Hi ,

There were 724 auctions over the weekend resulting in a clearance rate of 80%.  438 sold at auction, 141 before auction and 145 passed in.  There were an additional 176 private sales.  These numbers are well down from 1,232 last week and 1,732 for the same time last year (however these numbers were high due to a snap lockdown in February).

There is finally some good news for landlords in which many struggled through 2020-2021 due to some tenants employment struggles. This resulted in decreased rental incomes and increased vacancy rates (and longer lease  times) and then on top of that, the government amended the Residential Tenancies Act which introduced tougher, new laws to protect the rights of tenants.

It now appears the wheels are turning with rental incomes rising and vacancy rates dropping.  Tenants in Metro Melbourne and Regional Victoria are feeling the pinch as landlords seek to increase rents back to pre-pandemic levels.  According to the new Residential Tenancies Act, rents are only allowed to increase once a year which could explain in some cases, landlords have opted to increase the rent significantly rather than a staggered approach which was previously allowed two rental increases in a twelve month period.  As a result though, we are hearing reports of some tenants vacating properties due to the rent rises to seek cheaper accommodation.

According to Domain, there is a national trend of vacancy rates falling across the country with Melbourne’s vacancy rate down from 4.4 per cent in February 2021 to 2.1 per cent last month.  This has resulted from an increase in rental demand and drop in supply.  Some landlords have sold due to hardship through 2020-2021 with unstable tenant incomes and also new requirements introduced by law for properties to be kept to a minimum standard.  This has required some landlords having to do works to their property which otherwise they would not have which in turn has increased the running costs of these properties.  Some landlords have also put their properties back on the holiday rental market as international and domestic borders opened.  I am expecting this declining trend to continue throughout the year and as a company, we are seeing properties generally lease out faster and our vacancy rate has been at its lowest level in at least a couple of years.  The REIV reported the vacancy rate for Ballarat to be at 1.1% and Geelong 1.6%.

A renovated, three bedroom, two bathroom, villa unit at 61A Roslyn Street, Brighton went under the hammer on Saturday.   The advertised price prior to auction was  $1,700,000 – $1,800,000 and four bidders participated pushing the end sale to $2,150,000 which was well above the price where the property was announced on the market at $1,950,000 (however the property could have hit its reserve well before then).

Have a great week.

Kim Easterbrook

Hi ,

There were 933 auctions over the weekend achieving a clearance rate of 76% which is slightly down on the same weekend last year.  508 sold at auction, 199 sold before auction, and 226 passed in.

The amount of properties on the market has now returned to healthy levels with reports that stock levels are tracking 5.5% higher than a year ago and 4.7 percent above the previous five-year average (according to CoreLogic).  These levels are contributing to the stabilisation of the property market where we are seeing the clearance rates consistently in the mid to high 70s.  This also reflects what we are seeing on the ground, where there are less bidders per property at auction, albeit good properties are still selling under strong competition.

The rental market also appears to be showing signs of recovery with the vacancy rate halving from this time last year.  Domain has reported that vacancy rates in February dropped from 4.4 percent down to 2.1 percent.  It is predicted that will continue to tighten with immigration from overseas putting further pressure on this market.  This is welcome reprieve for landlords with many impacted by the number of tenants in hardship during lockdowns.  Landlords are also now dealing with ensuring their properties are compliant with the new Residential Tenancies Act which has put some strict compliance rules in place which must be adhered to by March 2023.

A suburb record price was achieved in West Footscray on the weekend with a large renovated five bedroom, three bathroom home selling under the hammer. 39 Palmerston Street, West Footscray achieved a price of $1,930,000 but only after passing in and was negotiated immediately after the auction.  Family homes are still selling strong many buyers are looking for extra space after the lockdowns.

On the other side of town, another suburb record was achieved at 9 Colin Street, Bentleigh East with a newly constructed, 4 bedroom, 4 bathroom home, not in the McKinnon High School zone was sold under the hammer.  The property was quoted for $2,650,000 – $2,850,000 prior to auction but sold under the hammer for a huge $3,220,000.

Have a great week.

Kim Easterbrook

Hi ,

A slight dip in the amount of auctions over the weekend resulted in a clearance rate back in the 70’s in Melbourne.  There were 888 auctions reported with 683 sold at auction, 205 passed in and there were an additional 196 private sales.  The overall clearance rate was 77%. It is expected that the amount of new listings will be reduced this week as we come into the Labor Day long weekend, then we have a clear four week run before we go into the first term school holidays and Easter long weekend.

