Demand, not shortage, fuels year's strongest result
The Sunday Age
Sunday June 21, 2009
MELBOURNE'S auction market delivered another stunning result this week, with the clearance rate soaring to a new high for the year and posting one of the best performances on record.The Real Estate Institute of Victoria says 86 per cent of the 504 properties up for auction were sold, up two percentage points on the previous high, which was hit last Saturday. The results of another 22 scheduled auctions were unreported.Historically, it matched the second-highest clearance rate achieved for a Saturday in the past seven years - the highest was 89 per cent in late July, 2007."This is truly an exceptional result," said Enzo Raimondo, chief executive of the REIV. "It shows that demand is continuing to increase in strength. It's not something that can any longer be put down to a lack of stock."Paul Nugent, director of Wakelin Property Advisory, said comparisons with the 2007 boom were becoming increasing appropriate given the number of bidders, pace of bidding and the sale prices being achieved at many auctions."Vendors' expectations are well and truly being met and in many cases exceeded," Mr Nugent said.Nowhere was this better demonstrated yesterday than at the auction of 45 Taparoo Road, Templestowe, which sold at 59 per cent - or $560,000 - above its reserve. The four-bedroom house received an opening bid that was already $65,000 above its $950,000 reserve, with seven bidders eventually pushing the sale price to $1.51 million. Barry Plant had quoted the property at more than $850,000.Eight bidders fought over the three-bedroom weatherboard house at 17 Hirst Street, Blackburn, which Ray White sold for $682,000, or $102,000 more than its reserve.A first home buyer fought off two other parties to take the one-bedroom unit at 4/35 Princess Street, Seddon, for $230,000. Jas H Stephens opened at $170,000 and it took 26 bids to pass the $200,000 reserve and make the sale.A three-bedroom, ground-floor unit at 1/178-180 Auburn Road, Hawthorn, sold for $615,000, which was 23 per cent above its reserve. Jellis Craig said seven bidders competed for the property.It took three vendor bids to prod two bidders into action at 324 Bellair Street, Kensington: a single-fronted Victorian terrace that started off slowly but ended up selling for $710,000. The reserve was $680,000.Even passing in after just one genuine bid didn't get in the way of a solid result for 9/45-47 Nelson Street in St Kilda East. Besser & Co opened the two-bedroom apartment at $450,000, passed it in for $10,000 higher, but negotiated a sale at $540,000. The advertised price was $470,000 to $520,000.The highest price result reported to The Sunday Age yesterday was for 10 Murphy Street in Brighton, a modern five-bedroom house owned by Hocking Stuart director Scott McElroy, which sold for $3.5 million.The property, which Hocking Stuart quoted at $3.15 million plus, was declared on the market at $3.4 million.Elsewhere in Brighton, Buxton sold the four-bedroom villa at 2 Lorac Avenue for $3,475,000 after three bidders pushed it well above the quoted price of $3.1 million-plus.There are 487 auctions scheduled for next weekend.Call Market Wrap with your auction results, tips and comments on 9604 1188 between 3pm and 6pm on Saturday.
© 2009 The Sunday Age
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