by Antony Bucello & Catherine Cashmore
2012 REIV auction clearance rate 61%
2012 NPB auction clearance rate 76%
A 57 per cent clearance rate was recorded by the REIV this week compared to last week’s clearance rate which came in at 60 per cent.
A total of 777 properties were auctioned on the weekend, and while there were 124 that still need to be reported, 446 properties sold either at or before auction.
Overall the year ended on a steady clearance rate of 61%, compared to 2011 when the year ended on 59%.
Here are some interesting statistics the REIV has provided in relation to the Melbourne property market in 2012:
- Metro sales – There were 69,000 residential sales in Melbourne with 23 per cent by auction compared to 72,000 in 2011 with 24 per cent by auction.
- First Home buyers – Were more active in 2012 with an estimated 29,000 sales compared to 24,600 in 2011.
- Victorian sales – there were a total of 90,000 residential sales in Victoria compared to 96,000 in 2011.
- Overall clearance rate – the Auction clearance rate ended the year on 61 per cent compared to 59 per cent in 2011.
- Highest turnover – Melbourne and Frankston had the highest number of residential sales for the second year in a row. Substantial increases in sales were recorded in Pakenham and Croydon.
- Highest clearance rates – The highest clearance rates were recorded in Donvale (82%), Hughesdale (82%), Heidelberg (80%) and Kew East (80%).
- Highest volume of auctions – The largest volume of auctions was again in Richmond with 455 which had a clearance rate of 67 per cent. Reservoir was second with 419 auctions and a clearance rate of 52% and St Kilda came in third with 362 auctions and a clearance rate of 57 per cent.
- Value of auction sales – There has been $11B in auction sales in 2012 compared to $13.7B in 2011.
- Value of all sales – There was approx $30.2B worth of homes sold in Victoria, $27B of which was in the metropolitan area compared to $35.4B in 2011 and $43.8B in 2010.
REIV CEO Enzo Raimondo said that 2012 was ending with the market in a better position than it was a year ago and improved levels of affordability would ensure buyers continue to be well placed in 2013.
“There are three reasons to be confident about prospects for the market in 2013: consumer confidence levels are above this time last year; the clearance rate is higher than this time last year; and overall prices have been stable.
“Affordability is at reasonable levels with prices remaining below their peak and interest rates at historical lows.
“The inner city is where buyers will find the best bargains in 2013 as the median is 10.4 per cent below its peak compared to 9.3 per cent in the middle suburbs and 7.9 per cent in the outer suburbs.
“If consumer confidence continues to slowly improve it should encourage more buyers into the market and that will drive capital growth. As supply and demand is in much greater balance, any capital growth in 2013 will only be moderate.
“First home buyers have clearly responded to lower prices and interest rates with around 18 per cent more than in 2011. With stamp duty cuts increasing to 30 per cent on 1 January, conditions will continue to improve for them,” Mr Raimondo concluded.
This is the last edition of Melbourne Property Market Weekly Update for 2012. A full summary on 2012 will be provided in January.
On behalf of the entire team at National Property Buyers, we wish you a very Merry Christmas and a safe and prosperous 2013.
| Clearance Rate: | 57% | ||
| Total Auctions: | 777 (124 unreported) | ||
| Sold: | 446 | Passed in: | 331 |
| At auction: | 366 | Vendor Bid: | 200 |
| Before auction: | 80 | Real bid: | 131 |
| After auction: | 0 | ||
| Total Private Sales: | 529 | ||
| Total Weekly Turnover: | 975 | ||
| Source: www.reiv.com.au | |||
The NPB clearance rate is representative of the results evidenced in the ‘quality’ end of the marketplace. We take the results from a range of suburbs; however please note we are not ‘suburb specific’. NPB Melbourne, negotiate on hundreds of properties for their clients each year throughout all areas of Melbourne and the Bellarine Peninsula. The properties we highlight are taken from a selection which we carefully analyse for quality assessment and revise daily.
| NPB Clearance Rate: | 76% | ||
| Total Auctions Reviewed: | 33 | ||
| Sold: | 25 | Passed in: | 8 |
| Under $600k: | 11 | 4 | |
| $600k-$1m: | 9 | 1 | |
| $1m+: | 5 | 3 | |
Why is the NPB Clearance Rate always higher than the REIV Clearance Rate?
The NPB clearance rate is a snapshot of ‘investment grade’ or ‘cream of the crop’ properties representing only those we recommend to clients. These are properties that hold the best potential for a long term capital growth and rental demand. Whilst the Real Estate Institute of Victoria include all properties scheduled for auction (as reported by their members) – including those that are poorly located and unlikely to attract demand even in a robust climate; our clearance rate is far more representative of the market that represents our client’s best interests. It’s an important part of how we assess the best negotiation strategy for your needs.
