27 June 2011

According to the REIV, the clearance rate for this week was 58% , consistent  with the yearly average of 59%. 355 out of 611 properties that were scheduled for auction sold either before or after auction or under the hammer. A total of 256 properties were passed in, and 154 of those were passed in on a vendor bid. Properties sold privately totalled 511 for the week, up on the previous 2 weeks.

The NPB clearance rate for the week was 63%, with 12 of the 19 properties we reviewed selling. Interestingly, the lower end of the market (up to $600k) continues to outperform the higher end. In the “under $600k” category, 6 of the 7 properties we reviewed sold giving us a clearance rate of 85%. In the $600k-$1m range, 4 of 7 properties sold (57% clearance) and in the $1m+ bracket, only 2 of the 5 properties we reviewed sold (40%).

26 Davis St Kew - Marshall White Auctioneer James Tostevin passes in this 3 bedroom double storey house.

In Preston at 36 Wilcox St, a 3 bedroom Californian Bungalow attracted a crowd of around 50 people however there was only one interested party. The auction opened on a vendor bid of $600k and passed in for $630k. The property sold for $642k after a successful negotiation post auction.

Over in Kew at 26 Davis St,  Marshall White agent James Tostevin auctioned a 3 bedroom semi-detached double storey house in front of a crowd of 60 odd people.  With 2 parties interested, it was a fairly uneventful auction with the property passing in for $970k. The property remains for private sale for $1.13m.

The full list of the properties we reviewed this weekend:

Suburb Type Beds Quote Result
Cheltenham Villa Unit 2 $330-365k SOLD $355k
Coburg North Townhouse 2 $400-440k SOLD $424k
Carnegie Villa Unit 2 $430-480k SOLD $555k
Prahran Apartment 2 $430-480k PASSED IN
Camberwell Apartment 2 $520-560k SOLD $585k
Ivanhoe Townhouse 2 $550k+ SOLD $620k
Highett House 3 $550-600k SOLD $595k
Preston House 3 $600k+ SOLD $642k
Ascot Vale House 2 $650-700k SOLD $707k
Yarraville House 4 $670-730k PASSED IN
Bentleigh East House 3 $700-770k PASSED IN
Kew East Townhouse 3 $750k+ SOLD $826k
Caulfield South Townhouse 3 $750-835k PASSED IN
Williamstown House 3 $840-880k SOLD $858k
St Kilda East House 3 $900-970k SOLD 1.15m
Kew House $950k+ PASSED IN
Port Melbourne House 3 $1m+ SOLD $1.252m
Essendon House 3 $1.15-1.25m PASSED IN
Hampton House 5 $1.2-1.275m PASSED IN

Common - Sitting on the fence and hands in pockets....

The trend is that properties overall are spending more days on the market, however the better properties, particularly at the lower end, continue to sell and perform well as expected, and properties that are even slightly compromised in terms of quality or position are struggling. Rightly so, investors are being cautious and selective.

With school holidays approaching, there are only 470 auctions scheduled for next weekend. We expect the market to perform the same throughout  July. If anything the lower end of the market may even perform a little better if government incentives (first home buyer grants and stamp duty savings) create a bit more activity in the first home buyer market.

If you need any help with searching, assessing or negotiating your next property purchase or simply wish to discuss your property buying needs with an expert, don’t hesitate to contact me.

Antony Bucello
National Property Buyers
[email protected]
0418 131 950