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%).
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:
|Cheltenham||Villa Unit||2||$330-365k||SOLD $355k|
|Coburg North||Townhouse||2||$400-440k||SOLD $424k|
|Carnegie||Villa Unit||2||$430-480k||SOLD $555k|
|Ascot Vale||House||2||$650-700k||SOLD $707k|
|Bentleigh East||House||3||$700-770k||PASSED IN|
|Kew East||Townhouse||3||$750k+||SOLD $826k|
|Caulfield South||Townhouse||3||$750-835k||PASSED IN|
|St Kilda East||House||3||$900-970k||SOLD 1.15m|
|Port Melbourne||House||3||$1m+||SOLD $1.252m|
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.
National Property Buyers
0418 131 950