Melbourne Auction Results – February 23rd

According to the REIV, by the end of February, more than 3,000 homes are expected to have been auctioned, which is about 500 more than February last year.

There was certainly a lift in auction numbers this weekend in Melbourne when 826 properties were put to the test over the weekend. 631 sold to generate a clearance rate of 76 per cent. This was a significantly higher volume than the 552 properties auctioned last weekend and and a lift in clearance rates from a revised 72 per cent.  The auction clearance rate for houses was stronger at 81 per cent than for units at 71 per cent.

Supply and Clearance rates Lift on Chinese New Year

Although the number of property auctions held over the weekend across Melbourne were much lower than for the same time last year – 1224. This weekend’s large number of auctions marks the first major auction weekend of the year, with a further 1470 auctions expected next weekend. A number of agents are saying more stock is set to hit the market as vendors undertake prparations for their sale.

According to the REIV, by the end of February, more than 3,000 homes are expected to have been auctioned, which is about 500 more than February last year.

The inner city was the most popular area for auctions this weekend with 171 scheduled followed by the inner south with 142, the west 129, the inner east 119, the north east 113, the north 79, the outer east 72 and the south east 45. (APM)

I read a couple of interesting articles last week that i felt were worth mentioning. The gist of the both stories was the recent rapid rise in property prices creating unaffordability inner city and creating “generation rent”. Taking into account the amount of deposit required (20 per cent) to buy a property in Melbourne which has median house price of $669,000 (REIV), it’s no wonder there are genuine concerns. A first home buyer would need close to $150,000 with costs for a 20 per cent deposit plus stamp duty. I haven’t included any government grants in my calculations as they fall away considerably beyond the $600,000 mark.

Sydney median house prices to reach $1.84 million by 2024, $9.45 million by 2044 and a staggering $48.5 million by 2064.

So most first home buyers are being forced to look at apartments, an investment property first or cheaper house and land packages in Melbourne’s outer suburbs. Property price increases of 16 per cent in Melbourne and 30 per cent in Sydney over the past two years has some commentators predicting median house prices in Sydney to be worth $50 million by 2064.

The basis of their prediction is an average rate of 8.52 per cent price growth per annum, a low interest rate environment, population growth and undersupply. They predict Sydney median house prices to reach $1.84 million by 2024, $9.45 million by 2044 and a staggering $48.5 million by 2064.

On The Street

I was out and about in the North East this weekend and in the South East looking at property.

Property inspections for family homes over the $1million mark were strong whether the property had the right sunlight orientation or was in the right street didn’t really matter, demand was buoyant.

Real estate agent Zeno Kobica from Scott Banks RE sold a one bedroom cottage over the weekend at 109 Ashworth St Albert Park for a staggering price. In front of a crowd of 60, two bidders fought it out only for the property to be passed in at $850,000. Subsequent negotiations saw the final price achieved for the home at $880,000, quite a result.

Inspections for family homes over the $1million mark were strong whether the property had the right sunlight orientation or was in the right street, demand was just there no matter what.

This weekend we targeted and managed to secure a one bedroom unit with balcony located at U4/37 Hoddle St, Elsternwick only 100 meters from the Glenhuntly shops and tram. In the 37 degree heat agent Bill Stavrakis of Biggin Scott Elsternwick struggled to extract bids from the small gathering. Unrenovated and in desperate need of updating being in the same hands for 26 years, the property clearly had potential as the most recent sale in the block sold last year for $347,000.

Four bidders pushed the price beyond its reserve of $330,000 finally selling to our client for $335,000. With a bit of paint, carpet and a clean our lucky investor can expect a return of over 4 per cent in an area where vacancy rates are sub 2 per cent. A great outcome!

Photo Source: Domain.com.au

Top 5 Houses

1. 31 Cosham Street, Brighton $6,050,000
2. 20 Madden Street, Balwyn North $2,708,000
3. 73A and 75 Tower Road, Mount Eliza $2,600,000
4. 36 Bourne Road, Glen Iris $2,540,000
5. 165 Ashworth Street, Middle Park $2,430,000

Top 5 Bargain Houses

1. 28 Hurlingham Way, Craigieburn $316,000
2. 45 Ross Street, Dandenong $317,000
3. 22 Seacrest Avenue, Seaford $328,000
4. 7 Bembridge Mews, Craigieburn $330,000
5. 5 Jesson Crescent, Dandenong $337,000

Top 5 Apartments

1. 4/12 St James Park Drive, Brighton $1,945,000
2. 1/6 Stanley Street, Brighton $1,506,000
3. 28B Well Street, Brighton $1,420,000
4. 5/94 Charles Street, Ascot Vale $1,340,000
5. 1/10 Rushall Street, Fairfield $1,265,000

Top 5 Bargain Apartments

1. 5/90 Roberts Street, West Footscray $181,000
2. 6/7 Jepson Street, Yarraville $225,000
3. 11/7 Hatfield Court, West Footscray $255,000
4. 6/41 Cumming Street, Brunswick West $264,500
5. 3/30 Eldridge Street, Footscray $270,000

Source: REIV