Why More Vendors Are Selling Before Auction

The week before the AFL Grand Final and the coming Friday public holiday saw an increase in activity, particularly around pre-auction sales. Of the 347 sales via auction campaign 103 properties sold prior to auction, around 30%. Some vendors are finding it hard to resist a sure thing when the price is right, instead of rolling the dice at auction. In total, 497 auctions have been reported so far, achieving a clearance rate of 70%. A further 461 properties sold via private sale.

To make sure you don’t miss out on a auction property read our blog on how to let a selling agent know your interested in a property without showing your hand here.

In other news, our local Buyer Agent Robert Di Vita recently shared his insights with Australian Property Investor Magazine about what investors should be looking for in the current market, and just as importantly, what they should be avoiding.

What to avoid hasn’t changed much from what we’ve been saying for over a decade. Avoid high-rise apartments around Southbank, Docklands and the city fringe. It might be tempting for investors to pick up a bargain at the moment, but long-term capital growth prospects remain low.

Rob also unpacked where he sees opportunity for investors, which is in the commercial space.

Previously, first-time investors typically contacted us about residential properties, while those with small portfolios were more likely to look into commercial as a way to diversify. Now, first-time investors are looking at commercial too, which we admit can be harder to get right. Focusing on commercial properties worth $1 million or more, with high yields and underpinned by quality tenants is a good start.