Melbourne Weekly Update | National Property Buyers

14

May

Melbourne Property Market Weekly Update

Property market currently in a phase of un-changeable stability…

by Antony Bucello & Catherine Cashmore

If you’ve been following the budget and numerous political highlights over the past few weeks and find yourself growing tired of fluctuating insecurity over interest rate movements and unemployment figures, then take a break and look towards the property market because it’s currently in a phase of un-changeable stability.

The clearance rate is now trending above that of last year, but the movements from one week to the next are marginal at best. Last weeks clearance rate of 62 per cent was revised to 61 per cent. This week’s clearance rate of 63 per cent is a strong result however; with 63 results yet to be reported, it may also drop mid-week.

The number of unreported results rises during a flat climate because more properties sell via negotiation than ‘under the hammer.’ Once un-reported results are collected, they go into making up the midweek revised figure. Although it’s frustrating to have a high number of un-reported results pending, agents are allowed to report properties as ‘sold at auction’ as long as auction conditions (no 3 day cooling) are applicable to the sale. Therefore late results coming in indicate the level of ‘behind closed doors’ activity occurring.

Such a climate is ideal from a buyer perspective. Under a heated auction atmosphere there is rarely a chance to take a step back and discuss budget decisions with a partner or take time out to ‘think’. A sale by negotiation allows this to happen.

The lowering un-employment rate in Victoria from 5.8 to 5.3 should be welcomed. However it should also be noted that the number has been patched up with an increase in part time work and fall in full employment. Therefore, it’s unlikely to play a part in the property market other than perhaps increase overall confidence in the economy.

The interest rate drop partially passed on from all four major banks, has helped free up disposable income and allows greater borrowing power from buyers wanting to take this option. However rates that go down below the long-term average also go up therefore it’s expected that buyers will remain cautious.

Perhaps the one dynamic factor that may bear effect on forthcoming results is the gradual drop in stock levels in the more popular suburban locations. It’s seasonal in winter to see lower stock levels, however considering there was record high stock last winter hampering the market for vendors, to see a reduction may entice competition at auctions resulting in greater numbers selling under the hammer and a possible rise in the metro median.

For the time being, power is still largely in buyer’s hands and the market broadly represents a level playing field.

Weekend Clearance Rate Figures

Week Ending Sunday 13 May 2012
Clearance Rate:	63%
Total Auctions:	591
Sold:	370	Passed in:	221
At auction:	302	Vendor Bid:	135
Before auction:	67	Real bid:	86
After auction:	1
Total Private Sales:	564
Total Sales:	934
Source: www.reiv.com.au

The NPB clearance rate falls broadly in line with the REIV figures this week showing a rise in last week’s numbers. There is a growing shortage of quality stock with strong results evidencing themselves particularly in the inner northern suburbs. Those wanting to purchase this year would be wise to step in before prices start reflecting this trend. This is particularly applicable if your budget falls between $400,000 – $800,000. This is where the bulk of buyer demand remains.

Weekend Clearance Rate Figures

Week Ending Sunday 13 May 2012
NPB Clearance Rate:	76%
Total Auctions Reviewed:	42
Sold:	32	Passed in:	10
Under $600k:	12		3
$600k-$1m:	11		2
$1m+:	9		5

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 40 properties reviewed by NPB this weekend:

< $600k
Suburb	Type	Beds	Quote	Result
Brunswick West	Apartment	2	$330-360k	SOLD $345,000
South Yarra	Apartment	1	$340-375k	SOLD $379,000
Williamstown	Apartment	2	$380-410k	SOLD $408,000
Box Hill	Unit	2	$390k+	SOLD $438,000
Hampton East	Unit	2	$380-415k	PASSED IN
Sandringham	Unit	2	$390-430k	SOLD $440,500
Ferntree Gully	House	4	$420-450k	SOLD $460,000
St Kilda East	Apartment	2	$400-440k	SOLD $477,000
Donvale	Townhouse	3	$480k+	SOLD $500,000
Hawthorn East	Apartment	2	$440-480k	SOLD $506,000
Preston	Townhouse	3	$440-495k	SOLD $531,000
Elsternwick	Unit	2	$470-520k	PASSED IN
South Melbourne	Apartment	2	$500-550k	SOLD $550,000
Surrey Hills	Unit	2	$500-550k	PASSED IN
Sold	12
Passed In	3	NPB Clearance Rate 80%
Total	15

$600k – $1m
Suburb	Type	Beds	Quote	Result
Macleod	Townhouse	3	$550k+	PASSED IN
Collingwood	Apartment	2	$560-600k	SOLD $588,800
Elwood	Apartment	2	$550-590k	SOLD $607,500
West Footscray	House	3	$490-540k	SOLD $610,000
Niddrie	House	3	$540-590k	SOLD $615,000
Doncaster	House	3	$570k+	SOLD $649,000
Mordialloc	Townhouse	3	$590-640k	PASSED IN
Balwyn	Townhouse	2	$630-690k	SOLD $657,500
Elwood	Apartment	3	$670-730k	SOLD $744,000
Alphington	House	3	$675-725k	SOLD $770,000
Northcote	House	3	$680-730k	SOLD $785,000
Preston	House	3	$690-750k	SOLD $815,000
Burwood	House	3	$800-870k	SOLD $875,000
Sold	11
Passed In	2	NPB Clearance Rate 85%
Total	13

$1m+
Suburb	Type	Beds	Quote	Result
Glen Iris	House	3	$960-1050k	SOLD $1,010,000
Richmond	House	3	$900k+	SOLD $1,020,000
Flemington	House	3	$950-1000k	SOLD $1,045,000
Port Melbourne	House	2	$1m+	PASSED IN
Ivanhoe East	House	4	$1.1-1.2m	SOLD $1,196,000
St Kilda	Apartment	3	$1.2-1.3m	SOLD $1,215,000
Brighton	House	2	$1.2-1.3m	PASSED IN
Kew	Townhouse	3	$1.4m+	PASSED IN
Northcote	House	4	$1.4-1.5m	PASSED IN
Camberwell	House	3	$1.6-1.7m	PASSED IN
Clifton Hill	House	3	$2.2-2.3m	SOLD $2,520,000
Camberwell	House	4	$2.5m+	SOLD $2,813,000
Princes Hill	House	3	$3.2-3.5m	SOLD $3,820,000
Canterbury	House	4	$3.5m+	SOLD $3,820,000
Sold	9
Passed In	5	NPB Clearance Rate 64%
Total	14

Overall
Sold	32
Passed In	10	NPB Clearance Rate 76%
Total	42

AUCTIONS IN THE SPOTLIGHT

36 Murray Rd, McKinnon

36 Murray Rd McKinnon Melbourne

Reported by:Catherine Cashmore
Agent:Buxton
Quote:POA
Crowd:50 people (approx.)
Bidders:2
On Market:N/A
Result:Passed in at $890,000 – and sold via negotiation for $941,000

Comment:

A crowd of around 50 attended the auction for this period house nestled in a quiet pocket of McKinnon. The property had been partially updated and being in the McKinnon school zone, provided a good ‘foot through the door’ opportunity for a family with school aged children.

The auctioneer called for an opening bid of 840k, and shortly following got his wish. Requesting increments of 10k, it was a two-horse race for the rest of the auction. At 870k biding increments were broken into 5k jumps. However at 890k the bidding dried up and the property passed in for negotiation later selling for $941,000.

102 Head St, Brighton

Reported by:Catherine Cashmore
Agent:Hodges
Quote:$1,525,000 – $1,625,000
Crowd:40 people (approx.)
Bidders:0
On the Market:N/A
Result:Passed in on a vendor bid – reserve $1,580,000

Comment:

A healthy number of watchers attended the auction for this 4 bedroom 2 bathroom renovated period property. Like the other auctions I witnessed most had arms crossed or hands stuffed in pockets. No opening bid was forthcoming, therefore the auctioneer opened on a vendor bid of $1.5mil. Unfortunately, despite the numbers attending the auction never progressed past first base and the property was passed in on a vendor bid of $1,500,000.

