27th August 2024 / Jeremy Desmier: Market Update | 23 & 24 August 2024

Auction activity continues to heat up as we close in on the Spring selling season, with over 2,000 homes going under the hammer across the combined capitals. Melbourne hosted 889 auctions, with a preliminary clearance rate of 68.7%.

Over the weekend, Partner & Auctioneer Aaron McDonald fielded bids from two parties seeking to secure the custom-designed masterpiece at 38A Osborne Road in North Warrandyte. On approximately 1 acre, the property sold under the hammer for $1,805,000.

In Glen Iris, five bidders competed to secure the single storey home at 1/13 Alfred Road. Partner & Auctioneer Michael Rosano knocked the property down to the successful bidder at $1,600,000.

The successful buyers were thrilled to secure the superb single level unit at 4/17 Mount Pleasant Road in Nunawading, which sold under the hammer for $700,000 exactly!

The Domain Group reports that home owners are doublinbg - and in some cases, tripling - their money when selling property in some of Victoria's most sought-after destinations.

Some of the suburbs which made the list of top 20 Victorian suburbs where home sellers made the largest relative profits include Wonga Park (212.1%), Middle Park (196.8%, Kew (189.7%, Sorrento (183.6%), Point Lonsdale (181.4%) and Malvern 153.3%).

Demographer Mark McCrindle said well-positioned homes in regional and coastal areas recorded big-value increases over the past few years because pricing in these locations started out lower.

"Many of the lower prices were pre-pandemic and over the last few years, as people have decoupled work from location and have been able to work from home or work remotely, its really opened up the regions, so that's led to significant price increases in some of those regional lifestyle areas."

McCrindle said low turnover rates in popular urban areas had also contributed to rising prices. "The average renter stays less than two years, but Australia has one of the lowest turnover rates and the longest tenure rates of homes that people own, either with a mortgage or owned outright," he said.

"If someone has a good home in a well-positioned area in one of our large capitals and they're prepared to hold it for a reasonable time...that's where we see those increases," he said.

We're looking forward to a busy first weekend of Spring coming up - if we can assist you with any of your real estate needs, please give us a call.