Melbourne Property News Monthly Wrap – June 2018

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Melbourne Property News - Buyer Marketing

Clearance rates hit six year low.

Over the first 2 weekends of June more than 1,167 auctions were recorded by the Real Estate Institute of Victoria (REIV). 541 homes were sold at auction, with 400 homes being passed in, 210 of those on a vendor bid. The clearance rate so far in June has averaged 60.5%, down on May’s average of 64.5%.

The Queen’s Birthday weekend meant a drop in auction numbers to about 25% from the week before. Clearance rates have continued to plummet in June hitting a six year low (CoreLogic). Generally, in a classic about face, we’re seeing investors continue to retreat from the market and first home buyers dive in – taking up 17% of all owner-occupier mortgages.

The retreat by investors is contributing to a lowering of home values. One flow-on from this is that consumer spending can also slow, because households feel less well off. Some economists have noted this could even trigger an economic downturn.

Buyer Marketing attended three auctions in Port Melbourne on June’s first weekend, seeing two homes sell and one pass in. A contemporary home at 5 Bath Place, Port Melbourne sold for $1.41 million with 3 bidders vying. 1/97 Cruikshank Street Port Melbourne had 2 bidders but passed in at $1.16 million. 502/65 Beach Street, Port Melbourne sold for $1.325 million, with 4 bidders.

As we saw, homes are still selling well in some locales. New data (realestate.com.au) has identified Kallista in the Dandenong Ranges to be Australia’s fastest selling suburb. It takes an average of 10 days to sell there, for a median of $704,500. Australia’s second top fastest seller is Millgrove in the Yarra Valley, where homes sell in just 12 days. The Millgrove median of $365,000 would help those quick sales along! Melbourne’s leafy hill towns always look a treat and are selling at high speed at the moment.

And parts of regional Victoria are also having their time in the sun. Over the 12 months to March, median values in Geelong increased by 15.8% for houses and 12.2% for units. In the Latrobe-Gippsland region, house values have increased by 5.9%.

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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