9 Abbin Avenue, Bentleigh East

9 Abbin Avenue, Bentleigh East, Melbourne

Reported by:Catherine Cashmore
Agent:Buxton
Quote:$800,000 – $880,000
Crowd:50 people (approx.)
Bidders:2
Result:PASSED

Comment:

Enjoying the free coffee on offer from Buxton’s complementary coffee truck, a crowd of around 50 gathered for the auction of this 4 bedroom renovated home holding high expectations. The Auctioneer opened on a vendor bid of $800,000 and called for an advance of 10k increments. In a splurge of activity, two bidders swiftly took the price to 850k before interest dried up and the home passed in for negotiation. No sale was achieved and the reserve has been recorded at $887,000

8 Dene Avenue, Malvern East

Reported by:Catherine Cashmore
Agent:Bennison Mackinnon
Quote:POA
Crowd:35 people (approx.)
Bidders:1
Result:Passed in and sold via negotiation

Comment:

Only one bidder chose to get involved for this un-renovated property on a block of land approx. 794 sqm. The auction opened on a vendor bid of $1.2 mil and it took the half time break as well as a lowering of the requested increments from 20k to 10k to get one bidder to raise a hand. The property passed in at $1.21mil for negotiation. The property sold successfully a short while following for an undisclosed amount over $1.25Mil.

60 Clive St, West Footscray

Reported by:Antony Bucello
Agent:Hocking Stuart
Quote:$490,000 – $540,000
Crowd:60 people (approx.)
Bidders:5
On Market:$550,000
Result:SOLD – $610,000

Comment:

The auction for this un-renovated Californian Bungalow was hotly contested. The auction opened on a vendor bid of $490,000 to kick things off and 5 bidders competed for the home. The property reached it’s ‘reserve’ at $550,000 and sold some $60,000 later for $610,000. A strong result.

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

Antony Bucello and Catherine Cashmore from National Property Buyers

Email Antony
Email Catherine

07

May

Melbourne Property Market Weekly Update

Some standout results in a steady market atmosphere…

by Antony Bucello & Catherine Cashmore

If the interest rates had inspired prospective buyers to head out shopping this weekend, the rain put a dampener on any marked enthusiasm. Albeit, there were a few stand out results that raised eyebrows – one auction we attended attracted 6 bidders and sold $175,000 above reserve. Situated in a coveted pocket of Ivanhoe with plenty of period appeal, it was no surprise to see emotional bidding which pushed the result into a ‘boom market’ price range (see ‘Auctions in the Spotlight’ for further details.)

This was the trend across all inner city suburbs. Properties with ‘standout’ attributes, which appeal to the major buyer demographic in the area, are performing consistently and not representing the general malaise lingering over the rest of the metro market. For example, 7/29B Hampden Road, Armadale, – a 2 bedroom apartment abundant with period detail with a quote of $590,000-$640,000 managed to attract strong bidding and sell for $737,000. It was another stand out result defying the overall trend represented in a 61 per cent year to date clearance rate.

However in view of the reality that only marginal rate drops are being passed on from our major four institutions (with a few still delaying announcement), the savings to the average mortgage holder ($600,000 and below) may provide a few dollars additional disposable income, but it’s unlikely to influence in the market in the short term. It historically takes weeks not days for rate drops to show themselves in median data.

Greater influences are issues of job security and the recent announcement by the RBA indicating the economy is weaker than initially predicted. Confidence is the biggest influence of growth in any market based on the fundamentals of tight supply and consistent demand. Therefore, if you’re looking towards a change in sentiment, it would perhaps be more apt to look at the polls rather than the cash rate.

Results so far this year are remarkably consistent as the 62 per cent clearance rate proves. It further emphasises that we’ve reached the bottom of the property cycle and in some suburbs, prices are starting to show hints of growth. However even though I don’t expect any great movement in the short-term, there’s a feeling of optimism across the industry that the news of more prospected interest rate drops may inspire those who have been sitting on the sidelines, to make a decisive move.

Weekend Clearance Rate Figures

Week Ending Sunday 6th May 2012
Clearance Rate:	62%
Total Auctions:	592
Sold:	368	Passed in:	224
At auction:	297	Vendor Bid:	131
Before auction:	69	Real bid:	93
After auction:	2
Total Private Sales:	646
Source: www.reiv.com.au

The NPB clearance rate is representative of the results evidenced in the ‘quality’ end of the marketplace. The increasing shortage of listings falling under this category, along with the rate drop, which will provide a benefit to most mortgage holders in the upper percentile of sales, is keeping the clearance rate consistently steady. As we mentioned a couple of weeks ago – we expect this trend to continue as we move into the winter months, during which stock levels seasonally drop to their lowest levels.

Weekend Clearance Rate Figures

Week Ending Sunday 6 May 2012
NPB Clearance Rate:	77%
Total Auctions Reviewed:	39
Sold:	30	Passed in:	9
Under $600k+:	10		2
$600k-$1m:	10		3
$1m+:	10		4

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 39 properties reviewed by NPB this weekend:

< $600k
Suburb	Type	Beds	Quote	Result
Richmond	Apartment	1	$400k+	SOLD $440,000
Hawthorn	Apartment	2	$400-440k	Passed In
Burwood	Unit	3	$440-480k	SOLD $460,000
St Kilda	Apartment	2	$400-440k	SOLD $467,750
Northcote	House	2	$470-510k	SOLD $507,500
Croydon	House	3	$450-500k	SOLD $522,000
Coburg	House	2	$460-510k	SOLD $565,000
Ivanhoe	Unit	2	$470-510k	Passed In
Elwood	Apartment	2	$510-550k	SOLD $568,000
Footscray	House	3	$450-500k	SOLD $570,000
West Footscray	House	3	$530-580k	SOLD $585,000
Cheltenham	House	4	$530-580k	SOLD $589,000
Sold	10
Passed In	2	NPB Clearance Rate 83%
Total	12

$600k – $1m
Suburb	Type	Beds	Quote	Result
Glen Iris	House	2	$600-650k	SOLD $715,000
Templestowe Lower	Townhouse	3	$690k+	SOLD $735,000
Armadale	Apartment	2	$590-640k	SOLD $737,000
Doncaster	Townhouse	3	$650-710k	Passed In
Collingwood	Townhouse	3	$710-760k	SOLD $800,000
Richmond	House	2	$650-690k	SOLD $801,000
Bentleigh	House	3	$750-820k	SOLD $864,000
Abbotsford	Townhouse	3	$800k+	SOLD $906,000
Brunswick	House	4	$800-880k	Passed In
Box Hill North	House	4	$830-870k	Passed In
Port Melbourne	House	2	$850-900k	SOLD $925,000
St Kilda East	House	3	$810-890k	SOLD $940,000
St Kilda	House	3	$870-930k	SOLD $950,000
Sold	10
Passed In	3	NPB Clearance Rate 77%
Total	13

$1m+
Suburb	Type	Beds	Quote	Result
Elwood	Apartment	3	$900-990k	SOLD $1,030,000
Brighton East	House	3	$1-1.1m	Passed In
Caulfield	House	4	$1.1-1.2m	Passed In
Middle Park	House	3	$1-1.1m	SOLD $1,127,500
Brighton	House	3	$890-990k	SOLD $1,157,000
Caulfield	House	3	$950-1050k	SOLD $1,265,000
Balwyn	House	5	$1.25-1.35m	Passed In
Hampton	House	4	$1.4-1.5m	SOLD $1,535,000
Richmond	House	4	$1.5m+	SOLD $1,600,000
Fitzroy North	House	3	$1.25-1.37m	SOLD $1,611,000
Ivanhoe	House	4	$1.45-1.55m	SOLD $1,735,000
Hawthorn East	House	4	$1.8-2m	Passed In
Camberwell	House	4	$2.5-3m	SOLD $3,425,000
Malvern	House	5	$3.8-4m	SOLD $4,865,000
Sold	10
Passed In	4	NPB Clearance Rate 71%
Total	14

