Sales records tum­ble

Herald Sun - Property - - MARKET WRAP - WITH KAMAHL COGDON

LAST week’s record auc­tion spree has re­vealed the depth of buyer de­mand across Mel­bourne.

With more than 1000 homes go­ing un­der the ham­mer, most of them on “lucky” Au­gust 8, mar­ket watch­ers would not have been sur­prised to see the clear­ance rate take a bit of a trim.

In­stead it climbed to a pre­lim­i­nary 78.6 per cent.

Not even the big­gest Au­gust week of auc­tions was a match for the num­ber of buy­ers look­ing to snap up a new home.

WBP Prop­erty Group chief Gre­ville Pabst said nu­mer­ous bid­ders con­tested auc­tions across the metropoli­tan and plenty walked away emp­ty­handed.

“There was a sig­nif­i­cant num­ber of would-be buy­ers who missed out — buy­ers who are cer­tain to re­turn in com­ing weeks,” he said.

Mr Pabst said the sup­ply ver­sus de­mand im­bal­ance meant there was likely to be lit­tle re­lief for buy­ers head­ing into the peak spring selling sea­son.

“This will mean buy­ers face a highly com­pet­i­tive mar­ket­place this spring, par­tic­u­larly for both large and small well-lo­cated houses in Mel­bourne’s in­ner and mid­dle-ring sub­urbs,” he said.

CoreLogic RP Data fig­ures show last week’s 78.6 per cent clear­ance rate from 1057 auc­tions com­pares to 78.2 per cent the pre­vi­ous week when 787 homes went un­der the ham­mer and 69.6 per cent at the same time last year when 774 homes were auc­tioned.

The outer east pro­duced the strong­est suc­cess rate, with 85.6 per cent of auc­tions re­sult­ing in a sale, fol­lowed by the in­ner east where 81.1 per cent of auc­tions were cleared.

Big bud­get buy­ers homed in on Glen Iris. The leafy eastern sub­urb had the three top re­ported sales, led by the fourbed­room house at 8 Wan­deen Rd that sold un­der the ham­mer for $3.06 mil­lion.

Fur­ther south, an art deco house at 146 Oak­leigh Rd, Carnegie, blew away its re­serve price by a whop­ping $270,000 when it sold for $1.47 mil­lion.

Bux­ton, Bentleigh, agent Chris Has­sall said there were too few prop­er­ties on the mar­ket to meet de­mand from buy­ers, send­ing prices soar­ing.

“I have just re­turned from a three-week hol­i­day and I can’t be­lieve what’s go­ing on, it’s just ridicu­lous,” he said.

“The mar­ket has been like it for about two months but there’s been a no­table in­crease even in the short time I was away.”

This fourbed­room house in Carnegie sold at auc­tion for $1.47 mil­lion last week­end, $270,000 above re­serve.

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