Weekly Market Update 25th February 2020
By Advantage Property | 25th Feb 20
Melbourne’s property market continued its solid performance with a 80% clearance rate from 947 reported auctions with a Super Saturday volume of over 1200 auctions scheduled. The market passed another Super Saturday test with flying colours and there is another Super Saturday this weekend with over 1300 auctions scheduled and more chance for buyers.
There continues to be mixed results in the apartment market segment. If an apartment doesn’t have a ‘WOW’ factor and is one of the many modern apartments in the market place without any differentiating features, it is going to struggle. A 2 bedroom, 2 bathroom apartment in Kingsley Street in Elwood’s Golden Mile was in a great location but it is one of many modern apartments with no land component. The property passed in on a vendor bid of $700,000. The reserve was $720,000 and the owners have achieved no capital growth as they purchased the property seven years ago for $722,500. In the last five years Elwood’s median house price has risen considerably by around 35% due to the land component as land appreciates in value.
Though there was a strong result in York Street, Richmond where a modern apartment sold for $627,000, nearly $100,000 over the $530,000 reserve. The difference was that this property had some land value as it had a large entertaining courtyard which had a nice grassed area and entertainer’s deck. They had five bidders compared to no bidders at the Elwood property auction. This demonstrates that it is not all just about location but also about a property’s point of difference and a property’s features.