Overall
Sold	30
Passed In	9	NPB Clearance Rate 77%
Total	39

AUCTIONS IN THE SPOTLIGHT

10 Kent Av, Brighton

10 Kent Av, Brighton Victoria

Reported by:Catherine Cashmore
Agent:Nick Johnston
Quote:$3Mil+
Crowd:60 people (approx.)
Bidders:2
On Market:N/A
Result:Passed in for $3.3Mil – reserve undisclosed

Comment:

A grand French Provincial house located a short distance from the bay. 4 bedrooms, 4 bathrooms and room for 5 cars in the basement garage. The crowd was around 40, and due to the weather the auction was held inside. Opening on a vendor bid of 3.25Mil, the auctioneer asked for increments of 100K, however only got a 10K K bid taking the price to 3.26Mil. He eventually got a second bid of 3.3Mil before the property passed in for negotiation.

11 Carn Ave, Ivanhoe

11 Carn Ave, Ivanhoe Victoria

Reported by:Antony Bucello
Agent:Hocking Stuart
Quote:$1,450,000 – $1,550,000
Crowd:80+ people (approx.)
Bidders:6
On Market:$1.560M
Result:SOLD $1.735M

Comment:

This was a stunning 4 bedroom 2 bathroom Edwardian. Quoted at 1.45-1.55 mil there were a sea of umbrellas outside the auction as well over 80 people gathered to watch. A surprising number showed interest with 6 bidders raising a hand. The auction opened on a real bid of 1.4Mil. Bidding was strong throughout and despite some buyers trying to break the increments down, the winning bidder held out with 10k jumps. Announced on the market at 1.56Mil the property finally sold over 100K above reserve for 1.735Mil. A very strong result.

37 Snowdon Ave Caulfield

Reported by:Catherine Cashmore
Agent:Buxton
Quote:POA
Crowd:15 people (approx.)
Bidders:0
Result:PASSED IN ON VENDOR BID

Comment:

37 Snowdon Ave Caulfield featured a basic 3 bedroom house on a large block of land measuring over 800 sqm. Opportunity to develop the land was ripe, however the bidders weren’t forthcoming. Opening on a vendor bid of 1.2Mil, a crowd of around 20 showed little interest and the home passed in.

21 Lawson St, Hawthorn East

Reported by:Robert Di Vita
Agent:Marshall White
Quote:POA
Crowd:65+ people (approx.)
Bidders:1
Result:PASSED IN

Comment:

A crowd of around 65 attended this auction of this 4 bedroom Californian bungalow renovated with panache including a swimming pool in the back yard. Proceedings kicked off with a vendor bid of 1.8Mil, this was followed with one genuine bid of 1.825Mil, before the home passed in for negotiation.

1/8 Balmoral Ave, Templestowe Lower

Reported by:Antony Bucello
Agent:Barry Plant
Quote:$690k+
Crowd:50 people (approx.)
Bidders:3
On Market:N/A
Result:SOLD AFTER PASSING IN

Comment:

Quoted at 690K plus, this front of 3, 3 bedroom 2 bathroom townhouse attracted a crowd of around 50 people. It was a non referral auction, therefore the auctioneer had to make 3 vendor bids ($690K, 700K, 710K,) before 3 bidders decided to step in. However it didn’t get far before interest was burnt out. Passing in at 724K it sold via negotiation for $735,000

142 Buckley St, Essendon

142 Buckley St Essendon Victoria

Reported by:Ashley Koenig
Agent:Nelson Alexander
Quote:POA
Crowd:40 people (approx.)
Bidders:1
On Market:N/A
Result:PASSED IN

Comment:

This 4 bedroom renovated grand Federation family home was somewhat compromised by its position on a busy road. However, around 40 people turned out in the rain to attend the auction. Opening on a vendor bid of $1.15Mil, the auctioneer asked for increments of 10K. With only one bidder showing interest and with no further bidding the property passed in for $1.16Mil. The home is now listed for private sale with an undisclosed price.

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

Antony Bucello and Catherine Cashmore from National Property Buyers

Email Antony
Email Catherine

30

Apr

Melbourne Property Market Weekly Update

Melbourne’s market place growing increasingly fragmented…

by Antony Bucello & Catherine Cashmore

Melbourne’s market place is growing increasingly fragmented. In an era where low interest rates are promoted by most sales agents as an indication of an imminent market uplift, it’s not proving to be the motivator for a large number of buyers who are more concentrated on their budget and own intrinsic buying requirements than speculating on a market that seems perpetually stuck on level ground. As such, it’s rare to see a buyer get carried away on emotion in this climate and as such the clearance rate remained on current trend at 60 per cent.

You can travel from one suburb where there is a clearance rate of 80 per cent and see heated bidding, to the neighbouring suburb with a clearance rate closer to 60 per cent and houses struggling to exceed the reserve.

Take Bentleigh/Bentleigh East for example where sales figures are strong and clearance figures have been beating the norm by a fair margin. (Bentleigh East’s year to date clearance rate is around 75%.) Every auction I’ve attended in the suburb this year has attracted more than one bidder and if not sold under the hammer, has managed to sell via negotiation on the day. Demand always seems to outstrip supply which is interesting because the Bentleigh and Bentleigh East market has a buyer demographic of principally ‘home buyers’ rather than investors, and more houses than apartments.

This falls in line with data from the ABS which shows loans approved for investors has fallen for the second month in a row whereas owner occupier loans have remained fairly stable.

Bentleigh and Bentleigh East tend to ripple from the more expensive suburbs surrounding them such as Caulfield and Brighton which have a higher median house prices. Both were suffering somewhat last year from low demand and significant drops in their median which was estimated by some to be close to 20 per cent as fewer top end ‘Million dollar plus’ homes sold. This year there’s been a marginal improvement but not enough to compare to the level of demand seen in other inner city suburbs and their clearance rates are below the average coming in at around 55 per cent.

Elsternwick is currently achieving the highest clearance rate of all areas that had more than 40 auctions. According to REIV its clearance rate is currently 83 per cent – consequently you won’t find any shyness from the buying market in this locality. However, the results are emphasized because Elwood is a comparatively small suburb and stock levels are tight. It’s therefore important for purchasers to understand and closely monitor the dynamics of each area before preparing a buying strategy.

The fragmentation in the market is not limited to neighbouring suburbs in the inner southeast. North of the city and in the western suburbs, the same differentiation between localities is evident. As always the good homes – quality listings – well suited to the average second home buyer demographic or young couple able to service a mortgage, are selling consistently. However, it’s hard to draw a line across the whole market and make sweeping statements of either a rise or fall in market sentiment.

The clearance rate in each suburb is an excellent barometer to gain good market knowledge of the heated interest by purchasers within a small suburban locality. It’s also important to get a feel of the percentage that has sold ‘under the hammer’ compared to those negotiated as a post auction sale. In an area like Bentleigh, most ‘appear’ to be selling under the hammer. In Elwood, properties are selling, but there’s evidence many are doing so behind closed doors (Elwood’s clearance rate is 61 per cent). The knowledge is essential from a negotiation perspective and should not be dismissed lightly.

In this week’s breakdown, results are as follows – inner city houses had a clearance figure of 68%, inner east houses 76% and inner south houses 67%. Residex released their March quarter data last week showing Melbourne’s house price had dropped 1.89% and units down 0.52%. This is in contrast to REIV figures which showed a marginal increase in the metro house price of 0.9%. Differences are down to variation in how the figures are collected and collated. However they show we have a way to go until the market – as a whole – shows overall evidence it’s transitioned from its flat platform.

