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Sydney buyers pausing Melbourne and regional Victoria property purchases

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August 2, 2021

Hi,

Lockdown 5.0 thankfully ended last week which allowed onsite auctions to take place over the weekend.  433 auctions were reported to the REIV weekend resulting in a clearance rate of 88%.  278 properties sold at auction, 50 passed in, 105 sold before auction but 595 were postponed (to take place over the next few weeks).  In addition, there were 186 private sales.  Interestingly, this time last year there were 217 auctions and a clearance rate of 78%.

Lockdown 5.0 does not appear to have impacted the property market with buyers very willing to participate at auctions over the weekend.  If anything, it may have had a negative effect on the amount of properties coming onto the market.  Some vendors are concerned about the disruptions of lockdowns and are holding off selling whilst in actual fact, the lack of stock couldn’t make it a better time to put their properties on the market.

As a company, we have seen a small impact of the Covid situation in Sydney.  The first six months of the year we had received considerable buyer enquiry from both owner occupiers moving to Victoria due to the housing affordability factor and Sydneysiders wanting to invest in the Victorian property market.  Over the past few weeks this enquiry has dropped to virtually zero.  Whilst we believe this will only be short term, there is no doubt and understandably, residents from Sydney may have put their plans into a holding pattern.

75-77 Haydens Road, Beaumaris went to auction over the weekend which was quoted $2,500,000 – $2,650,000 prior to auction.  The three bedroom, two bathroom home in need of renovation is set on a large block of 1,226 sqm sold for a huge $580,000 over reserve for $3,230,000.

A fire damaged home 44 Collins Street, Thornbury sold for a big price considering that it would be unlikely that a bank would lend money against the property in its current state as it could be deemed as uninhabitable.  The tenants who resided in the property unfortunately fell asleep whilst a candle was burning and the front section caught fire.  Five bidders participated in the auction with the property selling under the hammer for $1,517,500 which is significantly higher than the $1,150,000 to $1,250,000 quoted price range.

Have a great week.

Kim Easterbrook

 

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