Melbourne Property News Monthly Wrap – March 2018

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Melbourne Property News - Buyer Marketing

Who’s buying homes in Melbourne in March?

In the first 2 weekends of March, more than 1446 auctions were recorded by the Real Estate Institute of Victoria (REIV). 813 of those homes were bought. 461 properties were passed in with 223 of those on a vendor bid. The clearance rate so far for March has averaged 68%.

Clearance rates have eased back by mid-March from February’s 71.5%, but on par with December 2017’s 68%.

In a time of low supply and high demand Melbourne sellers have justifiably high expectations. But more buyers are holding back on auction day. Using Bayside as a snapshot, four Hampton auctions attended by BuyerMarketing on March’s first weekend produced only one sale, with three homes being passed in. The passed in homes were 33 David St. ($1,825,000), 9 Fewster St. ($1,650,000), and 28a Kendall St. ($700,000). The sale was for 1a Rayne Park Rd. Hampton, a two storey contemporary house, for $2,100,000. Which was on the knocker for Hampton’s median house price of $2,020,000.

A large block with a knockdown house near Ricketts Point in nearby Beaumaris soared $750,000 over reserve on March’s first weekend. In this case the ‘build-your-own dream home’ potential brought the bidders out. The 1111-sqm property at 2 Point Ave. sold for $3.72 million. This amounted to $3300 per square meter – in line assumed land values for Hampton.

The inner-Melbourne market is also patchy at present for mid-range homes, with bidders holding back.

At the top of the Bay near Albert Park a single-front Victorian at 46 Glover St. South Melbourne passed in at $1.26 million. Although having appeal to both downsizers and upsizers, the auction failed. This property would have attracted much keener bidding in 2017 according to the Agents (Greg Hocking Holdsworth).

Block size is critical when buying in suburbs like South Melbourne and Albert Park which have the city’s highest values per square meter. The failed bidder was willing to pay as much as $9650 per sqm. only. The average asking price in other parts of South Melbourne is running at over 11,000 per square meter. Albert Park can vary between $12,000-$15,000. But the Glover Street location being very close to the border of Port Melbourne (@ $9000 per sqm) meant potential buyers would have assessed the home’s land value at Port levels. The right Postcode adds value, but it’s still trumped by actual location!

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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