Elite’s Weekly Market Wrap
It seems that events are worsening daily as the amount of Covid-19 cases increases around the world. Governments are taking drastic measures to slow the spread of the virus as the World Health Organisation declared novel coronavirus a pandemic.
It’s for good reason people are concerned as we enter into a territory that we have never seen before. More and more people will be working from home, schools and child care centres may shut down in the weeks to come, international travellers now have to self quarantine for 14 days from arrival, events with over 500 people have been cancelled, and there will be more things to come.
So, what does this mean for Melbourne’s property market?
Surprisingly, the weekend brought people out in droves at auctions and open for inspections. The clearance rate did fall to 72% from a consistent 80% which was expected due to the negative news on Friday. For the time being, it is business as usual but we may see supply start to drop off quickly as many vendors are likely to hold off from selling and with interest rates so low, may even resort to just leasing their properties out. Another interest rate cut is also on the horizon which potentially could push prices even further.
We are likely to see a lot more off market transactions with vendors not committing to expensive marketing campaigns and potentially wanting to limit the amount of people going through their properties.
We may see a period of time where the industry comes to a grinding halt. We are all hopeful with strict measures that are presenting themselves daily, that this will pass and pass quickly as possible.
Keep well everyone and have a great week!
Melbourne | 16 March 2020
This week: 869 Auctions | Clearance: 72% | Last Year: 57% [source: REIV]
Auction of the week
25A Salisbury Street, Moonee Ponds
In an ideal location within Moonee Ponds, this 6 year old townhouse attracted multiple bidders, even with the covid-19 uncertainty. An opening bid of $1.5m was on the mark, however, another 5 bidders wanted their day in the sun, and all fought it out until the hammer came down at a healthy $1.735m. The property sold approximately $200,000 over the reserve price.
The bidders consisted of young professional couples, young families as well as a couple of buyers’ advocates.
Rental Property of the week
5/25 York Street, St Kilda West – $470
Located in the sought after area of St Kilda West this inviting two bedroom property comprises a central living/dining area, two double bedrooms with built-in robes, contemporary kitchen featuring stone benches, stainless steel appliances and pull out dish-washer and a fully tiled, stylishly appointed bathroom. Also with under-cover balcony and allocated car parking. The apartment will be freshly painted throughout.
Just a short stroll away from public transport, shops and restaurants. Be in quick before you miss out on this gem.
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