Melbourne Market Auction Update – 14 June 2011
The clearance rate for this week in Melbourne was 57% as reported by the REIV. The long weekend typically results in considerably less properties up for auction and this year was no exception. Out of only 146 reported auctions, 83 sold and 63 were passed in, of which 38 of those were passed in on a vendor bid. At the same time last year, there were 348 reported auctions with a clearance rate of 72%.
The NPB clearance rate for the week was 63%, with 7 of the 11 properties we reviewed selling. In Northcote at 104 Thomson St – a renovated 2 bedroom single fronted Victorian – a crowd of 40 or so people watched as Nelson Alexander auctioneer Spiros Karagiannidis tried his best in vain to extract a bid. Quoted at 680-750k, the auction started and finished with a vendor bid of $680k. The property is now private sale for $739k.
On the other side of town in Ormond, a 2 bedroom semi-detached brick house at 32 Bewdy St (in the McKinnon Secondary College Zone) was quoted $560-610k and attracted a healthy crowd and 3 bidders were involved at the auction. After being announced as having reached the vendors reserve at $640k, the bidding continued until the property sold under the hammer for $684k. A very good result for the vendor.
The full list of the properties we reviewed this weekend:
|South Melbourne||Apartment||2||$530-580k||SOLD $616k|
|Bentleigh East||House||3||$750-800k||SOLD $888k|
|Balwyn North||House||3||$960k – $1.06m||PASSED IN|
|Port Melbourne||House||4||$1.35-1.45m||SOLD $1.4m|
The next 2 weeks have around 700 auctions scheduled for each weekend. We expect much of the same with properties going to auction passing in and then being negotiated afterwards. The better properties will attract enough interest to have a competitive auction and these properties are generally selling under the hammer.
A common question I am hearing at the moment is whether or not it is best to wait for the property to pass in before expressing interest and starting negotiations. That is a very good question and there is no simple yes or no answer. At the very least, it would be dependent on what type and the location of the property, how much competition there is, what the property is worth and what the vendor is chasing. Only when you have the answers to those questions can you really determine what the best negotiation strategy would be. And you should know the answers to those questions before you turn up on auction day. Knowing how to negotiate to put yourself in the best position is crucial in the current market in order to purchase the property at the lowest possible price.
If you need any help with your next property purchase or wish to discuss your property buying needs, don’t hesitate to drop me an email or give me a call.
National Property Buyers
0418 131 950