As reported to the REIV, the clearance rate slightly dropped over the weekend to 73%. 618 auctions were held of which 451 properties sold and 167 passed in. 86 of these passed in on a vendor bid. The next two weeks will be quieter for both new listings and auctions due to the football finals and school holidays with a very minimal amount of auctions being scheduled for the AFL Grand Final weekend.
We are currently in a two-speed market where houses are generally selling under strong competition. If the property is renovated, well located, has a good floorpan and a sizeable backyard, these are the ones that are most highly sought after. If the property needs some work, some buyers are still a little reluctant to pursue these due to the unknown in what the renovation will actually cost. Overtime, as building costs stabilise, this should start to turn with more buyers willing to purchase them.
Villa units, due to the entry level price point for a property with some land are performing really well, and are under strong demand. We believe this will continue to the be the case into the future. Good quality apartments (being large, renovated, well located, with car parking) are selling well but apartment buyers are particularly fussy at the moment due to the increase in stock on the market and the choice available.
42 Chivalry Drive, Glen Waverley went to auction on the weekend and was quoted $1,350,000 to $1,450,000 prior to auction. Strong bidding by 5 parties with almost all of them being Chinese buyers (a busy segment of the market again) with the property selling for $1,707,000. The property was announced on the market at $1,700,000 however it is likely the auction had reached the reserve prior to this.
22 Percy Street, Hawthorn was another popular property that went to auction on Saturday. The pretty four bedroom, two bathroom, two car park renovated Victorian was quoted for $2,700,000 to $2,900,000 prior to auction and attracted three bidders at the auction. A strong opening bid of $3,000,000 no doubt knocked out some other potential buyers from the auction. The property sold under the hammer for $3,270,000.
Have a great week!