Multiple bidders at auction, record prices achieved, is the Melbourne property market going down?

There were almost 400 property sales in Melbourne last week as property listings and auction numbers start to rise (although still low volumes compared to previous years).

Buyer confidence and low stock levels produced some strong auction results with many properties selling with competition from multiple bidders.  77 McCracken Street, Essendon sold with four bidders for $2,985,000, 6 bidders pushed the price of 24 Laura Street, Moonee Ponds $351,000 over reserve selling for $2,201,000.  21 Margarita Street, Hampton recently sold for a record price of $5,950,000. Just to name a few.

But what has really got me thinking as to where is this market at, is the sale of 12 Hammerdale Ave, St Kilda East.  This renovated two bedroom, two bathroom renovated semi-detached house sold at auction on the weekend for a record price (for a two bedroom house in the suburb) of $1,690,000.  We purchased 16 Hammerdale Ave, St Kilda East for an investor in August last year for $1,320,000.  Number 16 was on slightly smaller land but structurally had a better floor plan and an extra bedroom.  One could argue 16 Hammerdale is a superior property.   This is $370,000 or 28% more in less than 12 months.  A huge gain for our client.

So whilst we are seeing some properties selling very strong, there is still the odd opportunity that presents itself.  Of the last three auctions that I have been a bidder, two of them passed-in to me enabling me to purchase them under what we expected them to sell for.  Although the properties were well bought, there were still multiple buyers circling who were willing to make an offer had we not purchased them.

We may see stock levels reduce again as a result of the rise in Covid-19 cases however the Government have introduced restrictions quickly and hopefully this is just a little blip in the recovery stage.

Have a great week.

Kim Easterbrook