Melbourne Auction Results – February 17, 2014

By Peter Sarmas on 17 Feb 2014
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Melbourne Auction Results 10th February – 16th February 2014

71%
Clearance
Rate

620
Reported
Auctions

Sold at Auction: 344 Auction Volumes: $311.1m
Passed in: 177 Weekend Last Month: N/A
Sold Before: 99 Weekend Last Year: 71%
Sold After: 0 Houses: 75%
Unreported: 0 Units: 67%

 

Unemployment Rate Climbs but Melbourne Property Buyers Absorb Higher Stock Levels

Unemployment figures released last Thursday showed a rise from 5.8 per cent in December 2013 to 6.0 per cent in January 2014, which means unemployment levels are now above the 5.9 per cent reached during the GFC.

More concerning is that joblessness in Victoria is now at 6.4 per cent, its highest level since January 2002.

Many economists predicted that unemployment would peak at 6.0 per cent in 2014; however, this level has already been reached, which could mean more pain for the labour market in the short term.

According to the statistics released, those employed are also working longer hours, a sign that employers are currently choosing to utilise existing staff rather than employ new staff.

“..the only warning I have is a slight uptick in the auctions being negotiated prior to.”

These latest figures would certainly give the Reserve Bank much reason to leave rates on hold for the time being.

Inspite of the gloomy job data, some encouraging news came from the recent NAB Business survey as it showed that business confidence is on the rise. It is hoped that this renewed confidence, together with some better than expected profit results, will help boost our ailing employment sector

What’s Happening in the Melbourne Property Market?

Monique Sassoon of Wakelin Property Advisory sees three distinct markets in Melbourne: new units, established properties and housing estates located on the city’s outskirts.

Ms Sassoon pointed out in an article for the Age over the weekend that “you can’t talk about the market as a whole any longer”, while expressing concerns that there is an oversupply in the apartment market as well as areas heavily reliant on car travel, which would impact values in both segments. 

At the top end, Kay and Burton reported interest in the multi-million dollar market has accelerated significantly, mainly due to the weakening Australian dollar attracting overseas buyers.

In what’s usually a quiet month for real estate, January delivered an extraordinary number of top end inner city sales purchases, by what Kay and Burton described as a “new wave of buyers”.

Unemployment adds strain to economy

Latest unemployment rate of 6 per cent adds strain to the economy Photo: reynermedia

Data providers APM and RP Data both noted higher stock levels in Melbourne. APM suggested listings were up by 17 per cent than for the same time last year; while RP Data reported that compared with Sydney, Melbourne had 10,000 more properties listed, showing the disparity between the two cities.

Melbourne’s real estate market continues to show its strength by being able to absorb the high number of listings. Both agents and advocates report an increase in the willingness to negotiate prior to and after an auction has passed in.

Contrasting Auction Experiences Highlight Differences in the Melbourne Property Market

By speaking to a number of buyers’ agents over the weekend, we have been able to get a feel for the Melbourne market.

Kim Easterbrook from Elite attended auctions in Prahran, Northcote and Collingwood on Saturday, and she witnessed big crowds and strong bidding. She said that all auctions attended over the weekend sold at 10-20 per cent over the reserve.

“…while areas can do well, specific properties have to offer some kind of mainstream appeal in order to attract strong number of competing bidders.

Catherine Cashmore attended two auctions in Bentleigh and, like Ms Easterbrook, she witnessed good buyer numbers and strong bidding. Both properties sold also exceeded their reserve price.

According to Ms Cashmore, there has been a slight shift in the market. “The only warning I have is a slight uptick in the auctions being negotiated prior to. This might be an indication that agents are sensing a slight risk that the market may not reach the vendors’ expectations,” she said.

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A contrasting view on the Melbourne property market over the weekend was presented by Buyer Advocate Cate Bakos, who had a somewhat different experience at an auction in Fitzroy North.

“The property didn’t suit everyone and this was reflected in the crowd not being huge and bidding not fierce,” she said. 

The property was passed in to Ms Bakos, who subsequently negotiated for a sale just below the top end of the quoted range.

Highlighting the differences in the current property market, Ms Bakos said that “while areas can do well, specific properties have to offer some kind of mainstream appeal in order to attract strong number of competing bidders.

Of the 620 auctions reported to the REIV this weekend, 443 sold, reflecting a clearance rate of 71 per cent; a 3 per cent increase on last week’s result.

Next weekend there are 1320 auctions expected to go to market.

APM Melbourne Weekend Auction Results – Week Ending February 17, 2014
(please see attached)

Top 5 Houses

1. 9 Asling Street, Brighton $2,966,600
2. 15 Victoria Street, Sandringham $2,225,000
3. 45 William Street, Mount Waverley $2,180,000
4. 107 Page Street, Albert Park $1,980,000
5. 14 Balmerino Avenue, Toorak $1,915,000

Top 5 Bargain Houses

1. 41 Bridgeford Crescent, Melton South $175,000
2. 18 Pyalong Crescent, Dallas $285,500
3. 3 Melville Road, Craigieburn $302,000
4. 25 Lynne Street, Lalor $320,000
5. 17 Ivanhoe Avenue, St Albans $327,500

Top 5 Apartments

1. 5 Haydens Road, Beaumaris $1,440,000
2. 50 Rowell Avenue, Camberwell $1,400,000
3. 1/6 Scarborough Grove, Beaumaris $1,270,000
4. 40 Rusden Street, Brighton $1,208,000
5. 1/7 Gellibrand Street, Kew $1,190,000

Top 5 Bargain Apartments

1. 5/182 Mt Alexander Road, Travancore $185,000
2. 3A/40 Godley Street, Reservoir $244,000
3. 6/9 Baker Street, Richmond $265,000
4. 20/470 Punt Road, South Yarra $272,000
5. 1/21 Ranfurlie Circuit, Melton West $285,000

Source: REIV

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or via email at [email protected]

About the Author

Peter Sarmas is a Certified Property Investment Advisor (PIAA) and Vendor/Buyer Advocate. Before becoming the founder of Street News, Peter completed a Degree in Applied Science (Chemistry) and a Graduate Diploma in Property Valuations (Hons). Peter believes property investing is a major and potentially risky undertaking. In his view, everyone should have an independent person acting on their behalf when seeking property investment advice.

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