24th May 2021 / Rob Fletcher: Market Update | 22 & 23 May

We enjoyed a much more pleasant weekend weather-wise, on a busy auction Saturday which yielded some mixed results. The REIV recorded a clearance rate of 81 per cent, with most properties that sold under the hammer attracting 2-3 bidders each.

Partner & Auctioneer, Steven Zervas fielded bids from three parties at the auction of 28 Sartori Street in Burwood East, which sold under the hammer for $2,231,000. The stunning five bedroom home sold well over our vendor's expectations and achieved a record price for a residential home in the suburb.

In Balwyn North, five bidders competed to secure the single level unit at 2/17 Corhampton Road. Director & Auctioneer, Jeremy Desmier, declared the well-located property sold at $1,135,000.

The Victorian government's planned stamp duty and land tax increases in the 2021-22 state budget continues to draw debate, with the REIV determined to work with the government, the opposition and cross-bench to see positive change. REIV CEO, Gil King, said that "this ill-considered announcement shows a fundamental misunderstanding of the real estate market, and the contribution it makes to the economy including its influence on Victoria's economic recovery post-COVID".

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. On the flipside, an economist from the Grattan Institute has suggested that the property tax hikes could actually boost economic growth and put an end to development-related corruption. Mr Brendan Coates said, "Mum and Dad investors made up most of the landlords across the country and owned properties worth way less than $1.8 million, so not many investors would be affected by the new land tax".

Success. It's a Fletchers thing.