February kickstarts a booming 2022 auction market
In February’s first two weekends the Real Estate Industry of Victoria (REIV) recorded more than 1,284 auctions. 889 properties sold, 681 at auction, with 237 passed in. 208 properties were sold before auction. The clearance rate averaged 80%, sharply up on December’s 76%.
Auction numbers are ramping up with last weeks total topping 1000 for the time this year. Buyers are going in hard and clearance rates are running high – a pressure cooker for high sale prices.
Melbourne’s rising values might have eased off but every week it seems the media reports a surprisingly high auction result in another suburb. Paying too much in this environment can be a trap and this is something Buyer Marketing’s experience and negotiating skills can certainly help you avoid!
Is the rush to regions over?
The surge to the regions over the last 2 years has been spectacular, with values out there still rising. But some analysts predict a gradual reversal, as high vaccination rates and return to workplace policies kick in, pulling commuters back to Melbourne.
Some of Summer’s best deals are still in the CBD
Buyer Marketing has already signaled value opportunities in the CBD, but now the City of Melbourne is offering stamp duty concessions for first home buyers and also a 100% stamp duty exemption for all, on new residential properties that have been on the market for more than 12 months. It’s free money.
Home prices in the CBD dropped 11.6% between 2020 and 2021. With the collapse of the student market and the retreat of Chinese investors, compact one-bedroom studio type apartments are going for between $300,000 and $400,000. Or even $220,000 and $250,000 around Swanston Street. They’re small but a foot in the door and because the market has recently bottomed out, growth prospects are favourable. City agents report current buyers in this market are 40% first home buyers and 60% investors.
Principal Advisor &
Licensed Estate Agent
Enter your details below to download our Essential FREE Property Buyers Guide and learn our 4 steps to success!
1. Search – how to find the ideal property to match your needs
2. Evaluation – what you need to evaluate with your potential purchase
3. Acquisition – secure your property with minimum fuss and for the best price
4. Legal & financial requirements – how to ensure all is in order with the property and sale documentation
Buyer Marketing – Melbourne’s most experienced buyer advocates will not disclose any of your personal information.