Melbourne’s auction clearance rate remained steady at 71% even after the RBA’s announcement of another interest rate hike. 724 auctions were reported to the REIV with 377 selling at auction, 150 before auction and 207 passing in. Interestingly, there were only 99 private sales recorded which is low for this time of year where off market activity is usually higher. In comparison, there were 802 auctions on the same weekend last year resulting in a clearance rate of 69%.
This week’s interest rate rise was another blow to mortgage holders however it should have come as no surprise. It was likely that we were going to see another before the end of 2023. What we weren’t expecting was that it is likely there may be another interest rate rise in December or February next year.
At this stage, the rate rise has had little effect on the auction clearance rate which has remained steady in low 70’s for a number of weeks. This reflects a balanced market. With rents rising, it is becoming more important that people have a roof over their head that they own and as a result, buyers are still transacting.
What might happen as a result is a drop in stock levels as some vendor’s are becoming increasingly cautious about selling their property in a market with rising interest rates. I have heard numerous reports of vendors who were thinking about launching their properties this week, now holding off until February. On the flip side of this though, we might see another flurry of investors selling their properties to cash in their equity and pay debt their owner occupied debt. This will as a result put further pressure on rental prices.
Population growth and demand though is holding prices high and I believe will continue to do so. Whilst we have high levels of immigration, it is highly unlikely we will see any sort of housing crash due to rising interest rates.
A couple of auction results from the weekend, one being 20 Fairy Street, Ivanhoe. A property that sold well above reserve but one that was special and rare due to its location. The property was located in one of the best streets in the area and in a very tightly held pocket. The four bedrooms, two bathroom property was quoted at $2,800,000 – $2,900,000 prior to auction. A large attendance at the auction with a number of bidders not putting up their hand. Three bidders drove the price to $3,470,000 which sold approximately $500,000 above reserve.
A three bedroom townhouse in Port Melbourne was in demand with the well presented, three bedroom, two bathroom, one carport property attracting three bidders at its auction. The property sold for $1,605,000 which was $105,000 above its reserve.
Have a great week!
Gold Coast Property Market Update
There is still plenty of activity at open for inspections for both houses and apartments on the Gold Coast. Unlike the southern states, the demand for apartments is high as there are many buyers looking to have an escape from the colder winters down south thus purchasing an apartment to enjoy the mild winters offered on the Gold Coast. Broadbeach to Burleigh Heads proving to be popular destinations.
Northern Gold Coast suburbs like Helensvale, Coomera, Pimpama, and Ormeau are expected to be the most sought-after in 2024 for houses. With a median house price of $1.08 million in Helensvale and an array of local amenities, such as Westfield Shopping Centre and excellent transportation links, these suburbs offer promising investment potential.
According to CoreLogic, Brisbane and Gold Coast property prices have had strong growth increasing by 3.8% for the September quarter.
The Gold Coast property market, which is closely intertwined with the local employment market, has had and will continue to have a significant impact on the Gold Coast housing supply. The growth of key industries such as tourism, hospitality, health care, construction, and the film industry has created numerous job opportunities, which in turn has driven demand for housing and influenced property prices.
Jenni Wright – Senior Buyer’s Agent (Gold Coast)