Buy­ers’ lucky charm

Herald Sun - Property - - MARKET WRAP - WITH PETER FARAGO

ARE you feel­ing lucky? Well this could be the week­end for you.

The No. 8 is con­sid­ered a lucky num­ber in Chi­nese and other Asian cul­tures, a rea­son why Chi­nese buy­ers favour prop­er­ties with a con­nec­tion to the No. 8 — such as the ad­dress or price.

So, with to­day be­ing the eighth day of the eighth month, auc­tion­eers, sellers and buy­ers alike will be hop­ing for some good for­tune.

Mel­bourne’s real es­tate mar­ket has had its own share of good for­tune of late, with the CoreLogic RP Data Home Value In­dex this week show­ing the city out­shone Syd­ney for value growth in the three months to the end of July.

Mel­bourne home val­ues leapt 6.1 per cent — the best quar­terly rate of cap­i­tal gain since last year — to hit a me­dian price of $568,200.

Barry Plant Group chief ex­ec­u­tive Mike McCarthy said the jump oc­curred as higher prices in the in­ner sub­urbs pushed more buy­ers into mid­dle and outer ar­eas.

The price rise also co­in­cided with the Re­serve Bank’s last cut in of­fi­cial in­ter­est rates.

But Mr McCarthy said a lack of stock to sate the de­mand for homes was also a fac­tor.

“What I’m hear­ing across the board now is we need more stock,” he said. “Days on mar­ket are down to about 32 on av­er­age from around close to 40 this time last year.”

Mr McCarthy said there was noth­ing to sug­gest prices had reached their peak, es­pe­cially in mid­dle and outer sub­urbs.

Hodges, San­dring­ham, agent Stephen Wigley, thought $1.5 mil­lion might have been the peak of the mar­ket in Pass­chen­daele St, Hamp­ton, where a four-bed­room home at No. 26 went un­der the ham­mer.

But five buy­ers thought oth­er­wise, tak­ing bid­ding in front of about 100 peo­ple to $1.751 mil­lion.

“We thought it was around the $1.4 mil­lion mark, maybe a bit more,” Mr Wigley said. “It wasn’t your tra­di­tional Hamp­ton home in that it wasn’t a Cal­i­for­nian bun­ga­low or a pe­riod home.”

But the com­bi­na­tion of num­bers 2 and 6 meant the fam­ily home at­tracted plenty of in­ter­est from Asian buy­ers.

In fact, 70 per cent of groups through on in­spec­tion were Asian, he said.

“The chap who bought it was an Asian buyer who saw it on the day. He hadn’t seen it be­fore,” Mr Wigley said.

This fourbed­room house in Hamp­ton sold for $1.75m last week­end.

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