17th May 2021 / Rob Fletcher: Market Update | 15 & 16 May

A cold snap descended over much of the country over the weekend, and Melbourne was not immune as wintery conditions set in. Despite the chilly weather, auctions were still quite well attended, and the Fletchers Group achieved a solid clearance rate of 81 per cent.

In property news, the Victorian government announced that those buying a home for more than $2 million across the state would pay more stamp duty - with a premium duty rate of 6.5 per cent being introduced. The rates will jump from the usual 5.5 per cent on 1 July 2021.

Further tax hikes will also affect investors, with land tax to rise by 0.25 percentage points for land holdings worth between $1.8 million and $3 million and 0.3 percentage points for holdings above $3 million from the start of 2022.

The Real Estate Institute of Victoria (REIV) has hit out against the changes, saying they would harm the industry and buyers and investors alike. REIV President, Leah Calnan said, "property already accounts for more than 40 per cent of government revenue...there is not much more capacity [for] any one sector to absorb further tax burden".

Despite the news, a Super Saturday was still in play over the weekend, with over 1,000 auctions called. Amongst the sales, Director & Auctioneer, Robert Sheahan fielded bids from four parties at the auction of 2 Simon Street in Blackburn North. Boasting a deluxe renovation and a family-friendly configuration, it's no surprise! In Mont Albert North, five bidders participated in the auction of 6 Edgoose Avenue, which sold under the hammer.

Success. It's a Fletchers thing.