The clearance rate held strong on the weekend with over 741 auctions being reported to the REIV resulting in a clearance rate of 78%. This has improved on last year’s clearance rate of 69%. Interestingly, the REIV are reporting that there were 2,404 auction sales in September 2023 which was a 37% increase from September 2022 and the sixth highest September on record for the number of auction sales.
All signs are indicating that the property market has stabilised and property prices could be heading upwards with very active bidding over the weekend and a general sense of positivity. Whilst I don’t read into anything the media has to say about the property market, some buyers do and there were many reports out last week indicating the property prices are on the rise again. This will give some buyers confidence that now is the time to buy. On the flip side of this though, stock levels are on the rise for the Spring season so we should have an active, stable market for the rest of the year.
However, there is bad news for tenants with Corelogic just releasing their Quarterly Rental Review for July to September 2023 and Australia’s vacancy rate fell to record levels at 1.1% for September. Melbourne’s overall vacancy rate is now sitting at 0.8%. With some landlords selling, the total count of national rental listings fell to its lowest level in almost 11 years.
There were plenty of hands in the air on the weekend with active bidding at many auctions. 9 Soudan Street, Malvern went to auction which is a four bedroom, one bathroom double fronted period home on 465sqm of land, in need of a full makeover. The property was quoted at $2,200,000 to $2,300,000 prior to auction and the bidding was slow to start. In the end though there were five bidders and the property sold well above its $2,375,000 reserve for $2,475,000.
It seems buyers weren’t afraid of bidding for unrenovated properties with 42 Davis Street, South Yarra also going under the hammer. The inner city house has four bedrooms, two bathrooms and is on 499sqm of land with a pretty facade. The property sold for $5,250,000 on a reserve of $4,500,000.
On the other side of town, a renovated, three bedroom, one bathroom home at 91 Chirnside Street, Kingsville went to auction. The property was quoted at $1,250,000 to $1,300,000 and sold well above the range for $1,455,000.
Have a great week!