I have invited Vicky Whittaker (director of Elite’s Regional Victoria office) to provide us with an update of the property markets in Geelong/Bellarine Peninula and Ballarat.

Good morning ,

Property prices in Geelong and surrounding areas have risen over 21% over the past 12 months due to strong population growth and demand from investors.  Whilst there is still strong demand, it appears the property market has stabilised somewhat suggesting FOMO (fear of missing out) from buyers has eased and stock levels have been improving.  Auction clearance rates have been consistently achieving over 70% on a weekly basis.

The Geelong market remains strong but it is not as heated as it was last year. Geelong prices have risen 21% over 12 months, and with stock levels still low throughout the area, we are seeing many strong sales prices with auction clearance rates being above 70% on a weekly basis.

There has been a strong shift in demand for recently renovated houses with buyers wanting turn-key properties rather than taking on the renovation themselves.  This is likely due to the ongoing pressure of building prices, lack of materials, delays in trades due to the backlog from Covid lockdowns and increase in trade prices.  Also could be a sentiment of people wanting a more stress free lifestyle and therefore unprepared to take on the project themselves.

According to the ABS, Geelong had Australia’s fifth highest net movement of population after the onset of the Covid pandemic in April, 2020. Whilst some moved from Melbourne for a sea or tree change, this movement has certainly slowed down from movement during lockdown.  Many property buyers chose to move to Geelong due to property prices being so high in Melbourne, the ability to work from home and commute to Melbourne two or three times a week, good lifestyle and great schools for families.

Over the weekend, a tiny miners cottage went under the hammer.  4 Sutherland Street, Geelong is a very well located, small and dated two bedroom home on 147 sqm.  The property was quoted $599,000 to $627,000 prior to auction with three participants at auction pushing the final sale result to $697,000.  The property had last sold in 2014 for $344,000.

For investors, the residential rental vacancy rate in Ballarat and Geelong sits around 1.5% which means there is high rental demand in quality properties.  If the property is in good condition, well located and appropriately priced, a landlord could expect multiple applications from just one or two open for inspections.

With a cheaper buy in price, Ballarat is also experiencing a slow down in the capital growth rate, but the demand is still remaining high.  Ballarat Central, Soldiers Hill, Delacombe and Wendouree are popular areas for both investors and home buyers with entry level properties selling within the $500,000 to $600,000 range.  The days on market is consistently low with many quality properties selling after their first open for inspection.

Have a great week.

Kim Easterbrook and Vicky Whittaker

Hi ,

Another Super Saturday across Melbourne over the weekend resulted in a slight dip in the clearance rate to 76% from 81% last weekend.  It seems to be currently bouncing between the mid to 70%’s to the low 80%’s.  Of the 1,049 auctions reported, 612 sold at auction, 184 sold before auction and 1 sold after auction.  252 passed in and there were an additional 216 private sales reported.

With war breaking out between Russia and Ukraine, there will be some flow-on-effects which will affect Australians pockets.  Surging petrol prices, increase in grocery bills, higher prices for gas and electricity, stock market dropping and imports/exports will also be affected.  This could benefit Australia with energy exports likely to increase from sanctions imposed on Russia.  The Australian dollar is also predicted to be stronger as a result.

Interest rates are expected to rise as early as next month as a result of the Australian economy recovery.  Spending is on the rise as Omicron case numbers drop and mask mandates have been removed in some states.  The reality is that rising interest rates are a sign that things are improving.  The unemployment rate dropped to 4.2 per cent in December and wages growth is improving.  Whilst short term interest rate rises are expected, the rises shouldn’t be steep and will likely be gradual.

Whilst we experienced a slight dip in the clearance rate, it didn’t feel like that on the ground with the Elite team attending some very competitive auctions.  50 Esplanade, Brighton went to auction over the weekend with the property being sold for the first time in over 100 years.  The location being directly across the road from the Bay is highly sought after but the property had a strict single dwelling covenant on it which would have deterred some buyers.  The property sold for $5.395M.

Have a great week.

Kim Easterbrook

Hi ,

The clearance rate climbed back to 80% on a high volume weekend of 952 auctions.  757 properties sold (563 at auction and 194 before auction), 195 passed in and there were an 180 additional private sales.  These numbers demonstrate confidence in the market from both buyers and sellers however some agents are reporting an increase in properties passing in with one or two bidders participating in the auction but immediately selling after.  It is worth noting these properties are still listed as ‘sold at auction’.

