The weekend kicked off with some beautiful weather on Saturday which was ideal for Melbourne Spring auctions. The property market held up well considering there were 818 auctions and achieving a 57% clearance rate.
The Melbourne Property Market is currently running at two speeds. The $2m plus market has seen a decline in buyers across the board with the pricier properties having less bidders at auctions, with many passing in and either selling immediately after the auction, or via private sale thereafter. Entry level properties in quality suburbs is currently the most active market with many auctions achieving multiple bidders and properties selling well in excess of reserve.
With ANZ, CBA and ING increasing their interest rates in September, many buyers are shopping the banks to ensure that they have got themselves a competitve rate. There is no better time than now to speak to your mortgage broker to ensure you are with a lender that is offering a reasonable deal.
There will be very few auctions next weekend due to the AFL Grand Final and therefore no market wrap next Monday 1st October. But we will be back the week after and look forward to attending and reporting on a couple of Super Saturday auction weekends in October.
Kind Regards,
The Team at Elite.
2/2 Monamie Avenue, Highett Sold for $835,000
A well attended auction gathered to watch the rear of only 2 villa units in the heart of Highett go under the hammer. Well located villa units are currently one end of the market that is performing very well. The auctioneer did not have to call for bids for very long with one buyer opening the bidding at $650,000. No less than 2 seconds later, another bidder jumped in with an aggressive bid of $800,000. Two more bidders entered the contest but the property sold to a gentleman sitting on his car for $835,000. The auction was all over in about 3 minutes!
1/51 Wandsworth Road, Surrey Hills Sold for $ unknown
The auction of this centrally located 3 bed, 2 bathrooms and 2 car park premises in Surrey Hills attracted a good crowd of 71 people. This luxurious single level flat offered the buyer access to a great lifestyle, walk to the tram, train and schools. It was mainly targeted at the downsizer with nothing to renovate since it was in great condition for its age. Opening statements were given and the first bid was a vendor bid of $1,500,000 which there were no other bidders coming to the table at that time. After a couple of minutes the auctioneer went inside to consult the vendor, only to return with another vendor bid, but again there were more spectators even though there were apparently interested parties in the crowd. The property was passed in at $1,525,000 and again showing the downsizer market is currently very slow.
17 O’Hara Street, Blackburn Sold for $1,455,000
The auction of this development site with a liveable house on it failed to fire. This property is extremely well located close to shops and the train station. The auctioneer had many attempts to try and encourage genuine bidding however was not successful in doing so and placed multiple vendor bids before passing the property in. The property passed in but sold over the weekend for $1,455,000. Due to lending restrictions developers are less active in the market which is giving rise to some opportunities for developers who are able to access a loan.
Clearance Rates
Melbourne
24 September 2018
This week: 818 Auctions
Clearance: 57%
Last Year: 74% [source: REIV]
There were 343 properties sold at auction in Melbourne, with 74 selling prior to auction and 313 being passed in, 170 of those on a vendor bid. In addition to the auctions, there were also 192 private sales. The result, was a clearance rate of 57%.
As the market becomes more balanced between buyers and vendors, first home buyers seem to be rushing back into the market whereas the downsize market remains quiet (generally speaking).
We are seeing more properties being sold before auctions due to vendors not wanting to risk losing a good offer come auction day. Many buyers are also sitting on their hands waiting for properties to pass in.
Melbourne’s outer suburbs continue to produce more strong results. And again, we are still seeing some suburbs within Geelong and the outer ring of the West and South East produce some great opportunities for buyers.
Kind Regards,
The Team at Elite.
20A Wave Street, Elwood Sold for $1,350,000
On a blustery day in Melbourne around 48 people attended the auction of a 3 bedroom single level home in Elwood. This home offered an established private inner city escape, craftsman built with timeless finishes and free from body corporates. Only minutes to shops and transport, and a heartbeat to Elwood Village cafes, boutiques and restaurants, walk to Elsternwick Park, the beach and the local schools. The opening bidding started out at $1,175,000 and was fought out between one other bidder. The property was announced on the market at $1,200,000 with bid increments of $10,000 then slowing down around $1,300,000 to later sell for $1,350,000.
21/30 Tanner Street, Richmond Sold for $1,850,000
In a super central Richmond position and north facing, this outstanding top-floor apartment went to auction in Richmond. With its sweeping uninterrupted views across Richmond Hill added a breathtaking perspective to the brilliant design and contemporary style of this luxuriously-appointed apartment. The auction was attended by around 65 people with 5 bidders for the property. The auction demographic was predominately middle aged professionals. The starting bid kicked off as a vendor bid of $840,000 with $10,000 bid increments to start. At $970,000 the apartment was announced on the market, and in the end after a flurry of bids the final bid and knockdown price of $1,850,000 was achieved.
83 Glen Iris Road, Glen Iris Sold for $1,795,000
This lovely 3 bedroom period home near Ferndale Park, with a 2 bathroom layout and a north-facing living room with kitchenette beside one of the bedrooms and bathrooms went to auction over the weekend. A decent crowd of people were in attendance at the auction for this period home with classic style and it’s prized position in Glen Iris. The property offered the winning bidder the potential to renovate or reinvent the home which already came with an elegant kitchen including Blanco and Asko appliances. The property at the end of the bidding was sold for $1,795,000 under the hammer.
Clearance Rates
Melbourne
17th September 2018
This week: 730 Auctions
Clearance: 57%
Last Year: 74% [source: REIV]
