Auction Report Melbourne - Saturday the 10th of July 2010

Monday, July 13, 2010 at 10:30am

There are property’s being passed in where the vendor wants too much or the qualities of the house are simply not ticking enough boxes. We saw some homes on Saturday that could not generate a bid and then some exceeded our expectations.

Its truly a mixed bag of results and the clearance rates look likely to hover in the mid 60’s until Spring.

Results
Each week we rotate a selection of 4 Auction sales across Melbourne suburbs. Typically we like to sample something from the north, east, west and south.

I am only providing a snippet of what we are seeing happen in the market place as a buyer’s advocate of melbourne real estate. If you want to discuss anything in more detail please message me.

2/13 Angus Avenue, Altona North
Advertised $500,000 - $550,000
Sold $625,000
http://www.realestate.com.au/property-townhouse-vic-altona+north-106608527

2/528 Bluff Road, Hampton
Advertised $690,000 - $760,000
Sold $800,000
http://www.realestate.com.au/property-townhouse-vic-hampton-106616642

86 Newton Street, Kensington
Advertised $630,000 - $690,000
Sold $706,000
http://www.realestate.com.au/property-townhouse-vic-kensington-106664250

1 Schutt Street, Newport
Advertised $600,000 - $650,000
Sold $615,000
http://www.realestate.com.au/property-house-vic-newport-106559707

Additional Comment:
We watched one Auction in a very nice street of Coburg for a 3 bedroom brick terrace house that could not generate a bid it was passed in at $620,000 a vendor bid. The agents did not declare a reserve and it seems evident that the seller has a reserve that is too high. It did have its short comings such as awkward floor plan, rough condition and overly “personalised” colour schemes off street car access was available but required creating access in the current fence.

Then in Gold Street, Brunswick we saw a house that had modest interest during the campaign grab some last minute competition and sell for $800,000 we thought more likely under $750,000. Our inside word was that agents were very nervous about getting a bid. The buyers are keeping the cards very close to their chest and still competing if they have to.

I also wanted to share, that I know a bitterly disappointed property investor friend who witnessed a 1 bedroom apartment in St Kilda expecting a price in the low $400,000’s actually sell for $451,000, further highlighting that there are strong results still being achieved in blue chip locales and particularly in the price band of first home buyer and investor interest.

REIV Update
There were 528 auctions reported this weekend with a total of 361 selling and 167 being passed in, 96 of those on a vendors bid. The clearance rate from this weekend’s auctions is 68 per cent. This weekend last year saw 293 auctions reported and a clearance rate of 85%. Next weekend the REIV expects 590 auctions.
Enzo Raimondo
CEO, REIV