecting more of this in the early parts of the year.
1/8 Duff St, Sandringham. Sold for $715,000
This villa unit, in urgent need of renovation was highly contested. Originally quoted at $500,000 to $540,000, it was announced on the market at $570,000, which we felt was very realistic for a property like this. Part of a small unit development, the property boasted street frontage and its own driveway which would appeal to many buyers.
Six bidders fought to secure this property and to our surprise it sold well in excess of any comparable sales in the area. Three bidders were still in the race at $700,000 but all down to their final $1,000’s when the property sold for $715,000 to the disappointment of many buyers in the crowd.
6 Kyarra Ave, Hampton. Sold for $1,640,000
Terrifically positioned close to Hampton Street and Sandringham shops, this lovely Californian Bungalow in walking distance to the beach was highly sought after, with a quoted price of $1.3M to $1.45M. The auctioneer, Sam Paynter did a great job of entertaining the crowd whilst attracting bidding from 6 parties.
The opening bid was $1.25M from a very determined buyer who was bidding strongly for the entire 30 minute auction. Bids were coming in from all over the street until a gentleman jumped in when all thought it was over to snatch the property away from the original bidder, who no doubt thought the home would be his. The property sold for $1.64M, well in excess of the reserve price.
18 Street St, Footscray. Sold for $712,000
A charming family Edwardian, stylishly renovated attracted a crowd of 100+ hipsters for the auction of this three bedroom house. A guide price of $540,000 plus brought out the buyers, and the auctioneer received an opening bid of $520,000 which was quickly crushed by a bid of $610,000. A third couple pushed the price to $635,000 to which the auctioneer announced the property on the market. Rapid-fire bidding began when a fourth party began outbidding another couple for approximately five minutes, and 16 bids. The final winning bid was delivered by the last party who secured it for $712,000.