With the international borders opening today many questions are being raised as to how this will affect the property market.  Realestate.com.au have shared data which demonstrates that offshore searches from Hong Kong, Japan, Singapore, China and Malaysia have increased by 13% this year so far.  This number is expected to continue to rise.

The latest figures from the FIRB show that for the 2019-2020 period, Victorian sales to offshore buyers dropped to 2% of total sales with comparison in years previous to this showing the rate to be as high as 30%. With the unemployment rate for the country to drop to as low as 3% this year, it is predicted that Australian businesses will soon be looking to recruit overseas for skilled workers.  The CBD market is also expected to see some increased property activity with international students returning.  Overall, I am expecting this to increase buyer demand in Australian capital cities (particularly Melbourne and Sydney) and surrounding regional towns as the government, no doubt will be looking at population growth as one aspect to assist in the economy recovery from the impact of Covid.

101 North Road, Brighton went to auction over the weekend with a large crowd in attendance.  The property is a dated but very liveable single level, three bedroom, two bathroom with a double garage home with no shared driveway.  The entry level property was in demand from both young families and downsizers.  The property was quoted $2,000,000 to $2,200,000 prior to auction and attracted bidding from four buyers.  There were no doubt other buyers attending the auction that did not put their hand up.  The property was announced on the market at $2,350,000 and sold for $2,800,000 under the hammer achieving $450,000 above reserve.

Have a great week.

Kim Easterbrook

Hi ,

The auction clearance rate dropped to 77% over the weekend as the number of auctions increased to 724.  Of these 724 auctions, 560 sold at auction and 164 passed in.  There were an additional 150 private sales.

There could be some early signs that we are heading into a more balanced market as some agents are reporting fewer bidders at auction and a few more pass-ins.  This could be welcoming news for buyers as auction clearance rates have been sitting well into the 80%’s for the past 12 to 18 months.  Stock levels are also on the rise which will continue to help balance out the market which should result in a confident, stable market for the first six months of 2022.

Whilst we saw a slight drop in the clearance rate, some strong auction results were still being recorded across Melbourne and Geelong with family homes continuing to be the strongest market.  48 Wallingford Street, Cheltenham sold well above the initial price guide of $1,330,000 to $1,400,000 with six bidders actively participating in the auction.  The property sold for $1,671,000.

On the other side of the city, an entry-level house was popular with nine bidders trying to secure the property at auction.  81 Woods Street, Newport was advertised at $780,000 to $820,000 prior to auction which for a two/three bedroom liveable house is almost unheard of.  The property sold at auction for $961,000.

Have a great week.

Kim Easterbrook

Hi ,

The property market is gearing up for 2022 albeit auction numbers are down in comparison to last year.  402 auctions were reported to the REIV down from 549 for the same time last year.  The clearance rate is remaining stable at 82%.  In addition there were 185 private sales.

There has been a lot of talk about inflation this week but it’s no surprise that the RBA decided to keep interest rates on hold this week.  The question remains, how much longer will interest rates stay on hold ?  Inflation is rising at a quicker rate than the RBA expected.  This shouldn’t initially have a huge impact on the property market as most buyers are already calculating interest rate rises into their overall purchase price budget.

Now that we seem to be getting on the other side of this latest Covid wave, I am expecting stock levels to continue to rise as we enter into a very active property market.  Some strong sales results have already been reported which is not unexpected and it feels like the property market has just picked up where it has left off last year.

4 Draper Street, Albert Park went under the hammer over the weekend.  The fixer upper was in strong demand and the auction contested by five parties. An opening bid of $1,000,000 did not deter the other parties with the bidding frenzy driving the price up to sell well above the reserve of $1,100,000.  The property sold $445,000 over reserve to sell for $1,545,000.

Have a great week.

Kim Easterbrook

Happy New Year!  Myself and the team at Elite are all back in the office and looking very much forward to a busy 2022.  Hopefully you have had a great start to the year.

The property market is starting to wake up and auctions returned over the weekend with 598 auctions reported to the REIV producing a solid but expected clearance rate of 82%. In addition, there were 709 private sales.

Whilst activity in the real estate market has commenced, it hasn’t been without disruptions and one could argue it has been a slow start to the year already.  It seems some people (potential vendors) took extended holidays due to the inability to have holidays in previous years which has delayed some properties coming onto the market.  Also there have been further delays due to the explosion of Covid case numbers with many people having to isolate at home and therefore making it impossible for selling agents to inspect properties to conduct sales appraisals.

