There were 504 auctions reported over the weekend resulting in a clearance rate of 76%. 288 properties sold at auction, 93 before auction and 123 passed in. There were an additional 206 private sales. In comparison, the same time last year there were 790 auctions producing a clearance rate of 69%.
Renters may be facing further pressure on rental prices with a rise in investors considering selling their investment properties. The Andrews Government over the past few years have made it harder for Rental Provider’s (Landlords) by introducing new compliance legislation in which RP’s must have their properties complying with multiple guidelines in order to legally lease out their properties. This has resulted in increased costs of holding an investment property. In addition to this, the Andrew’s Government have introduced increased land taxes for investors and now there is the further pressure with interest rates predicted to rise further.
Over the past month we have seen an increase in Rental Provider’s wanting to sell their investment properties in order to pay down their owner occupier debt and reduce costs. This could result in an increase in properties on the market which will be welcomed by Buyers and the increase in rents due to less stock available will be welcomed by Investors. This could prove disastrous for Renters with vacancy rates already extremely low across the state.
Updated family homes are still proving to be highly popular with an updated three bedroom, two bathroom home in Cheltenham achieving strong competition at auction on the weekend. 50 Eversham Road, Cheltenham had a reserve of $1,300,000 prior to auction and the auction started strongly with the opening bid at that level. Six bidders still participated above this with the property achieving a final result of $1,505,000.
Have a great week.