80% Auction Clearance Rate – Steady as a Ship…
Melbourne’s auction clearance rate over the weekend remained steady at 80% on 585 auctions reported. However, compared to this same time last year there were 1,120 auctions with an auction clearance rate of 78%. In other words, Melbourne is still under half its normal capacity so the true test will come later once supply increases.
With State Government stamp duty discounts of 50% stamp duty discount on newly built homes valued up to $1m and 25% discount for established properties for up to $1m for the rest of the financial year will most likely encourage more buyers into the Melbourne’s property market which could result in further pressure in prices.
We attended many auctions on behalf of clients’ in Melbourne in the month of November 2020 and ended up achieving being the successful bidder at all auctions we were bidding at. 31 Sussex Road, Caulfield South we bought for $3.1M under the ‘hammer at auction’ on behalf of a family we were representing. This was amazing buying value considering this home comprised, swimming pool and was situated opposite Princes Park.
The housing recovery as they say, starts at the top or higher ranges. And it is quite evident this is currently being played out as we speak. The other good news is that over the past month, it appears that a number of property investors are now becoming active once again. This is extremely positive news.
Finally, given there are many auctions being held between now and the remainder of 2020, we should have an indication of the ‘state of play’ for the Melbourne property market during the next few weeks. But, everything at this stage is looking quite promising. There’s also very good reason to start feeling optimistic in Melbourne with further covid-19 restrictions to be eased in next couple of weeks, plus a number of Covid-19 vaccines earmarked for release in Australia early next year.