Melbourne Auction Results – April 20th
Melbourne’s auction clearance rates are at highest levels since the last property boom in 2010.
A clearance rate of 79 per cent was recorded this weekend compared to 75 per cent last weekend. There were 1060 auctions reported to the REIV, with 835 selling and 225 being passed in, 117 of those on a vendor bid.
Auction sales have continued to trend upwards over the year to 15 April 2015. The top clearance rate suburbs in the year to date with 30 or more auction sales were Wantirna (97 per cent), Ringwood (96 per cent) and Brighton (93 per cent).
Clearance Rate: 79%
Reported Auctions: 1060
Sold at Auction: 692
Passed in: 225
Sold Before: 141
Sold After: 2
Auction Volumes: $668.28m
Last Weekend: 639
Last Year: 58
Houses: 80%
Units: 77%
Melbourne Auction Clearance Rates at Highest Levels
According to figures from APM, the Melbourne market generally looked very strong with only the South East showing clearance rates below 70% for houses. The inner South and outer East had clearance rates above 90% for houses over the weekend. Units also fared well, again in the same areas, both recording above 90% clearance.
Everyone appeared to be out in full force this weekend with the decision to secure a home, anyone sitting on the sidelines has now taken the plunge. Suburbs showing the greatest strength in price growth are those in most demand, pretty simple! Melbourne’s auction clearance rates are now at their highest levels since the strongest market conditions back in the last property boom in 2010.
From my experience, agents are struggling to price properties in some markets because of the short supply and such high demand. A case in point was a property we visited in Waterdale Rd, Ivanhoe which was quoted at “offers above $1.04mil”. To say there were a few interested parties is an understatement, the 2 bed original and charming Californian Bungalow was packed with potential buyers, 10 of which had expressed interest in making an offer according to the agent, after only being a week on the market. The agent infomed us of $100,000 increase in the quote price the following day and an impending sale.
Another area we have been searching in is Elsternwick which until last week had been starved of property for a number of months. We have witnessed at least 3 off market deals at the vendor’s asking price, buyers are that keen to get into this area. In case you might be wondering, all these properties needed work but that doesn’t seem to be deterring anyone at the moment.
So yes, the Melbourne market is very strong at the moment and there is no let-up in demand. Low interest rates have spurred the whole property market. Downsizers are cashing in, upgraders are making the move to bigger homes and investors and “flippers” are speculating on more capital growth to come.
On the economic front briefly, there was really good news last week on the jobs front with unemployment levels falling from 6.2 per cent to 6.1 per cent with job participation increasing. For those interested in our own back yard, Victoria saw 10,000 jobs added to its workforce, good news! As a result, rates look like they will be on hold in May.
Photo Source: RealEstate.com.au
On The Street
Now I’m no property expert but I do try to follow it and the economy closely to see any emerging trends which will assists my cleints. I’ve had so many people ask me of late, “Pete, what do you think is going to happen to the property market?” In short, homes in the inner suburbs should be okay and continue to grow in value at least til the end of this year. The growing risks are still with inner city apartments and in outer suburban areas 20 km out from Melbourne’s CBD abutting greenfield land and with high investor concentration. If there is a correction, these are the sectors and areas which will come under the most pressure.
May looks like being another strong month with listing numbers building and demand remaining strong. Stock levels are expected to tighten as we head into June, we are unlikely to see any relief until October. There does not appear to be any signs of a slowdown in the Melbourne’s property market in the short term.
What do the latest numbers tell us? Up until yesterday, Sydney home values were up 6.6 per cent for the year while Melbourne is up 5.1 per cent.
Final Word
If you are looking for an area to buy your next investment property or a home to live in, and you find the choice is huge, choose a suburb where supply is limited, this is your best chance for capital growth.
Top 5 Houses
- 44 Suffolk Road, Surrey Hills $3,370,000
- 15 Kildare Street, Hawthorn East $2,800,000
- 37 Medina Road, Glen Waverley $2,486,000
- 63 Rushall Crescent, Fitzroy North $2,250,000
- 3 Westfield Drive, Doncaster $2,225,000
Top 5 Bargain Houses
- 8/29 Eldridge Street, Footscray $263,000
- 5/14 Kelvinside Road, Noble Park $268,000
- 76 Macedon Street, Sunbury $270,000
- 15 Kynoch Street, Deer Park $300,000
- 21 Highbury Circuit, Craigieburn $307,000
Top 5 Apartments
- 400 Beach Road, Beaumaris $2,830,000
- 4/32 Walmer Street, Kew $1,890,000
- 157 Were Street, Brighton $1,525,000
- 9 Fourth Street, Black Rock $1,513,000
- 1/3 Rangeview Grove, Balwyn North $1,510,000
Top 5 Bargain Apartments
- 25/31 Smith Street, St Kilda $143,000
- 7/10 Heather Avenue, Brooklyn $245,000
- 14/441 Brunswick Road, Brunswick West $258,000
- 11/158 Napier Street, Essendon $280,000
- 23/470 Punt Road, South Yarra $280,000
Source: REIV
