Melbourne Property Market Update
Auction numbers were higher over the weekend with 557 auctions reported to the REIV, resulting in a clearance rate of 73%. Interestingly to note that the same weekend last year, there were 1,162 auctions resulting in a clearance rate of 80% and it was very much a sellers market, whereas the current results are demonstrating that we are likely to be in a more balanced market (where the clearance rate usually hovers around 70% to 80%). We have less buyers in the market but we also have less properties on the market to purchase. In addition, there were 245 properties sold via private sale.
There were many reports over the weekend of propeties going to auction and selling well above their reserve prices. This is a direct contradiction to current media reports who are renowned for focusing on doom and gloom reporting. We have also noted there appears to be an increase in buyers obtaining financial assistance from parents to get into the property market due to the lack of available rental properties.
The auction of 135 Somerset St, Richmond smashed it’s reserve by over $1,000,000 in front of a huge crowd. The modern four bedroom, three bathroom home was advertised with a price guide of $2,700,000 to $2,900,000 prior to auction. The property sold for $4,200,000 which was well above its $3,050,000 reserve price.
On the other side of town, a four bedroom, one bathroom house at 2 Crawley Street, Reservoir was quoted $1,075,000 – $1,150,000 prior to auction, three active bidders participated and the property sold for $1,315,000 to a young couple attending the auction with their parents.
Vicky Whittaker, Senior Buyer’s Agent from our Geelong office has provided us with an updated on the Geelong property market, please see below.
Have a great week.
Geelong Property Market Update
Similar to Melbourne, we are seeing low stock levels in Geelong which is keeping property prices stable. Properties that require renovations are taking longer to sell due to less buyer demand. The ongoing pressure on the build/renovate market, where a lack of materials, alongside rising costs has caused a backlog in build/renovate projects being completed and therefore an inability to secure trades to carry out works. Properties that have had some renovations and are turnkey ready are seemingly still popular.
Open for inspections are well attended overall however, a lot of buyers seem to be very cautious about pulling the trigger and purchasing a property. With this being said, there should be some good opportunities for astute investors and home buyers over the course of 2023.
Geelong is only one hour’s travel by car and not much more by train, close to the beach, and on the doorstep of the Surf Coast and the Great Ocean Road. There has been a trend of Melburnian’s moving to the area of recent times due to it’s cheaper price point to enter into the property market and close proximity to Melbourne’s CBD.
Selling Agents are now opting to sell properties via private sale rather than auction, this is due to many buyers are requesting ‘subject to finance’ clauses on a contract which auction do not allow.
A well presented, four bedroom, two bathroom home at 11A Cambridge Street, Belmont sold on the weekend with four active bidders at auction. The property sold for $888,000 which was $88,000 above reserve.
Vicky Whittaker – Senior Buyer’s Agent (Geelong/Surf Coast/Ballarat)