Melbourne Auction Results – October 13, 2014

By Peter Sarmas on 13 Oct 2014
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Melbourne Auction Results 6th-12th October 2014

74%
Clearance
Rate

843
Reported
Auctions

Sold at Auction: 523 Auction Volumes: $487.05m
Passed in: 220 Weekend Last Month: 941
Sold Before: 100 Weekend Last Year: 931
Sold After: 0 Houses: 78%
Unreported: 161 Units: 66%

 

Has The Property Market Peaked?

There seem to be early signs that the Melbourne and Victorian property market has peaked.

Over the weekend, APM/Fairfax reported a 74 per cent clearance rate from 892 properties. Mount Waverley had the highest number of auctions (19) and only one of these properties passed in.

According to economist Dr Andrew Wilson, Melbourne recorded its lowest clearance rate for two months. Though September set a new all-time record for auction numbers, the trend is now falling as supply increases. The REIV reports that 8,165 auctions have been held over the past three months.

Further supporting a slowing of the market are the latest ABS finance figures for August, which show lending growth cooling, especially among owner-occupiers.

Investor housing finance fell 0.1 per cent from an all-time high in July, and accounts for a considerable 49.7 per cent of housing finance.

While vendors have held the upper hand recently, the past two weekends have shown that they must meet market expectations and avoid setting their prices too high.

Melbourne property price growth has moderated, becoming more sustainable, which is a positive sign for perspective buyers concerned about any immediate interest rate hikes or lending policy tightening.

Toorak

Three bedroom houses in Toorak have experienced considerable capital growth recently
Photo: The Homepage

Where Is The Growth Happening?

The highest capital growth in the Melbourne market was created by three bedroom homes in the inner and middle suburbs, new data from the REIV shows.

The REIV analysis separates sales results across Melbourne into two, three and four bedroom homes and one, two and three bedroom units.

Of all housing types, three bedroom houses recorded the strongest capital growth over the three months to June.

“Though September set a new all-time record for auction numbers, the trend is now falling as supply increases.”

This property type recorded increases of 10.7 per cent in Toorak, 10.1 per cent in Thornbury and 9.9 per cent in Springvale.

The best suburbs for four bedroom homes were Mitcham, where this product grew by six per cent, and Kew, which recorded 5.4 per cent growth.

By contrast, the strongest rises for two bedroom homes were just 3.6 per cent in Brunswick and 3.4 per cent in Coburg.

In the unit sector, one bedroom apartments in St Kilda East performed the best, rising by 7.5 per cent.

However, one bedroom units recorded weak growth elsewhere in the city – the second best performer, Melbourne’s CBD, experienced an increase of just 2.4 per cent.

Street Advocacy News: Buying & Selling Property With Street News

This week brought about a very interesting challenge.

I was engaged by a client to conduct the due diligence on a property she had found. Time was a factor as she was expecting imminent competition.

It was one of those properties that looks like a good opportunity but has its issues. We spent over an hour looking at the property and walking the streets to examine the area. I was looking for signs of gentrification on the positive side – something every budding investor should consider – and graffiti, syringes, poor parking and nearby planning.

Was it in the best part of Richmond?  No. But was it priced accordingly? Yes!

Richmond

Richmond is a largely gentrified suburb
Photo: The Homepage

Gentrification occurs when houses in the area become renovated, the council spends money to improve local facilities, and planning allows for zoning changes and the construction of newer properties.

All of this invites wealthier owners to move into an area, which results in instant capital growth within a very short period of time relative to other areas.

“I was looking for signs of gentrification… something every budding investor should consider.”

Part of my three days of due diligence involved calling the council to discuss current zoning, which had recently changed but had not been reflected in the vendor’s paperwork.

This small piece of information, insignificant and overlooked by many, added so much potential and value to the property.

We knew we couldn’t let this property pass us by after we spoke to one of the top Richmond agents and they confirmed our findings. So without wasting any further time, I negotiated a successful purchase for my client.

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Top 5 Houses

1. 73 Bowen Street, Camberwell $3,600,000
2. 382 Montague Street, Albert Park $2,750,000
3. 34 Rubens Grove, Canterbury $2,463,000
4. 23 Stevenson Street, Kew $2,340,000
5. 5 Robinhood Road, Ivanhoe East $2,326,000

Top 5 Bargain Houses

1. 21 Kathryn Street, Doveton $265,000
2. 3 Hyssop Drive, Hallam $325,000
3. 51 Fraser Street, Sunshine $326,000
4. 38 Pinnock Avenue, Roxburgh Park $330,000
5. 46 Fifth Avenue, Rosebud $332,500

Top 5 Apartments

1. 2/54 Through Road, Camberwell $1,424,000
2. 1/14 Murphy Street, Brighton $1,420,000
3. 11 Woodside Street, Fitzroy North $1,395,000
4. 38A Rocklea Road, Bulleen $1,335,000
5. 1/5 Ardoch Avenue, St Kilda East $1,277,500

Top 5 Bargain Apartments

1. 7/74 Dundas Street, Thornbury $205,000
2. 4/34-42 Hanna Street, Noble Park $250,000
3. 7/45 Oakleigh Road, Carnegie $270,000
4. 15/55 Buckley Street, Moonee Ponds $277,000
5. 2/25 Nicholson Avenue, Reservoir $287,000

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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