Auction numbers down which means some tough competition for buyers, as 573 properties were auctioned this weekend. A clearance rate of 77 per cent was achieved, with 441 properties selling and 132 being passed in, 60 of those on a vendor bid. There were an additional 315 private sales reported.

Last week’s decision by the Reserve Bank to again cut interest rates to a record low of 1.5 per cent has become a key driver of a strong auction market. These lower rates for mortgage holders will indeed increase buyer confidence as we head into the spring market.

Auctioneers have seen a turnaround in the market recently with less need for vendor bids, and more enthusiastic starts at auctions, particularly in highly sought after areas.

Stock levels are expected to remain relatively low for the next 6 weeks, until the spring market begins to gain momentum


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16 Linda Street, Coburg. Sold for $953,000
This renovated two bedroom Victorian family home with high ceilings, polished floorboards and a charming landscaped front yard, attracted six hopeful buyers amongst the 80-strong crowd. With a price range of mid to high $700,000s, the opening bidder believed that their $820,000 offer would be enough to win them the keys, but all it did was immediately put the property on the market. It was a fast-paced auction, and one of the last two entrants after $900,000 eventually became the new owner with a final bid of $953,000.


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89 Raglan Street, Port Melbourne. Sold for $1,502,000
A dilapidated Victorian shop presented a blank canvas for buyers to create whatever home they wish to live in, only a short stroll to the Bay Street shopping and cafe precinct, North Port light rail station and the beach. A crowd of 110 watched as auctioneer took bids from six bidders, as the price sailed past the reserve of $1.1 million. It was a very determined couple with a baby who took the keys with their final bid of $1,502,000. They plan to make the property habitable, before renovating it fully in the coming years.


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4/113 Cecil Street, Fitzroy. Sold for $810,000
With a price guide of $650,000 to $700,000, it’s little wonder this two bedroom loft-style apartment with sensational city views attracted a crowd of young prospective buyers. An opening bid of $650,000 from a man bidding for a young woman sparked $10k rises from four bidders. At $740,000 the property was on the market and fast competition continued. But it was the original bidder who held on, winning the keys for the young woman who was elated and surprised by the result.

Buyers were out in large numbers on the final weekend of the financial year. A clearance rate of 79 per cent was achieved from 181 auctions this weekend, with 133 properties selling and 48 being passed in, 15 of those on a vendor bid. There were an additional 370 private sales reported.

Restrictions to negative gearing tax concessions on new properties may have seen us with a different result last Saturday, if they had have come into effect. As it happens investor activity is up and clearance rates have hit a new high for the year (79 per cent). This is the highest since June 2015 and shows a marked improvement in auction results. With the Australian Bureau of statistics reporting an increase on investor lending by 17.3 per cent over May (compared to April this year) investors certainly seem more confident post-election and the trend looks set to continue.

Lower levels of stock are creating strong competition at auction and private sales are experiencing shorter days on market (according to several outer suburban agents) over the last few weeks. In particular the Northern suburbs are booming where home owners and investors alike are lining up to get a foot in the door. Buyers in the West are also very active with suburbs such as Seddon, Footscray West and Yarraville leading the way.


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45 Black Street, Brighton. Sold for $1,500,000
A single level 3 bedroom period home in highly sought after location close to Church Street shopping strip, Brighton Primary and leading private local schools attracted five bidders to the auction. The Art Deco house last changed hands in October 2014 for $998,000. Its value swelled by a staggering $520,000 under the hammer on Saturday. It sold to a local investor, who plans to rent the property out.


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374 Richardson Street, Middle Park. Sold for $1,130,000
Located in one of Middle Park’s finest tree-lined streets this single fronted unrenovated brick Victorian house in triple ‘A’ location, is unliveable in its current condition and offers plenty of opportunity. A crowd of 80 watched on as the auctioneer opened with a vendor bid of $900k, followed by a man offering $10,000 more, before two other bidders joined in. The two bedroom plus study house, on approximately 144sq.m, was announced on the market at $1 million, and sold for $1.13 million. The final price was $130,000 more than the vendor would have been happy accepting.


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180 Station Street, Port Melbourne. Sold for $1,402,000
Double fronted and free-standing, this inviting three bedroom period home is only a short walk to Bay Street, and easy to travel by nearby tram or bike track to the city. Six would-be buyers put their hands up to attempt to buy the property which had been owned by the one family for about 20 years. The auctioneer started with a vendor bid of $1.2 million, which prompted another man to join in with his first bid of $50k. It didn’t take long to be on the market at $1.28 million. The buyer, who currently rents a property only a few doors down, outbid the competition by paying $138,000 over the reserve.

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