Melbourne Auction Results – October 14, 2013

By Peter Sarmas on 14 Oct 2013
2 Comments

Melbourne turned on a glorious Saturday this weekend. With a reported 826 auctions going under the hammer, there was really no excuse for a poor showing.

The city recorded a solid 76 per cent clearance rate on a very good volume of properties.

This weekend was expected to either solidify the growing trend that the Melbourne property market is in a growth phase, or highlight recent uncertainty.

We spoke to a number of key players in the market – both real estate agents and buyer advocates – to get their word on Melbourne’s auction activity.

In the Middle North

Arthur Dislakis from First National Mill Park describes the current market as “buoyant.”

“We’ve seen a major turnaround over the past few weeks,” he says. “Ever since the change in government there seems to be a different feeling in the property market. I know some markets are being driven by investors, but here in Bundoora, Mill Park and South Morang every buyer type is out in force. All are genuinely looking to secure their next property.”

In Mr Dislakis’s opinion, “There seems to be pent-up demand as a result of past indecision that needs to be satisfied. We’re seeing good buyers through our opens, multiple bidders at our auctions and an overall strength in the market, especially in the $350,000-$400,000 price range for properties that have three bedrooms and two bathrooms.”

“Fortunately, this buyer demand is being met by an increase in stock levels because vendors feel more confident in present conditions.”

In the Inner West

Buyer advocate Cate Bakos is similarly positive about the inner west. She says “buyers are seeing great value in the inner west.”

After bidding and negotiating at four auctions on Saturday, Ms Bakos believes the inner west is attracting attention.

“The strong market drivers seem to be first home buyers, who not only recognise the value that they can achieve in the inner west, but also the opportunities available to buy a home on a full block,” she says.

“Unlike some other parts of Melbourne, first home buyers can secure their dream house, villa or townhouse within 10km of the city for under $600,000 in places like West Footscray, Kensington, Ascot Vale, Spotswood or Newport. All of these suburbs have access to infrastructure and transport as well as cafes, restaurants and local bakeries.”

Ms Bakos describes auction bidding in her area as strong.

“Results for well-located homes are surpassing vendor’s expectations,” she says. “Many buyers are taking advantage of the opportunity to secure property prior to auction. It’s fair to say that Melbourne’s inner west is going strong.”

In the North East

According to Tony Tuccitto of Hocking Stuart Doncaster, “our clearance rate for this year has been nearly 90 per cent. There is no doubt demand is currently outstripping supply. Some of the properties we’re putting to auction are surpassing their reserves by tens of thousands of dollars.”

In fact, at 16 Tyrol Court, Doncaster East, a four bedroom brick veneer property in its original condition was quoted at $650,000 plus, but it sold for $750,000 before auction, surprising Mr Tuccitto and his team. They didn’t expect such an impressive result for what appeared to be a ‘standard property.’

In his review of the market, Mr Tuccitto says it is “strong across the board in all of Manningham at the moment. There are strong numbers through our open for inspections and nearly all of our properties are attracting multiple offers.”

These sentiments are supported by results in The Age over the weekend. The paper confirmed that the outer east had an 81 per cent clearance rate, while seven out of eight properties sold in Doncaster (one passed in on the day).

In the South East Middle

Buyer advocate Catherine Cashmore believes parks and village life are drawcards in the south east.

Ms Cashmore attended an auction at 29 McArthur Street in Bentleigh, where “a high number of buyers were out in force.”

The three-bedroom brick property, which was advertised for its renovation or knock-down potential, was quoted at $720,000 to $760,000 by Century 21. According to Ms Cashmore, “the property was declared on the market at $753,000, but quickly reached its final price of $806,500 after four bidders bid to secure the property.”

The fact that only 19 homes were available in the area “helped drive up its value considerably. The clearance rate for homes sold in the area was 100 per cent over the weekend, while unit and townhouse sales did not fare well.”

Ms Cashmore attributes recent interest in Bentleigh to its proximity to Melbourne’s CBD. “Bentleigh is only 13kms from Melbourne central. Young families love the area for its parks, great schools, two train stations (Bentleigh and Paterson stations) and nearby shopping strip.”

Top 5 Houses

1. 23 View Street, Hawthorn $3,150,000
2. 18 Burroughs Road, Balwyn $2,960,000
3. 110 Wright Street, Middle Park $2,910,000
4. 7 Hunt Street, Balwyn North $2,290,000
5. 253 Balwyn Road, Balwyn North $2,100,000

Top 5 Bargain Houses

1. 58 Dunbarton Drive, Pakenham $247,000
2. 32 Riggall Street, Dallas $265,000
3. 17 Howqua Place, Cranbourne $280,000
4. 13 Tania Court, Carrum Downs $312,000
5. 2 Milford Crescent, Frankston $330,000

Top 5 Apartments

1. 38 Clinton Street, Brighton East $1,600,000
2. 3/2A Montgomery Street, Richmond $1,505,000-
3. 81A Ormond Esplanade, Elwood $1,300,000
4. 86B Halifax Street, Brighton $1,165,000
5. 28A Glencairn Avenue, Brighton East $1,119,000

Top 5 Bargain Apartments

1. 3/97-99 Raleigh Road, Maribyrnong $292,500
2. 202/668 Bourke Street, Melbourne $300,000
3. 1/28 Bainbridge Close, Craigieburn $301,000
4. 2/11 Jinghi Road, Reservoir $315,000
5. 11/95 Mickleham Road, Tullamarine $316,000

Source: REIV

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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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Leave a Comment2 Comments
  1. Ian Colthart said...

    I note that only one of the 201 properties passed in sold after auction. Does this mean that most vendors now have an over-inflated estimate of the value of their property?

    October 14, 2013 @ 7:38 pm

    Reply

  2. peter said...

    As property prices rise, vendor expectations also increase, perhaps as a result of the agent inflating the expected selling range to “buy” the business when listing the property. Indications from real estate agents suggest that properties are not being withdrawn, but sold up to 30 days after the auction. There is absolutely no reason why a property in this current market in Melbourne should not be selling provided it is priced, presented and marketed correctly.

    October 15, 2013 @ 12:28 pm

    Reply

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