Having said this, there is definite feeling of increased motivation in some areas coupled with a reduction of ‘quality listings’ in most suburbs. Aussie CEO John Symonds spoke on ‘Sunrise’ today indicating that the RBA would need to drop rates more than 25 basis points if they want the banks to pass on a proportion to mortgage holders. It further emphasizes how banks now control RBA movements rather than the reverse. As a buyer, it’s therefore essential that you employ a good broker to source the best deal available if you want to avoid the sleepless nights some are experiencing as a result of increased rate movements from the ‘big four.’

Weekend Clearance Rate Figures

Week Ending Sunday 29 April 2012
Clearance Rate:	60%
Total Auctions:	520
Sold:	310	Passed in:	210
At auction:	257	Vendor Bid:	130
Before auction:	53	Real bid:	80
After auction:	0
Total Private Sales:	507
Source: www.reiv.com.au

The NPB clearance rate has stayed fairly stable this week. Most properties are selling via negotiation and we have only seen a few auctions where results have pushed over our estimated opinion of value. Should the banks pass on an ‘expected’ interest rate cut by the RBA we may see a change in the prospective landscape and buyers pushing budget limits for the marginal quality stock available. This being the case, the NPB clearance rate would be expected to rise over coming weeks.

Weekend Clearance Rate Figures

Week Ending Sunday 29 April 2012
NPB Clearance Rate:	78%
Total Auctions Reviewed:	41
Sold:	32	Passed in:	9
Under $600k+:	11		2
$600k-$1m:	13		4
$1m+:	8		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 41 properties reviewed by NPB this weekend:

< $600k
Suburb	Type	Beds	Quote	Result
Glen Iris	Unit	1	$320-350k	SOLD $325,000
Epping	House	2	$300-330k	SOLD $325,000
Ormond	Apartment	1	$330-360k	SOLD $362,500
Reservoir	House	2	$370-400k	SOLD $407,000
Brunswick	House	2	$390-420k	SOLD $425,000
Albion	House	3	$400-440k	Passed In
West Melbourne	Apartment	1	$440k+	SOLD $460,000
Flemington	House	2	$420-460k	SOLD $466,000
Maidstone	House	2	$450-500k	SOLD $502,000
West Footscray	House	3	$440-470k	SOLD $535,000
Newport	House	3	$500-550k	SOLD $565,000
Richmond	House	2	$500-550k	SOLD $575,000
Balwyn North	Unit	2	$520-560k	Passed In
Sold	11
Passed In	2	NPB Clearance Rate 84%
Total	13

$600k – $1m
Suburb	Type	Beds	Quote	Result
Moonee Ponds	House	2	$550-600k	SOLD $605,000
Bentleigh East	House	2	$550-600k	SOLD $605,000
Yarraville	House	2	$550-600k	SOLD $620,000
East Melbourne	Apartment	2	$550-590k	SOLD $628,000
Caulfield South	House	2	$580-620k	SOLD $637,000
Spotswood	House	3	$550-600k	SOLD $637,000
Aspendale	House	3	$600-650k	Passed In
Doncaster	House	3	$600-650k	SOLD $670,000
Hampton East	House	3	$620-660k	SOLD $671,000
Hughesdale	House	3	$640-680k	SOLD $682,000
Viewbank	House	4	$600-660k	SOLD $685,000
Hawthorn	Apartment	3	$700k+	Passed In
Templestowe	House	4	$700-750k	SOLD $761,000
Mordialloc	House	3	$700-750k	Passed In
Kingsville	House	2	$750-800k	Passed In
Ascot Vale	House	3	$760-820k	SOLD $877,000
South Yarra	Townhouse	2	$900-950k	SOLD $950,000
Sold	13
Passed In	4	NPB Clearance Rate 76%
Total	17

$1m+
Suburb	Type	Beds	Quote	Result
Collingwood	House	3	$1-1.1m	SOLD $1,110,000
Brighton	Townhouse	3	$1-1.1m	SOLD $1,160,000
Camberwell	House	3	$1.1-1.2m	SOLD $1,206,000
Box Hill	House	3	$1.1-1.2m	Passed In
Sandringham	House	4	$1.15-1.25m	SOLD $1,253,000
Hampton	House	3	$1.2m+	SOLD $1,300,000
Hampton	House	4	$1.2-1.3m	SOLD $1,366,000
Fitzroy North	House	3	$1.35-1.5m	Passed In
Glen Iris	House	4	$1.4m+	SOLD $1,625,000
Hawthorn East	House	5	$1.7m+	SOLD $1,965,000
Middle Park	House	4	$3.8-4m	Passed In
Sold	8
Passed In	3	NPB Clearance Rate 72%
Total	11

Overall
Sold	32
Passed In	9	NPB Clearance Rate 78%
Total	41

AUCTIONS IN THE SPOTLIGHT

30 Blamey St, Bentleigh East

Reported by:Catherine Cashmore
Agent:Buxton
Quote:$530-580k
Crowd:40 people (approx.)
Bidders:2
On Market:$595k
Result:SOLD $605,000

Comment:

A classic cream brick 3 bedroom family home well priced in terms of the suburb median house price, thereby providing a good entrance point for someone wanting a ‘foot through the door’. The auction was well attended with a crowd of around 40. Quoted at 530-580k, the auction opened with a genuine bid of 550k. Going upwards with competitive bidding from two buyers, it reached its on market price at 595k and sold above reserve for 605k. A fair result in the current market.

61 Saturn St, Caulfield South

61 Saturn St, Caulfield South Sold

Reported by:Catherine Cashmore
Agent:Biggin Scott
Quote:POA
Crowd:40 people (approx.)
Bidders:3
On Market:$637k
Result:SOLD $637k

Comment:

The auction of this ‘one of a pair’ semi-detached was well attended and a good ‘foot in the door’ opportunity for a young couple. The period charm further inspired interest, however it took a vendor bid of 590k to get the auction moving. Healthy interest from 3 bidders took the price to 637K before the auctioneer took his half time break. On return he mentioned the home was not yet at market value, however the vendors had decided to place it ‘on the market’ (a rarity to see vendors so ready to meet the current climate). The strategy backfired somewhat, because it didn’t inspire further bidding and sold under the hammer for 637K.

7 McGrath St, Caulfield

Reported by:Catherine Cashmore
Agent:Hocking Stuart
Quote:$750k – 790k
Crowd:15 people (approx.)
Bidders:0
Result:PASSED IN ON VENDOR BID

Comment:

Quoted at $750,000 – $790,000, The 3 bedroom townhouse only inspired a small crowd. Opening on a vendor bid of $750K, it failed to progress further and consequently passed in with an undisclosed reserve.

1/10 Sutherland St, Coburg

Reported by:Antony Bucello
Agent:Hocking Stuart
Quote:$520k – $560k
Crowd:40 people (approx.)
Bidders:1
Result:SOLD AFTER PASSING IN

Comment:

The auction was well attended – with around 40 people watching, however only one buyer came to the fore with a bid of 540K after which it passed in for negotiation and sold shortly afterwards for $560K.

8 Bloom St, Moonee Ponds

Reported by:Antony Bucello
Agent:Dowling
Quote:$550k – $600k
Crowd:40 people (approx.)
Bidders:2
On Market:$600k
Result:SOLD UNDER THE HAMMER $605,000

Comment:

Another ‘foot in the door’ opportunity for a young couple. This charming period property was presented well, with plenty of room to update and renovate. The auction opened with a vendor bid of $500,000. Two bidders took an interest and it soon reached its market price of $600,000. It sold shortly afterwards for $605,000.

