25th July 2022 / Jeremy Desmier: Market Update | 23 & 24 July 2022

Auction volumes across the capital cities increased to 1,471 properties scheduled to go under the hammer this weekend. This is the second week in a row that auction volumes have risen with clearance rates remaining relatively steady.

Sadly, we didn't get to enjoy the sunshine that came through on Friday and Sunday, with grey skies and rainy periods dominating on Saturday.

Auctioneer Jeremy Desmier took advantage of one of the spacious living zones at the auction of 208 Dorking Road in Box Hill North, avoiding the rain that had started to fall. The crowd watched on as five bidding parties traded bids in an attempt to secure the beautiful weatherboard home, which eventually sold to the successful bidder for $1,523,000.

In Glen Iris, a large crowd assembled to watch the auction of the charming three-bedroom home at 3 Jesse Street. Offering a comfortable home to move in immediately to, it also offered opportunity for the successful purchaser to renovate at their leisure. Auctioneer Michael Richardson passed the home in on a genuine bid before the property was quickly sold in post-auction negotiations for $1,850,000.

In Ringwood North, the original 1970's style home at 69 Goldsmith Avenue attracted four bidders. In an excellent location, the home sold under the hammer for $1,000,000.

With building and renovating costs soaring, the demand for new homes is flying whilst some buyers are taking a more cautious approach for those properties that need work.

Real Estate Institute of Victoria president Richard Simpson said there was "definitely some anxiety in the market around having to renovate" amid runaway build costs.

"It doesn't surprise me that properties that are unrenovated are struggling a little bit in this environment and stuff that is already fully done up is preferred from people so they can just buy and move in," he said.

"It's a little bit interesting as you don't usually see that, usually people like to renovate and do their own things and they don't want to have to pay stamp duty on someone else's renovation they may not like."

In other property news, median weekly rental prices have surged across the country by 7% compared to June last year, according to the new PropTrack Rental Report.
Cameron Kusher, PropTrack director of economic research and the report's author, said a chronic lack of supply and continued high demand are fuelling the increases.

"With overseas and interstate migration returning now that borders have re-opened, it seems likely that rental conditions will tighten further over the coming months."

For the time being, factors are putting downward pressure on rental supply, which is fuelling the rental crunch. Mr Kusher said more investors are selling up and re-opened borders are seeing many move their properties from long-term to short-term leases, as tourism rebounds.

"The ultimate solution to the tightness of the rental market is more rental properties," he said. "Increased investor purchasing is addressing this, but it will take some time to ease the existing pressure."

Results. It's a Fletchers thing.