29th August 2022 / Jeremy Desmier: Market Update | 27 & 28 August 2022

With the sun shining down, it certainly felt more like Spring weather in Melbourne over the weekend!

Despite auction volumes increasing by 13.5% to 1,651 schedule auctions across the combined capitals, it did seem like buyers were much more willing to put their hand up to bid for properties they were interested in. The Fletchers Group was thrilled to achieve a strong success rate of 77% for our clients.

In Ashburton, three bidders sought to secure the beautiful and flexible family home at 73 Nicholas Street. In a wonderful location within walking distance to an abundance of parks, reserves and playgrounds, the home had already been transformed to perfection and was ready for its new owners to move in. The property was knocked down to the successful bidders by Auctioneer Andrew Mackintosh, for $2,520,000.

In a quiet crescent in Forest Hill, it took just two bidders to find the property at number 85 Barter Crescent its new owners. Immaculately presented, the home was sold by Auctioneer Jee Chin for $1,185,000.

The luxurious, four-bedroom home at 17 Frederick Street in Bulleen immediately attracted a knock-out bid, well and truly over the vendor's reserve price, to start the auction. A few bids were exchanged between three parties until the original bidder was rewarded for her strong bidding with the property knocked down to her by Auctioneer Steven Zervas, at $2,150,000. Steven commented that there was "really good activity this weekend with great turnouts not only at our auctions, but also at inspections…which is great to see!"

The REA Group reports that there are significant market factors shaping us as potential property price drivers in parts of Australia, which experts say may see them dodge cooling trends.

Increased immigration, the return of international students, continuing interstate migration, and a first-home buyer preference for apartments are tipped to lead some suburbs to outperform others in the next few years.

Whilst the past few years have seen a sharp decline in immigration due to the COVID border closures and exodus of international students, the new Labor government has announced it's actively seeking to raise the level of skilled immigration, with a forecast target of between 180,000 to 200,000 new arrivals per year.

Martin North of Digital Finance Analytics noted that, "the majority of people coming from overseas are looking at big houses, substantial houses with lots of land."

As well as an increase in the intake of skilled migrants, the opening of borders has seen a surge in interest from international university students, with 10,000 student visa applications being lodged each week since June, according to the Home Affairs Department. While the incoming students are likely to put more pressure on already-tight rental markets in and around capital city campuses, more affluent families may take the opportunity to invest in local real estate.

We look forward to the first auction weekend of the Spring selling season, and to assisting you if you're in the market to sell or buy.

Results. It's a Fletchers thing.