Melbourne Auction Results – March 11, 2014

By Peter Sarmas on 11 Mar 2014
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Melbourne Auction Results 3rd March – 10th March 2014

71%
Clearance
Rate

238
Reported
Auctions

Sold at Auction: 143 Auction Volumes: $114.21m
Passed in: 69 Weekend Last Month: 67%
Sold Before: 26 Weekend Last Year: 62%
Sold After: 0 Houses: 74%
Unreported: 14 Units: 61%

 

Auctions Don’t Halt for Long Hot Summer

Over the hot long weekend only 233 auctions were reported to the REIV.

Of those, 166 sold, while 67 passed in; 34 on a vendor bid.

Although the numbers were lower and the weather wasn’t conducive to large crowds, a clearance rate of 71 per cent was recorded, compared to 73 per cent last weekend and 62 per cent this weekend last year (REIV).

“Traditionally, [April] is a month when property listings begin to slow down.”

Melbourne’s inner east and inner south were the standout performers in terms of clearance rates.

March represents the last month for high property stock levels as vendors try to beat the April school holiday period. Traditionally, it is a month when property listings begin to slow down.

Interest Rate Decision Fails to Surprise

Last week when the Reserve Bank met, they left official interest rates on hold at 2.5 per cent, as expected.

Research house RP Data saw the Bank’s reasoning as upbeat:

“From a housing market perspective, the Reserve Bank would be viewing the strong market conditions as a positive scenario which has driven investment in dwelling construction. In turn, this provides a very healthy multiplier effect for the domestic economy.

“More housing market activity has translated to greater developer confidence and a consistent upwards trend in new building approvals.”

Flood of New Apartments to Impact CBD Suburbs

There has been increased competition among banks and institutions vying to win mortgage business from consumers. Banks are lending up to 95 per cent, while lending for property development has relaxed somewhat over the past few months.

This, coupled with the latest round of building approvals announced by Planning Minister Matthew Guy, will result in a substantial flood of new apartments in the inner CBD and surrounding suburbs.

“Next week the auction market resumes where it left off.”

As I have said before, this will have a serious impact on the value of these types of properties. It will also affect these areas’ demographic make-up, their vacancy rates and the rental returns on new and established properties.

Next week the auction market resumes where it left off. Over 900 properties are set to go under the hammer.

APM Melbourne Weekend Auction Results – Week Ending March 11, 2014
(please see attached)

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Top 5 Houses

1. 16 Dundas Place, Albert Park $2,172,500
2. 2 Lempriere Avenue, Mount Martha $2,000,000
3. 2 Newton Street, Surrey Hills $1,505,000
4. 13 Delbridge Street, Fitzroy North $1,500,000
5. 10 Clark Street, Williamstown $1,475,000

Top 5 Bargain Houses

1. 371 Ballarat Road, Sunshine $301,000
2. 7 Wellington Street, Kings Park $314,000
3. 6 Lacey Street, Lalor $319,000
4. 3 Selby Place, Craigieburn $320,500
5. 4 Jingai Court, Frankston $321,000

Top 5 Apartment

1. 12 Gibbs Street, Beaumaris $1,085,000
2. 14/144 Rose Street, Fitzroy $910,000
3. 1/19 Faulkiner Street, Clayton $800,000
4. 7A Jellicoe Street, Box Hill South $770,000
5. 10 Roberts Street, Keilor East $730,000

Top 5 Bargain Apartments

1. 15/16-18 Passfield Street, Brunswick West $270,000
2. 5/315 Flemington Road, North Melbourne $310,000
3. 8/12A Toward Street, Murrumbeena $323,000
4. 5/16 Carmichael Street, West Footscray $325,000
5. 2/5 Cardore Court, Noble Park $365,000

Source: REIV

For a basic snapshot of your suburb’s performance or a property report customised for your property, request a Free Market Report.

If you are thinking of buying selling or investing and would like a FREE 5 minute chat
with Street News Director Peter Sarmas, please contact him on 0418 740 606
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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