The full list of the 33 properties reviewed by NPB this weekend:
| Suburb | Type | Beds | Quote | Result |
| Thornbury | Apartment | 1 | $280-310k | SOLD $288,500 |
| Carnegie | Apartment | 2 | $330-360k | PASSED IN |
| Heidelberg | Apartment | 2 | $340-370k | SOLD $395,000 |
| Sunshine | House | 3 | $440-480k | PASSED IN |
| West Footscray | House | 3 | $465-505k | SOLD $472,500 |
| West Footscray | House | 3 | $470-490k | SOLD $490,000 |
| Coburg North | Townhouse | 3 | $445-490k | SOLD $505,000 |
| Coburg | Unit | 3 | $460-500k | SOLD $520,000 |
| Preston | Townhouse | 2 | $490-530k | SOLD $530,000 |
| Elwood | Apartment | 2 | $450-490k | SOLD $531,000 |
| Armadale | Apartment | 2 | $470-530k | PASSED IN |
| Footscray | House | 3 | $500-550k | SOLD $562,500 |
| Templestowe Lwr | House | 3 | $500k+ | SOLD $575,000 |
| West Melbourne | Apartment | 2 | $500-550k | PASSED IN |
| Prahran | Apartment | 2 | $520-570k | SOLD $577,500 |
| Sold | 11 | |||
| Passed In | 4 | NPB Clearance Rate 76% | ||
| Total | 15 | |||
| Suburb | Type | Beds | Quote | Result |
| Fitzroy | Apartment | 2 | $550-600k | SOLD $605,000 |
| Hawthorn | Apartment | 3 | $550-600k | SOLD $625,000 |
| Doncaster East | House | 3 | $530k+ | SOLD $632,000 |
| Malvern East | Unit | 2 | $520k+ | SOLD $655,000 |
| Box Hill South | House | 2 | $500-550k | SOLD $675,500 |
| Prahran | Apartment | 2 | $550-600k | PASSED IN |
| Brunswick | House | 2 | $560-610k | SOLD $680,000 |
| Yarraville | House | 3 | $575-625k | SOLD $706,000 |
| Doncaster East | House | 3 | $580-630k | SOLD $766,000 |
| Richmond | House | 3 | $720-780k | SOLD $830,000 |
| Sold | 9 | |||
| Passed In | 1 | NPB Clearance Rate 90% | ||
| Total | 10 | |||
| Suburb | Type | Beds | Quote | Result |
| Northcote | House | 4 | $900-990k | SOLD $1,010,000 |
| Aberfeldie | House | 4 | $1.05-1.15m | SOLD $1,100,000 |
| Elwood | House | 3 | $1.1-1.2m | SOLD $1,185,000 |
| Port Melbourne | Townhouse | 3 | $1.1-1.2m | PASSED IN |
| South Yarra | House | 2 | $1.2-1.4m | SOLD UNDISCLOSED |
| Brighton East | House | 5 | $1.7m+ | PASSED IN |
| East Melbourne | House | 3 | $1.8-2m | SOLD $2,480,000 |
| Sold | 5 | |||
| Passed In | 2 | NPB Clearance Rate 71% | ||
| Total | 7 | |||
| Sold | 25 | |||
| Passed In | 7 | NPB Clearance Rate 78% | ||
| Total | 32 | |||
AUCTIONS IN THE SPOTLIGHT
3/8 Edgar St, Heidelberg
23 Hansen St, West Footscray
Comment:
2 parties were interested in this dated but well represented period home with lots of potential. The auction started with a genuine bid of $450k, followed by a vendor bid of $460k. A second bidder then placed a bid of $465k and the property then passed in to that bidder.
A sale was successfully negotiated post auction for $490k – a great result for the purchaser.
21 Burns St, Elwood
Comment:
This freestanding renovated 3 bedroom, 2 bathroom house opened on a vendor bid of $1.1m. There was only 1 party interested and they matched the vendor bid only to see the property passed in for $1.1m. A sale was successfully negotiated post auction for $1,185,000.
10/8 Avoca St, Elwood
Comment:
This well located 2 bedroom updated apartment, quoted by Chisholm & Gamon at $450-490k, opened genuine bid of $440k. With no one else showing interest, the auctioneer placed a vendor bid of $450k which was followed by another genuine bid of $460k. With another vendor bid $465k being following by another genuine bid of $470k, the property passed in for negotiation. A sale was successfully negotiated for $497,000.
CONTACT US
If you need any assistance with searching, assessing or negotiating your next property purchase or simply wish to discuss your property buying needs, please don’t hesitate to contact us. Alternatively, you can complete our online Help Us Help You form and we will contact you.
Regards
Antony Bucello and Catherine Cashmore
Comment:
This fully renovated apartment in a great position surprisingly only attracted a small crowd of around a dozen people. With auctioneer Gordon Whale from Miles Real Estate opening the auction with a vendor bid of $340k, two buyer advocates representing their clients got involved and the bidding reached $375k reasonably quickly before the the auctioneer went in for a chat with the vendor.
Upon his return, he declared we were not yet at a level that was enough to place the property on the market. The same 2 parties continued until the property was announced on the market when the bidding reached $390k, eventually selling to one of the buyer advocates for $395k.