We have learned to live like this for the past couple of years so it has done little to affect confidence in the property market, but it does make us realise that we could be in for another year of disruptions and no doubt properties with live campaigns may be forced to pause mid campaign due to occupants of the property having contracted Covid.

Domain have released their December 21 quarter median house price data with it showing that Melbourne’s property prices increased 5.8% to an all time high of $1,101,682.  Although, personally I felt there was a little slow down in the property market in December last year, there was no doubt some significant growth in October and November and therefore their data appears accurate.  Their data also showed an increase in property prices of 18.6% over the year and whilst this growth rate is not sustainable, with stock levels still on the low side and lot of confidence in the market, the signs are there that we should see some further growth in property prices throughout the year.  Interestingly, the median house price in Sydney is $1,601,467 which is considerably higher than Melbourne however Melbourne is predicted to have stronger population growth over the next five years so the price gap between the two capital cities could become smaller.

With most people back from holidays, the amount of properties on the market will start to rise.  If all things remain as they are now, we should be in for a very active six months in the real estate market across the board.

Have a great week.

Kim Easterbrook

There was another high auction volume weekend with 1,139 auctions reported to the REIV producing a clearance rate of 75% (same as last week).  591 properties sold at auction, 258 before auction and there were an additional 257 private sales.  The 75% clearance rate is a welcome relief to buyers (possibly only short term) as the heat in the property market eases.

The Australian Government Centre for Population released data last week predicting that Melbourne’s population is set to overtake Sydney within the next five to six years.  This is earlier than what was originally predicted, even with the pandemic hitting.  They have predicted that Melbourne will bounce back from the lockdowns quickly and population will start to rise again.  They also highlighted the huge property affordability issues in Sydney as one of the main drivers for the population growth.  This also should have a flow on effect into the larger regional towns of Victoria, for example, Geelong, Ballarat and Bendigo.  In due course, these population growth figures could add some further pressure on property prices, even with the predicted interest rate rises to come in a couple of years.

There has been some extraordinary sales in Albert Park over the past couple of months and another property went under the hammer on Saturday which sold well above the reserve price.  20 Moubray Street, Albert Park is a renovated, 4 bedroom, 2 bathroom, 1 car park, double fronted period home on 360 sqm of land.  The property was quoted $6,000,000 to $6,600,000 prior to auction.  Six bidders participated in the auction with the opening bid at the top of the quoted range.  The property sold for a huge $9,175,000 which was well above the vendors expectations.

Over in the western suburbs, 30 Coral Avenue, Footscray went under the hammer and was hugely contested with first home buyers being the main demographic wanting to secure the property.  Four bidders participated in the auction with the property selling for $1,216,000 which was well above the $1,095,000 it sold for in January this year.

This is the last market wrap for 2021 and from the whole team of the Elite, we wish you a very happy holiday season and we can’t wait to see you in 2022.

Kim Easterbrook

The clearance rate dropped to 75% over the weekend as a result of the increase in properties on the market.  1,116 auctions were reported to the REIV on the weekend with 600 selling at auction, 273 before auction, 1 after auction, 292 passed in and there were an addition 248 private sales.  Last week’s final results were 1,369 auctions producing a 79% clearance rate.

The current increase in properties has resulted in some hope for buyers that we are entering a more ‘balanced’ market where there are more properties on the market to assist balance out the demand.  Whilst that is welcoming news to buyers, we are still seeing some properties achieving big prices under solid competition from buyers.   We only have a few more weeks of stock levels until it significantly drops as we enter into the holiday period.

A huge auction at 76 Armstrong Street, Middle Park on the weekend which was a fully renovated, four bedroom, three bathroom period home on 650 sqm.  The price guide prior to auction was $8,000,000 to $8,800,000 but that was no guide for the bidders with the opening bid being $9,550,000 which was $750,000 above the top end of the range.  Two other bidders participated but it was the opening bidder who took home the keys for $9,800,000.

15 Thompson Street, Ormond was another auction that was hotly contested with the five bedroom brick home smashing its price guide of $2,100,000 to $2,300,000.  The property does have a unique design but still requires work.  It is located within the McKinnon High School zone which also added to the demand for the property.  The property sold for $2,880,000 at auction over the weekend.

Have a great week.

Kim Easterbrook

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