Mid Spring Monday Morning Musing

As always, the following in no way constitutes financial advice and no warranty is offered as to its accuracy or validity.  The reader is to make their own inquiries prior to making any decisions.

Saturday 13th October has been lucky for some, with some buyers now having more choices than a few weeks ago.  The published clearance rates (PCR) for the weekend were 53%.

With 353 reported as sold, 313 passed in, and 56 either withdrawn or postponed.  Of those reported, 463 were houses (50% sold), 186apartments (61% sold) and 16 being registered as land sales.  Looking deeper into the numbers over the weekend there were 985 Auctions scheduled with results for 666 or 67% reported (4% less than the 6th October). Without counting any unreported results as sold, that would show a clearance rate of 35%.  This is 5% lower than the 6th October.

Overall in Port Phillip the numbers of properties available is on par with this time last year if not slightly more; Port Melbourne has the most choices for Buyers with 65 established properties to choose from with houses/townhouses and apartments being about a 30/70 mix, Albert Park has 16 properties available, 11 in Middle Park, and the hidden gem of St Kilda West has 16, of which only 3 are houses.

In the news cycle, I am still seeing journalists run a plethora of negative headlines.  However, many of the developers and experienced buyers I am speaking with, the people who actually trade in property, are looking to come back into the market and are back on the hunt.  On Saturday, 15 Nott Street in Port Melbourne SOLD on $3,340,000 ($21,130/sqm) at Auction with 3 strong bidders fighting it out.  Called on the market at $3,100,000 the property is a 158sqm site with potential to put 6 storeys on it.   The reported history of this property is as follows;

13th October 2018 – $3,340,000

01st July 2015 – $1,020,000

14th June 2007 – $575,000

17th August 2002 – $753,000

15th October 1999 – $300,000

08th October 1997 – $220,000

Liquidity is still the underlying factor in the market, with the qualification of a buyer’s ability to fund their purchases being at the top of mind for any experienced Agent.   Off market sales will also become much more common in the current climate.  This week we sold 2 Beacon Vista, Port Melbourne off market to private buyers, one of many who are in our database looking for the perfect home.

2 Beacon Vista, Port Melbourne

Local Roundups;

Heading into last Saturday, the number of open for inspections stayed consistent with Port Phillip Agents opening 109 properties. Boroondara and Wyndham still sat around 200 (maximum displayable) in each zone and the Hobsons Bay areas of Newport, Seaholme and Williamstown opened 84.

The reported outcomes for the areas are as follows;

  • Albert Park – Middle Park – Port Melbourne – St Kilda West – South Melbourne; 44% PCR (-10%)
  • Southbank – Melbourne; 50% PCR (-17%)
  • Werribee – Werribee South – Wyndham Vale – Hoppers Crossing; 67% PCR (+24%)
  • Glen Iris – Armadale – Hawthorn – Hawthorn East; 59% PCR (-5%)
  • Seaholme – Williamstown – Newport; 12% PCR (-67%)

In the week ahead, The Reserve Bank of Australia will release its minutes from the October meeting where they have decided to leave rates on hold for 26 straight months and according to the latest Westpac Banking Corp weekly economic report, it’s economics team has forecast the cash rate should remain at 1.5% until at least to December 2020.

If you have any property needs or questions, please feel free to contact me for a confidential chat.  Additionally, if you would like to be updated once a blog is up, please feel free to subscribe with your email on the right hand side of this page.  No spam, only bog posts.

Jonathon Bird

Licensed Estate Agent

0419 536 905

jbird@rtedgar.com.au