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

Antony Bucello and Catherine Cashmore from National Property Buyers

Email Antony
Email Catherine

16

Apr

Melbourne Property Market Weekly Update

A 55 per cent Clearance Rate – Good News or Bad News for Buyers?

A 55% clearance rate is the lowest we’ve had so far this year. However, in a weekend where only 369 auctions were scheduled, an overall sales figure combining both private sales and those sold at (or before) auction of 686, is in line with expectation. This week also saw the REIV announce Victoria’s median house price has stabilized with only a marginal increase of 0.9 per cent over the first quarter. This moves us from a revised December quarter median of $530,000 to a March quarter median of $535,000. Due to Christmas and Easter both affecting turnover in the first quarter of any year, a drop in the median house price is usually expected. Therefore, prices’ remaining stable keeps us on a level playing field signifying it’s still a ‘buyer’s market’.

The Terrain ahead may be full of unknowns as far as Victoria is concerned, with news this week that we’re facing a rise in unemployment state wide, as well as further worries concerning interest rate rises as the ANZ push up rates independent of the RBA – (we fully expect the others to follow suit.) However, for those looking to purchase property, a flattening in demand is an opportunity not to miss. Waiting for the market to turn towards an upward cycle of the property clock is not wise for those wanting to secure an ‘investment’ at the best possible price thereby making the most of any capital gains when they do eventuate.

It’s also important from a negotiation stand point to understand the dynamics of who sells in a terrain where there’s little growth occurring. At the moment we’re seeing a split between those who need to sell – either downsizing into more affordable accommodation or moving due to a change of job or financial situation – and those who are just ‘testing’ the market for some hapless home buyer to materialize prepared to pay the vendor’s ‘wish price’. Sourcing the ‘need to sell’ vendors is the key to securing a good price however, expect negotiations to take a longer period of time as both sides come to an ‘agreement’.

As is always the case in times of uncertainty buyers and sellers act with caution – and in many a case, vendors will delay a move until the waters have calmed. Every agent I’ve spoken to over the last few weeks has been reporting lower stock levels than this time last year. Certainly – if you do a search through just those listings advertised – there isn’t an abundance of choice available, at least not quality stock. If we see a substantial drop in listings, the continual rise in Melbourne’s population will dictate a movement into the next phase of the oft-quoted ‘property clock’ in the inner and middle ring suburbs where land is scarce. However, it would take a period of time before this is evidenced in the official statistics.

Overall, it’s a good time for buyers and judging from the numbers attending opens and auctions each weekend – prospective purchasers are not short on the ground. For the investors out there, yields have increased and in our property management department alone, we’ve fielded numerous offers for some listings far above the advertised weekly rental. Finding a tenant for good property isn’t a difficult task in the current climate. For the homebuyer, today’s market promises stability, little movement, and a chance to negotiate favourably.

There are approximately 610 auctions expected next weekend.

Weekend Clearance Rate Figures

Week Ending Sunday 15 April 2012
Clearance Rate:	55%
Total Auctions:	369
Sold:	202	Passed in:	282
At auction:	167	Vendor Bid:	167
Before auction:	34	Real bid:	115
After auction:	1
Total Private Sales:	484
Source: www.reiv.com.au

The NPB clearance rate has dropped from last week, which is largely in line with results published by the REIV. This is no surprise considering the low number of auctions scheduled over the weekend and Victoria’s economic prospectus as explained in our market wrap. With fewer quality listings coming onto the market, we expect the clearance rate to remain stable over the coming weeks and perhaps rise as competition around existing ‘good’ property increases.

The full list of the 38 properties reviewed by NPB this weekend:

Weekend Clearance Rate Figures

Week Ending Sunday 15 April 2012
NPB Clearance Rate:	71%
Total Auctions Reviewed:	38
Sold:	27	Passed in:	11
Under $600k:	10		3
$600k-$1m:	8		3
$1m+:	9		5

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.

< $600k
Suburb	Type	Beds	Quote	Result
Prahran	Apartment	1	$300-330k	SOLD $332,500
Preston	Apartment	2	$310-340k	SOLD $360,500
Reservoir	Unit	3	$370-400k	SOLD $398,000
Doncaster East	Unit	2	$360-390k	SOLD $400,000
Burwood	Unit	2	$380-410k	SOLD $415,000
Ascot Vale	Townhouse	2	$380-420k	SOLD $425,000
Ormond	Unit	2	$410-450k	SOLD $461,000
Footscray	Unit	3	$440-470k	PASSED IN
Richmond	Apartment	2	$450-500k	PASSED IN
Armadale	Apartment	2	$460-500k	SOLD $500,000
Hawthorn	Apartment	2	$480-520k	SOLD $570,000
Coburg	Townhouse	3	$480-530k	SOLD $577,000
Newport	House	2	$550-600k	PASSED IN
Sold	10
Passed In	3	NPB Clearance Rate 77%
Total	13

$600k – $1m
Suburb	Type	Beds	Quote	Result
Cheltenham	House	4	$630-670k	SOLD $675,000
South Yarra	Apartment	2	$600-660k	SOLD $690,000
Brighton East	Townhouse	2	$650-700k	PASSED IN
Toorak	Apartment	3	$700-750k	SOLD $752,500
Eltham	House	3	$750-800k	SOLD $800,000
Heidelberg	House	3	$750-800k	SOLD $805,000
Hawthorn	House	2	$770-820k	SOLD $845,000
Brunswick	House	4	$780-840k	PASSED IN
Williamstown	House	3	$800-850k	SOLD $850,000
Moonee Ponds	House	3	$880-930k	PASSED IN
Williamstown	House	4	$900-990k	SOLD $990,000
Sold	8
Passed In	3	NPB Clearance Rate 73%
Total	11

$1m+
Suburb	Type	Beds	Quote	Result
Alphington	House	3	$900-990k+	SOLD $1,030,000
Hampton	House	3	$990-1090k	SOLD $1,200,000
Surrey Hills	House	4	$1-1.1m	PASSED IN
Northcote	House	5	$1.1-1.2m	SOLD $1,200,000
Caulfield North	House	4	$1.1-1.2m	PASSED IN
Kew	House	6	$1.1-1.2m	PASSED IN
South Melbourne	House	3	$1.1-1.2m	PASSED IN
Sandringham	House	3	$1.09-1.19m	SOLD $1,215,000
Surrey Hills	House	4	$1.25-1.35m	SOLD $1,395,000
Brighton	House	4	$1.3-1.4m	SOLD $1,450,000
Black Rock	House	3	$1.4-1.54m	SOLD $1,500,000
Fitzroy	House	4	$1.6-1.7m	SOLD $1,745,000
Port Melbourne	Apartment	4	$1.7-1.8m	SOLD $1,875,000
East Melbourne	House	3	$1.9-2m	PASSED IN
Sold	9
Passed In	5	NPB Clearance Rate 64%
Total	14

Overall
Sold	27
Passed In	11	NPB Clearance Rate 71%
Total	38

AUCTIONS IN THE SPOTLIGHT

83 Mason St, Newport

83 Mason St, Newport Victoria

Reported by:Catherine Cashmore
Agent:Hocking Stuart
Quote:$550-600k
Crowd:25 people (approx.)
Bidders:0
Result:PASSED IN ON A VENDOR BID

Comment:

A 2 bedroom period home situated on a corner block and subject to traffic noise from Mason road. The home was quoted $550,000-$600,000 and presented nicely inside with off street parking facilities. The auction attracted a small crowd but little visible interest. Opening on a vendor bid of $550k, the home passed in with a reserve of $600,000.

2A Alfred St, Coburg

Reported by:Antony Bucello
Agent:Brad Teal
Quote:$480-530k
Crowd:60 people (approx.)
Bidders:5
Result:SOLD UNDER THE HAMMER

Comment:

A crowd of around 30 attended the auction. Opening on a genuine bid of $470K, 2 bidders competed and the action was strong. By $512K the bidding had broken down to 1K increments, however it failed to advance past this number and passed in. The home was successfully negotiated post auction for $515K.

