It has been a great week for Victorians! Not only did Melbourne Storm, Geelong and Richmond book themselves a spot in this years Grand Final, cases of Covid-19 have dropped dramatically and we are now on the brink of defeating the second wave. Last night Daniel Andrews announced some easing of restrictions and more to come over the next two weeks. Interestingly, we had a run on enquiry from new buyers after the announcements yesterday. There is certainly a lot more positivity in the air.
Last week in metro Melbourne, there were 117 online auctions reported to the REIV with a clearance rate of 76%, in addition there were 152 private sales. We are still well down on the usual spring numbers but I am expecting this to increase considerably over the next few weeks. As part of Daniel Andrews announcements, auctions are now allowed on site with 10 registered people only in addition to the agency staff. We will see some online auctions now convert to onsite auctions.
In Regional Victoria, the property market is very active with days on market declining. Some of these properties are selling to Melbourne buyers purchasing sight unseen. This includes properties in the town centres of Geelong, Ballarat and Bendigo and acreage properties on the outskirts of these towns. Over the lockdown period, there has been a real shift in the mindset of some Melburnians that has resulted in wanting a sea or tree change or wanting a second residence in the country. This has caused an increase in demand for these areas.
Whilst this could be just a short term phase that could decline over time, there is certainly an increase in investors looking to purchase in these areas which will push higher demand long term. Whilst residents of metropolitan Melbourne cannot enter Regional Victoria for the purpose of a property inspection, there is still a window of opportunity here as many buyers will not buy sight unseen.
Have a great week everyone.