Melbourne’s auction market is running hot, with buyers striking early and clearance rates climbing before the AFL Grand Final pause. Picture: NewsWire / Andrew Henshaw
Melbourne’s auction market is running hot, with a clearance rate near 75 per cent and buyers striking early before next week’s AFL Grand Final auction pause.
PropTrack recorded a preliminary clearance rate of 74.9 per cent from 668 reported results.
Big-ticket sales in Lorne, Doncaster East and Northcote led the weekend, while agents reported stronger competition and more homes selling ahead of schedule.
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The standout was 135 Smith St, Lorne[4], which sold for $4.2m.
Other top results included 91 Beverley St, Doncaster East[5] ($3.25m), 74 Andrew St, Northcote[6] ($3.029m), 3 Folkestone Cres, Beaumaris[7] ($2.62m) and 4 Park Lane, Mount Waverley[8] ($2.49m).
Ray White Bayside Group director Kevin Chokshi said the psychology of the market had flipped.
“Spring is going to be big. Downsizers, upgraders and first-home buyers are all active,” Mr Chokshi said.
“Presentation is everything — buyers want a finished product. It’s basically Uber Eats thinking applied to property: fast, easy and ready to go.”
Ray White’s Kevin Chokshi says buyers want homes styled and ready to go “fast, easy and ready to go.”
The clifftop home at 135 Smith St, Lorne sold for $4.2m, and its views can’t be replicated under today’s rules.
Mr Chokshi said urgency was reshaping buyer behaviour.
“Just last week we sold a home before its grand final weekend auction — something that almost never used to happen,” he said.
“A year ago, people would wait and hope for a bargain.
“Now they’re moving early because they fear stronger competition under the hammer.”
This Doncaster East home at 91 Beverley St sold under the hammer for $3.25m.
The expanded First Home Guarantee scheme launches October 1, allowing entry with a 5 per cent deposit and no income cap. Picture: Steve Pohlner
That pressure is set to intensify after October 1, when the federal government expands its First Home Guarantee scheme.
The changes will allow first-home buyers to enter the market with a 5 per cent deposit and no income caps.
Frame Finance director Imogen Alexy said investors were already adjusting.
“Many are targeting the $700,000 to $950,000 bracket before first-home buyers flood in and create extra competition,” Ms Alexy said.
“There’s also a renewed sense of confidence.
“Melbourne passed its trough some time ago, and while growth is gradual, the trend is clearly upward.”
3 Folkestone Cres, Beaumaris was another highlight, selling for $2.62m.
Finance broker Imogen Alexy says investors are moving before first-home buyers flood the market in October.
Over in Lorne on the Bellarine Peninsula, Barnett Real Estate director Jason Barnett sold the $4.2m clifftop home to a young Melbourne family.
“The views were the selling point, you couldn’t rebuild it under today’s planning rules,” Mr Barnett said.
“Confidence has really come back. Buyers are prepared to compete hard for the right property.”
4 Park Lane, Mount Waverley changed hands for $2.49m as spring auction momentum builds.
Jellis Craig Richmond director Jodie McCarthy said most buyers had accepted higher rates.
“They’ve spoken with their banks, they know what they can borrow, and they’re ready to act,” Ms McCarthy said.
With 1212 auctions scheduled this week and just 208 next week, momentum is tipped to roar back in October as more stock hits the market and policy changes kick in.
Sign up to the Herald Sun Weekly Real Estate Update. Click here[9] to get the latest Victorian property market news delivered direct to your inbox.
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david.bonaddio@news.com.au
References
- ^ Cheltenham sale sparks coast escape (www.heraldsun.com.au)
- ^ Mad Max penthouse hits Melb market (www.heraldsun.com.au)
- ^ Melb auctions roar before AFL grand final (www.heraldsun.com.au)
- ^ 135 Smith St, Lorne (www.realestate.com.au)
- ^ 91 Beverley St, Doncaster East (www.realestate.com.au)
- ^ 74 Andrew St, Northcote (www.realestate.com.au)
- ^ 3 Folkestone Cres, Beaumaris (www.realestate.com.au)
- ^ 4 Park Lane, Mount Waverley (www.realestate.com.au)
- ^ www.newsletters.news.com.au (www.newsletters.news.com.au)
- ^ Revealed: Melb’s forever suburbs (www.heraldsun.com.au)
- ^ $80m mega-mansion opportunity in Toorak (www.heraldsun.com.au)
- ^ Family to farewell Brighton shopfronts after 90 years (www.heraldsun.com.au)