Melbourne Auction Results – March 30th
Buyer preference was reflected in the clearance rates this weekend, with houses (82%) stronger in demand than apartments (67%).
A clearance rate of 79 per cent was recorded this weekend compared to 76 per cent last weekend and 69 per cent this weekend last year. There were 1291 auctions reported to the REIV today, with 1014 selling and 277 being passed in, 122 of those on a vendor bid.
It has been a busy start to the year with more than 7,000 auctions held in the year to date. The annual clearance rate at 77 per cent is the highest since 2010 and evidence is emerging that this market has surpassed the strength seen in the last Melbourne property boom experienced at that time.
Melbourne’s East and Inner South witnessed the strongest clearance rates and prices under auction conditions, a trend which has been evident this year.
Clearance Rate: 79%
Reported Auctions: 1291
Sold at Auction: 810
Passed in: 277
Sold Before: 203
Sold After: 1
Auction Volumes: $958.02m
Last Weekend: 1205
Last Year: 1230
Houses: 82%
Units: 72%
Changing Demographics mean Different property Needs
The recent release of the intergenerational report and demographic data by the Australian Bureau of Statistics highlights the changing landscape of our population, which in turn will impact our housing market.
According to the latest findings, Australians will continue to live longer. Male life expectancy is set to rise from 91.5 to 95.1 by 2055, while female life expectancy will rise from 93.6 to 96.6. This projected increase in age together with a population rise to 40 million by 2055, will mean a considerable change in the way people live.
There certainly will be more pressure on housing, in particular, demand for smaller dwellings like one and two bedroom properties and apartments
Household numbers are expected to increase by a further 4.3 million over the next 25 years, with people living alone a significant driver as a result of our ageing population, the rise in single person households and childless couples.
So what does this mean for the property market? There certainly will be more pressure on housing, in particular, demand for smaller dwellings like one and two bedroom properties and apartments. Demand for smaller type dwellings will jump as the median age increases to 40.1 in 2036 up from 37.2 in 2011. The lack of single level villa units in inner Melbourne is staggering, I hope councils rethink their policy and allow a higher density development of these type of properties.
An ageing population and lack of infrastructure investment by both Federal and State Governments will also see demand for housing, concentrated around the main 3 cities – Melbourne, Sydney and Brisbane. Without future government incentives many First Home Buyer’s won’t be able to afford a new home while the elderly will struggle to keep their current home.
On The Street
In front of a crowd of about 30 people we managed to secure an original home for our buyers in Rosanna after being in the one family for 67 years. Located in one of the best street locations the bidding started typically with no one putting their hand up and the agent having to resort to a vendor bid at $690,000. Our numerous attempts at offering a $5,000 bid were rejected by the agent and at half time and $710,000 the property was yet to hit the market. After an exchange of $10,000 bids the property was called on the market at $745,000 then began to build momentum finally finishing at $819,000.
Photo Source: RealEstate.com.au
What The Agents Are Saying
Most of the auction activity I witnessed in the North and East was strong with houses outperforming units and apartments. Despite the fact that Melbourne looks like it’s in the midst of a property boom real estate agents are still seeing a bias from buyers towards “A Grade” properties. A growing confidence from first home buyers wishing to enter the property market appears to be gaining momentum, especially for those under the $600,000 price bracket.
Marshall One Agent Ben Kenyon was surprised to see the result of a single front dilapidated home quoted at $490,000 make $300,000 over reserve. The interesting thing about this property was that it was on one of the busiest roads in Melbourne, 378 Punt Rd, South Yarra! My personal experience with main road properties is that they have always been a nightmare to sell??
Top 5 Houses
- 25 Montclair Avenue, Glen Waverley $3,900,000
- 191 Gore Street, Fitzroy $3,580,000
- 12 Swinton Avenue, Kew $3,450,000
- 41 Tower Road, Balwyn North $3,450,000
- 84 Kinkora Road, Hawthorn $3,160,000
Top 5 Bargain Houses
- 2 Casey Avenue, Sunbury $271,500
- 164 Gap Road, Sunbury $278,500
- 7 Seventh Avenue, Rosebud $295,000
- 2 Heyington Boulevard, Carrum Downs $325,000
- 26 Epstein Street, Reservoir $330,000
Top 5 Apartments
- 4 Corhampton Road, Balwyn North $1,900,000
- 6 Balmoral Avenue, Kew $1,711,000
- 4/156 Beaconsfield Parade, Albert Park $1,670,000
- 4/2 Male Street, Brighton $1,650,000
- 103 Carpenter Street, Brighton $1,600,000
Top 5 Bargain Apartments
- 3/45 Oakleigh Road, Carnegie $230,000
- 14/11-17 Park Street, St Kilda West $230,000
- 3/95 Dawson Street, Brunswick $260,000
- 6/231 Dandenong Road, Prahran $275,000
- 2/68 French Street, Lalor $280,000
Source: REIV