26 Lesney st, Richmond

Reported by:Catherine Cashmore
Agent:Biggin & Scott
Quote:$750,000+
Crowd:30 people (approx.)
Bidders:3
Result:SOLD UNDER THE HAMMER

Comment:

This property is compromised by its position close to the train line. However, this didn’t deter buyers who saw development potential in the 4 bedroom period home ripe for renovation. Quoted at $750,000+ the auction opened on a genuine bid of $700,000. Moving rapidly with two bidders fighting it out, it didn’t take long for the numbers to reach the high $700,000s. The auction stalled around $780,000. However, a quick trip to see the vendor didn’t result in it going on market. Bidding resumed, and at $795,000 a second trip to see the vendor bought success. Announced on the market at $795,000, the home sold with strong competition to a third bidder at $825,000. A solid result in the current market.

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

Antony Bucello and Catherine Cashmore from National Property Buyers

Email Antony
Email Catherine

26

Mar

Melbourne Property Market Weekly Update

by Antony Bucello & Catherine Cashmore

Market activity lifts

We’ve been used to seeing weekly clearance rates languish in the 50 percentile throughout the latter half of 2011; therefore this weeks 61 per cent clearance rate is something to take note of.

According to NAB’s Quarterly Australian Residential Property Survey, market sentiment is improving. Consumer confidence was the primary reason for last year’s downturn; therefore an uplift in sentiment is a significant change. A full breakdown of their results can be found here.

There are a few interesting aspects to the current market. Whilst a higher clearance rate is a positive indication of increased market activity, there’s still a fair distance between the number of properties selling ‘under the hammer’ and those being negotiated after a pass in.

One of the bugbears of the industry resides around the lack of transparency that distinguishes the difference. Agents aren’t required to disclose which sell under the hammer and which are negotiated after passing in – all results are reported as ‘Sold at Auction’.

However, noting the distinction is an important piece of information we need to accurately ascertain market sentiment. If an increased number of properties are selling under the hammer, there’s every indication we’ve moved into an upward trajectory of the property cycle that will eventually translate into higher property prices.

However, if the numbers selling are generally ‘via negotiation’, it signifies there are still good options available for those ‘astute’ in price assessment and negotiation. It’s certainly advantageous for those using a ‘buyer advocate‘ to negotiate on their behalf.

The other important indicator that we’ve not entered an upward trajectory ‘just yet’, are the numbers selling prior to auction. Agents will generally only negotiate ‘prior’ to the date if they’re confident there’s not enough competition to achieve the sale price ‘desired’ by the vendor ‘under the hammer’. It’s also interesting to note that the number of properties sold prior has not diminished on the back of the changes to the ‘cooling off’ rules.

It’s now impossible to wave cooling off rights three business days out from an auction – (which has – until now – been a usual requirement by sales agents when negotiating pre auction sales). In other words, if an agent gets an offer prior to auction that’s accepted by the vendor, there’s a three business day wait before they can confidently announce the property as ‘SOLD’. It complicates the process for many reasons – however at this point in time, agents are keen to wrap up deals quickly.

Again, those experienced in the art of property negotiation will benefit in this market.

Finally, do a property search through the Internet and you’ll see a dearth of quality listings available on the ‘open’ market and an abundance of poorly located (or undesirable) properties ‘hanging around.’ We buy a large percentage of properties ‘off market’, however in a ‘boom’ market, all properties tend to sell and ‘time on the market’ is reduced. We haven’t reached this stage yet and only the quality listings are attracting this ‘increased’ activity represented in the 61 per cent clearance rate.

So the conclusion we can draw from the above is a higher degree of activity in the market place will eventually translate to a lift in the median house price along with reduced opportunity to negotiate. However for the time being, the market is still proving favourable for buyers.

The NPB Clearance Rate for the week was 74% – which falling in line with the REIV results, is slightly higher than last week’s clearance rate. We reviewed a total of 42 properties of which 31 properties sold and 11 passed in.

The NPB clearance rate is reflective of the uplift in sentiment mirrored in the REIV’s clearance results. Although it’s too early to draw too many conclusions, an indication of increased activity has been perceptible at all open for inspections and auctions we’ve attended.

Demand in the sub $1m price bracket is still stronger. However in comparison to late last year, the $1m plus market is also showing signs of a potential uplift.

National Property Buyers weekly clearance rate

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 42 properties reviewed by NPB this weekend:

Auctions in the Spotlight

3/4 Marma Rd, Murrumbeena

Reported by: Antony Bucello
Agent: Thomson
Quote: $470 – $520K
Crowd: 25 people (approx.)
Bidders: 2
Result: SOLD UNDER THE HAMMER

Comment: The auction opened on a vendor bid of $470K. Two bidders competed and the price reached $502k fairly quickly. After a short discussion with the vendor, the auctioneer returned to announce the property ‘on the market’. The same two bidders continued to fight it out until the property sold under the hammer for $512k.

4/30 Edgar St, Kingsville

Reported by: Catherine Cashmore
Agent: Hocking Stuart
Quote: $470 – $510K
Crowd: 30 people (approx.)
Bidders: 2
Result: SOLD AFTER PASSING IN

Comment: A crowd of around 30 attended the auction. Opening on a genuine bid of $470K, 2 bidders competed and the action was strong. By 512K the bidding had broken down to 1K increments, however it failed to advance past this number and passed in. The home was successfully negotiated post auction for $515K.

30 Crofton Dr, Williamstown

Reported by: Catherine Cashmore
Agent: Compton Green
Quote: $1Mil – $1.1Mil
Crowd: 25 people (approx.)
Bidders: 5
Result: SOLD AFTER PASSING IN

Comment: The auction opened on a vendor bid of $1Mil. However following a genuine bid of $1.025Mil, no other interest was forthcoming. The home passed in and was later negotiated for an undisclosed price in excess of the quoted range.

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

Antony Bucello and Catherine Cashmore from National Property Buyers

Email Antony

Email Catherine

19

Mar

Melbourne Property Market Weekly Update

by Antony Bucello & Catherine Cashmore

The REIV clearance rate scraped in at 60% this weekend which is an improvement on last week’s rate of 58% and more in line with the two weekends prior to Labour Day.

As we’ve pointed out previously, the clearance rate is not the best overall indicator of market health – for this it’s more important to take note of the total number of reported sales – both private treaty and Auction. Thus far, turnover rates for 2012 have been good and going on from last year, better than expected.

Historically between 800 and 1200 properties sell each week in Melbourne (as reported by the REIV) and since the last weekend in February, activity has been ripe with sales figures averaging well in excess of 1000 each week. This weekend, even though there were only 645 scheduled auctions reported (REIV); total number of properties sold came in at 971.

Other results show slightly more deals than usual are being completed prior to auction with 54 scheduled auctions recorded as ‘before auction’ sales. This is important information to take into account from a negotiation perspective and indicates selling agents are still not overly confident they have the needed buyer activity to meet vendor expectation ‘under the hammer’. Therefore it’s still a negotiators market and for experienced property buyers, there are plenty of good deals available.

State wide, agents are reporting a drop in stock in comparison to last year. This will eventuate in upward pressure on prices as we progress throughout the year. Already there’s an increase in the number of bidders attending auctions of quality property. Out of the 4 Auctions National Property Buyers attended this weekend, three attracted 3 – 5 bidders which is a definite improvement on last year’s figures.

The following two weekends will give a good indication if the current trend will continue with 820 auctions scheduled next week, and 1,070 for the week following. As far as the economy is concerned, early indications are good.

The NPB Clearance Rate for the week was 73%. We reviewed a total of 48 properties and 35 properties sold and 13 passed in.

