Weekly Market Update - 18th July 2019
By Advantage Property | 18th Jul 19
Why buyers are experiencing FOMO
There has been a definite shift in the dynamics of Melbourne’s property market since the election as buyers are experiencing the FOMO (Fear of Missing Out!) phenomenon again. The Melbourne clearance rate was 76% from 280 from 280 auctions and this was the highest clearance rate rate for around a year.
We would never have seen the result of an unrenovated one bedroom apartment sell so strongly in East Melbourne a year ago. The Palmer Street apartment saw 5 bidders fighting it out and pushing the price to a whopping $942,000! Earlier this year, a fully renovated apartment in the same block sold for $730,000 showing how much the market has changed since the election results and two interest rate cuts. The State Trustees reserve of $650,000 was smashed by $292,000 with a young male First Home Buyer beating other First Home Buyers and investors to the keys.
The owner of a studio apartment in Acland Street St Kilda must be wondering why they purchased the property for $457,500 in February 2013. In support of the patchiness of the apartment market’s performance in the last decade, they sold for a big loss after selling for only $361,000 on the weekend.