Weekly Market Update 26th November 2018
By Advantage Property | 26th Nov 18
Your weekly Property update by award winning Buyer’s Agent Frank Valentic
Melbourne’s property continues to provide more opportunities for buyers with a 48% clearance rate from 770 auctions. There are now only a few auction weekends before the market shuts down for the Christmas festive season and really doesn't start up for another two months, until around mid February when the auctions will restart.
There is much better buying now for buyers than it was 12 months ago. We saw that with a couple of properties in Thornbury in Darebin Road and through our Vendor Advocacy service in Gillies Street that sold about $100,000 less than what we would have seen about 12 months ago in Thornbury. We have seen almost a 10% reduction and now obviously better buying opportunities for buyers. We also saw that with a house in Alexandra Street, South Yarra which passed in and then sold afterwards for $1,695,000 and this property was bought two years ago for $1,780,000.
We had some solid growth for 12 months and then a decrease close to 10% in the last 12 months and it actually owed the vendor including stamp duty and agent’s fees around $1.9 million and they have ended up selling it for nearly $200,000 less. Properties are about a long-term game plan and for whatever reason, the owner of Alexandra Street went to the market in two years and lost a substantial amount of money.
Though we are still seeing some runaway results with a buyer paying nearly a million dollars for a Portsea Beach Box and seven parties interested in securing a unique piece of real estate. It’s all about appeal and the demand and supply equation and there is definitely not a high supply of beach boxes in Portsea. We also saw a record result recently in St Albans where a house on only 590 sqm of land in Alfrieda Street sold for a whopping $2,520,000, setting a new suburb record. It was over $4,000 per square metre for the land value. This was a massive result. Again this property had a “WOW” factor as it was in the Residential Growth Zone which allowed for multi level development in the future.