Considering the average home loan hovers between $290,000 and $327,000 depending on which state you purchase into, it’s no surprise to see strong demand in the lower sub $600,000 price bracket. This demand is strongly represented in the middle and outer city ring suburbs where median house prices are generally lower.

However there’s been a definite uplift in the $1m+ market which is predominantly populated with ‘upgraders’ and duel income professional city workers. As overall demand improves, the top end of the market – which is understandably more volatile – will action the strongest recovery rates – (having dropped some 10-20% in various localities). Therefore if you’re thinking of upgrading, the best deals can be secured now.

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 48 properties reviewed by NPB this weekend:

AUCTIONS IN THE SPOTLIGHT

7/102 Albert St East Melbourne

Reported by: Robert Di Vita
Agent: Caine Real Estate
Quote: $500-550k
Crowd: 40 people (approx.)
Bidders: 4
Result: SOLD UNDER THE HAMMER

Comment: This original 2 bedroom apartment opposite beautiful parkland attracted a crowd of around 40-45 people. The auction started with a real opening bid of $500k, with a further 2 parties getting involved. The property was announced on the market when it reached $520k, and sold under the hammer for $540k.

142 Brighton St, Richmond

Reported by: Catherine Cashmore
Agent: Bennison Mackinnon
Quote: $800-850k
Crowd: 60 people (approx.)
Bidders: 0
Result: SOLD AFTER PASSING IN

Comment: A well located period property in the heart of Richmond. The house is fully renovated with 2 good sized bedrooms and central bathroom – however with no off street parking on title, buyer demand wasn’t quite at the level needed to attract competitive bidding. The auction passed in on a vendor bid of $825,000 however subsequent interest followed and it was successfully negotiated post auction for $865,000.

33 Tucker St West Footscray

Reported by: Antony Bucello
Agent: Sweeney
Quote: $480-520k
Crowd: 50 people (approx.)
Bidders: 5
Result: SOLD UNDER THE HAMMER

Comment: On a beautiful autumn day, around 50 people gathered to watch this well positioned un-renovated 3 bedroom weatherboard home go under the hammer. It didn’t take long for the opening bid of $490k to eventuate and that was followed by bidding from a further 4 parties. The property was announced on the market at $520k and eventually sold under the hammer for $550k.

10 Separation St Northcote

Reported by: Antony Bucello
Agent: Nelson Alexander
Quote: $550-600k
Crowd: 30 people (approx.)
Bidders: 3
Result: SOLD UNDER THE HAMMER

Comment: The agent decided to auction this 2 bedroom cottage in the rear yard due to its busy road location, however that didn’t deter 3 parties from putting their hands up to try and claim a piece of this well presented and comfortable home. The auction started with a real bid of $550k, and that followed by quick bidding until the price reached $630k. The agent had no need to refer with the vendor and announced the property as being on the market. A third bidder entered the arena but was unable to shake the opening bidder, who eventually purchased the property for $645k.

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

Antony Bucello and Catherine Cashmore from National Property Buyers

Email Antony
Email Catherine

13

Mar

Melbourne Property Market Weekly Update

by Antony Bucello

The Labour day long weekend in March every year is historically a quiet weekend for auctions and this year was no exception.

According to the REIV, there were only 170 auction results that were reported in to date, with 99 sold and 71 passing in, indicating a clearance rate of 58%.

Of the 71 properties that passed in, 41 passed in on a vendor bid, and 30 on real bids.

This weeks’ clearance rate is down only slightly on last weeks revised REIV clearance rate of 61%, however I wouldn’t read too much into this weeks’ result simply as there is not enough auction activity.

On the same long weekend last year, the clearance rate was reported as being 65%.

It will be interesting to see what happens over the remainder of March, which I expect to remain fairly consistent with what occurred during February.

That is, clearance rates will continue to hover around the 60-65% mark which will confirm the Melbourne property market is performing stronger than it was in the last quarter of 2011.

Even more importantly will be to see what happens in the 2nd quarter, April through to June.

Following this period, we will be able to measure the overall improvement of the property market.

While the auction numbers were down, there was still a very good amount of property transactions taking place through private sales.

There were over 600 properties sold by private sale this week.

The REIV has indicated that there are around 700 properties scheduled to go to auction next weekend and similar high numbers for the following 2 weekends.

It was a quieter week for the team at NPB as the long weekend resulted in considerably less properties going to auction.

The NPB Clearance Rate was 71% from the 24 properties we reviewed over the weekend, down a little on last weeks’ 76%. A total of 17 properties sold and 7 passed in.

The lower end of the market (under $600k) had a strong performance with 6 of the 8 properties we reviewed selling and 2 passing in.

The middle range category ($600k-$1m) had another healthy performance with a NPB clearance rate of 71%, with 10 of the 14 properties we reviewed selling and 4 passing in.

We only reviewed 2 properties at the high end of the market ($1m+) and 1 sold and 1 passed in, giving us a clearance rate of 50%.

However I wouldn’t read too much into this weeks’ clearance rate as there are simply not enough results to give an accurate indication of market performance.

We will however include these results in our monthly, quarterly and annual statistical analysis.

The full list of the 24 properties reviewed by NPB this weekend:

Auctions in the Spotlight

3/18 Corhampton Rd Balwyn North

Reported by: Robert Di Vita
Agent: Hocking Stuart
Quote: $420-460k
Crowd: 60 people (approx.)
Bidders: 5
Result: SOLD UNDER THE HAMMER

Comment: This unrenovated two bedroom villa unit in a beautiful part of Balwyn North attracted a healthy crowd of approx. 55-60 people. The opening bid was a real one at $390k and with competitive bidding between an additional 4 bidders, it was announced on the market when it reached $460k – the top end of the quoted range. It eventually sold for $491k.

3 Tie St Mont Albert North

Reported by: Robert Di Vita
Agent: Hocking Stuart
Quote: $600-650k
Crowd: 40 people (approx.)
Bidders: 1
Result: PASSED IN

Comment: This modest freestanding 3 bedroom weatherboard home attracted a crowd of around 35-40 people. With nobody willing to put their hand up to start proceedings, Hocking Stuart’s auctioneer kicked off the auction with a vendor bid of $600k. With still no willingness from the crowd to participate, a second vendor bid of $610k followed. The first genuine bid came a little while later at $620k and with no further bids it was referred to the vendor and passed in. The property remains for private sale.

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
antony.bucello@nationalpropertybuyers.com.au
0418 131 950

05

Mar

Melbourne Property Market Weekly Update

by Antony Bucello

The auction clearance rate as reported by the REIV was 62% on the weekend, with 497 properties selling from the 797 auctions that took place.

A total of 300 were passed in, of which 186 passed in on a vendor bid.

At the same time last year, the clearance rate was 64%.

Antony Bucello discusses this weekend’s Melbourne property news – things are looking up?

Now that we have seen an adequate number of auctions in 2012 in order to form an informed opinion, there is no question that the Melbourne property market overall is performing better than it was in the latter stages of 2011.

The weekend’s results indicate that the improved demand that was evident last weekend (revised clearance rate 61%) has been maintained and that is likely to result in improved buyer confidence over the next few months.

The market is considered a balanced market when clearance rates fall in the range of 65-75%.

The REIV is only expecting around 200 auctions for next week due to the Labour Day long weekend.

However the number of auctions is expected to increase substantially over the remaining weekends of March.

National Property Buyers reviewed and monitored a total of 42 properties that were scheduled to go to auction over the weekend.

A total of 32 properties found new owners and 10 were passed in, equating to a 76% NPB Clearance Rate.

This weeks’ NPB Clearance Rate is consistent with last weeks’ NPB Clearance Rate of 75%.

Of the 4 auctions we physically attended on Saturday on behalf of clients, all 4 sold.

