Melbourne Auction Results – March 2nd
The Melbourne property market passed a major test over the weekend on substantial sales volumes. This week marks the highest point in auction activity for the year to date.
1243 auctions were reported to the REIV for a clearance rate of 79%. APM reported a clearance rate of just over 80%. The top auction suburbs this year are South Yarra (43 auctions), Reservoir (42 auctions) and Bentleigh East (33 auctions). There will be fewer auctions next weekend (317) due to the Labour Day public holiday. (REIV)
Clearance Rate: 79%
Reported Auctions: 1243
Sold at Auction: 816
Passed in: 265
Sold Before: 162
Sold After: 0
Auction Volumes: $874.96m
Last Weekend: 973
Last Year: 1175
Houses: 83%
Units: 71%
Melbourne Property Market Passes Big Test Over the Weekend!
If you have been following my commentary over the past few weeks, you would have sensed that confidence in the property market has been building in Melbourne since the Reserve Bank cut interest rates by 0.25% to 2.25%. Melbourne’s property market has certainly received a shot in the arm as consumer confidence has increased.
Not only is property back on the agenda for many people but what I am seeing can only be described as frenzied panic buying. It seems buyers who have sat on the sidelines hoping for the property market to collapse have made the decision to take the plunge, in turn lifting clearance rates and prices in many areas.
On The Street
Proof of the current “hot” market was witnessed at 10 Della Torre Crescent, Ivanhoe this weekend. In front of a crowd of 60 onlookers, bidding for this original 3 bedroom home was ultimately fought out in the end by two bidders who pushed the price all the way to $1.595m. This time last year, a similar house at 13 Della Torre Crescent sold for significantly less at $990,000 and it was renovated.
The agent described 10 Della Torre Crescent as a 4 bed by converting the dining room to a bedroom, not too sure about that. You would be crying if you were the vendor of number 13, seeing the market up by 50% in just one year. Has the market risen that much?
10 Della Torre Crescent / Photo Source: Miles Real Estate
Was this result a one off? No, this is the second time I’ve seen such an increase the last two weeks. Barry Plant Doncaster sold a property at 7 Mintaro Crt Templetowe for $1,211,800 last week. A really interesting thing about this sale was that the vendors had only purchased the property a year earlier for $840,000 and hadn’t done any work at all to the property.
This from Marshal White after Saturday’s results:
Our company had its biggest auction day ever with record numbers going under the hammer – not only did we break this record, but also the dollar value of sales, being our biggest single sales day in the company’s history. As we have seen right from the outset this year, the depth in the market is exceptionally strong providing some extraordinary results for our vendors.
A more sober outlook from Biggin Scott Elsternwick, ”there has certainly been a lift in the number of inspections and the number of bidders but this has not been the case for all properties”, Mr Stafanis said. “I wouldn’t call it a hot market just a good market at the moment”. This despite his office recording a 100% clearance over the weekend.
Two More Things
I’d like to mention two big news items from last week.
Firstly, the proposed “foreign buyers tax” being mooted by the government. Foreign buyers are to be slugged $5,000 for any property purchase up to $1mil and then, for property valued over $1mil, $10,000 per $1mil. There is also a new regulation being considered around how many apartments can be sold to foreign buyers in a new building development. Penalties such as jail for breaking the law are to be enforced. Although many are saying it will be a catastrophe for new developments, I’m not so sure. I guess we will have to wait and see.
Secondly, all eyes will be on the Reserve Bank again this week as they prepare to meet on Tuesday to discuss what’s on everybody’s lips – interest rates. Another cut could see Melbourne’s real estate market really light up. Stay tuned and make sure you know your values in this market if you are buying or selling and speak to us for some unbiased professional advice.
Top 5 Houses
- 136 Page Street, Middle Park $5,500,000
- 38 Kooyongkoot Road, Hawthorn $5,085,000
- 266 Cotham Road, Kew $3,610,000
- 146 Yarrbat Avenue, Balwyn $3,500,000
- 29 Myers Avenue, Glen Waverley $3,308,800
Top 5 Bargain Houses
- 1A Dartford Court, Craigieburn $277,500
- 155 Morris Road, Hoppers Crossing $282,500
- 32 Ovens Circuit, Whittlesea $290,000
- 9 The Glen, Pakenham $301,000
- 14 Kimberley Grove, Pakenham $315,000
Top 5 Apartments
- 1/2A Ormsby Grove, Toorak $1,755,000
- 20-22 Setani Crescent, Heidelberg West $1,640,000
- 8.1/193 Domain Road, South Yarra $1,610,000
- 3/5 Thomson Street, South Melbourne $1,531,000
- 11/243 Beaconsfield Parade, Middle Park $1,485,000
Top 5 Bargain Apartments
- 3/39 Ovens Circuit, Whittlesea $180,000
- 2/232 Nicholson Street, Footscray $200,000
- 7/230 Ascot Vale Road, Ascot Vale $250,000
- 5/24 Daly Street, Brunswick $260,000
- 4/21 Nepean Avenue, Hampton East $267,000
Source: REIV