Interestingly, the high end of the market, representing properties that sell over $1m, performed strongest this week with a NPB Clearance Rate of 84%. We reviewed 13 properties in this category and 11 of those sold and 2 passed in.

The middle range sector, which is properties that fall in the $600k-$1m range, came in with a NPB Clearance Rate of 73%. 11 of the 15 properties we monitored sold and 4 passed in.

The low end of the market, made up of properties that sell under $600k, had a NPB Clearance Rate of 71%, with 10 of the 14 properties selling and 4 passing in.

With an unquestionable increase in clearance rates, the Melbourne property market appears to have bottomed out and those looking to buy should seriously consider starting the search process now.

There will be a small window of opportunity, and those looking at buying the right property now will be well placed in being able to securing a good deal.

The full list of the 42 properties reviewed by NPB this weekend:

AUCTIONS IN THE SPOTLIGHT

2/13 Elm Grove McKinnon

Reported by: Antony Bucello
Agent: Buxton
Quote: $400,000 – $460,000
Crowd: 20 people (approx.)
Bidders: 1
Result: SOLD AFTER PASSING IN

Comment: This ground floor 2 bedroom apartment in prime McKinnon location managed to draw a crowd of only around 20 people due to the wet and rainy conditions. Buxton’s auctioneer managed to extract a real opening bid of $400,000 and this was followed by a vendor bid of $420,000. With the opening bidder placing one further bid of $430,000, the property passed in and post auction negotiations saw the property achieve a healthy sale price of $467,000.

8/10 The Avenue Prahran

Reported by: Robert Di Vita
Agent: Hocking Stuart
Quote: $580,000 – $635,000
Crowd: 50 people (approx.)
Bidders: 5
Result: SOLD UNDER THE HAMMER

Comment: Despite the miserable wet Melbourne weather, this sensational 2 bedroom apartment with villa unit like proportions attracted a healthy crowd of more than 50. It didn’t take very long for the auction to start with an opening bid of $620k and it was soon announced as being “on the market” when the bidding reached $635k, the top end of the quoted range. With strong aggressive bidding between 5 interested parties, the property eventually sold for $696k under the hammer with very strong competition.

125 Steele Street Collingwood

Reported by: Robert Di Vita
Agent: Hocking Stuart
Quote: $500,000 – $550,000
Crowd: 20 people (approx.)
Bidders: 1
Result: SOLD AFTER PASSING IN

Comment: A very modest crowd of only 20 were present at this unrenovated fully attached Victorian cottage. Hocking Stuart’s Andrew James wasn’t able to extract a real bid so he kicked off proceedings with a vendor bid of $490,000 and with no bids at all from the crowd, he referred to the vendor for instructions. Upon his return, only one bid was placed for $500,000 and the auctioneer passed the property in. While it was a very uneventful auction, post auction negotiations between the only interested party and the vendor saw the property eventually sell for $530,000.

53 Daisy Street Essendon

Reported by: Antony Bucello
Agent: Barry Plant
Quote: $1.15m+
Crowd: 60 people (approx.)
Bidders: 2
Result: SOLD AFTER PASSING IN

Comment: This 6 bedroom Edwardian in one of Essendon’s best streets attracted a crowd of around 60 despite the wet and wild Melbourne weather. Barry Plant’s auctioneer kicked off with a vendor bid of $1.1m and that was followed by reasonably strong bidding between 2 parties. The property was referred at $1.23m and with no further bids was passed in. The property eventually sold in post auction negotiations to the highest bidder for $1.265m.

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
antony.bucello@nationalpropertybuyers.com.au
0418 131 950

27

Feb

Melbourne Update by Antony Bucello

The REIV has reported a weekend clearance rate of 63% from the 772 auctions that took place.

A total of 484 properties sold and 288 passed in, 189 of which passed in on a vendor bid.

Last week’s revised clearance rate was 57% and at the same time last year, the clearance rate was reported at 64%.

With an increase in the number of auctions held, a 63% clearance rate indicates that demand for Melbourne property is slowly increasing.

Even with the temperature reaching the high 30′s on Saturday, auction crowds were generally very good and many believe the market may have bottomed out.

With February’s auction’s now over, there is talk of a turn in the market. Clearance rates are stronger than what they were in the last quarter of 2011.

While there are plenty of buyers out looking for property, there doesn’t appear to be a real sense of urgency and many are prepared to wait for the right property to come along.

Overall, encouraging results for vendors on the weekend, which may just sway many more that are considering selling to take the plunge and put their property on the market.

The REIV is expecting around 860 auctions for the first weekend of March and that will be followed by a significant reduction the following week for the Labour Day long weekend.

The NPB Clearance Rate for auctions reviewed over the weekend was 75%, up 6% from last week’s 69%.

We monitored a total of 48 properties this week, of which 36 sold and 12 passed in.

The lower end of the market performed strongest with a category clearance rate of 81%, up considerably on last weeks’ 63%. We reviewed a total of 16 properties and 13 of those sold and only 3 passed in.

The middle range category had another consistent week with a clearance rate of 75%. 12 of the 16 properties we reviewed found new owners and 4 were passed in. This category had a clearance rate of 76% last week.

The high end of the market also remained consistent with a clearance rate of 69%. We reviewed a total of 16 properties in this category and 11 of those sold and 5 passed in. Last weeks’ clearance rate for this category was 70%.

3 of the 4 auctions we physically attended on Saturday on behalf of clients all sold with multiple competition at each.

With February’s auction now over, there is no doubt there are early indications that the market is picking up.

The market in March is expected to perform very similar to February, if not slightly better, particularly in both the lower end and middle range categories.

The full list of the 48 properties we reviewed this weekend:

Auctions in the Spotlight

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
antony.bucello@nationalpropertybuyers.com.au
0418 131 950

20

Feb

Melbourne Property Market Weekly Update

by Antony Bucello

The weekend’s clearance rate has been reported by the REIV as being 59%. There were a total of 579 auction results reported and 341 of those sold and 238 passed in, 155 of which passed in on a vendor bid.

This weeks’ clearance rate has dipped slightly from last weeks revised clearance rate of 64%, however this weekend saw auction numbers more than double compared to last weekend. At the same time last year, the clearance rate was 63%.

Antony Bucello discusses this week’s Melbourne property news

Although it is still too early to ascertain whether the Melbourne property market has turned, there has been an overall improvement of sales of inner-city property. There is a sense that the market may have bottomed out. We will have to wait for the next 2 weekends of auctions to confirm any obvious change of trend.

The REIV is expecting around 880 auctions for the final weekend of February and that will be followed by around 870 for the first weekend of March. Auction numbers are expected to reduce for the second weekend of March as many agents and vendors avoid taking their properties to auction on the Labour Day long weekend.

Crowds at auctions and open for inspections on the weekend were very healthy and agents are indicating that the good properties are generating very good interest.

Melbourne auction results by National Property Buyers

The NPB Clearance Rate overall this week was 69%, down 1% from last week’s 70%.

We reviewed a total of 46 properties this week, of which 32 sold and 14 passed in.

The middle range category, which consists of properties that sell between $600k – $1m, performed best again this week with a clearance rate of 76%, even though it is down 3% from last week. 13 of the 17 properties we reviewed in this category sold and 4 passed in.

The high end of the market, which is properties that sell over $1m, had another very solid performance this week with a clearance rate of 70%, up 10% on last weeks’ 60%. We reviewed a total of 10 properties in this category and 7 of those sold and 3 passed in.

The lower end of the market (<$600k), had a clearance rate of 63%, with 12 of the 19 properties we reviewed finding new owners and 7 passing in.

Good properties continue to sell well under competition when the vendor is willing to meet the market.

The full list of the 46 properties we reviewed this weekend:

Melbourne property auction clearance rates

Auctions in the Spotlight

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
antony.bucello@nationalpropertybuyers.com.au
0418 131 950