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Melbourne property market feels spring air

The auction clearance rate firmed slightly yesterday after a swag of Sunday auctions, including the sale of a townhouse on Port Melbourne’s blustery Boulevard.
Nanjing Night Net

Hocking Stuart director David Wood said the triple-level townhouse at 245 The Boulevard sold for $1.55 million after auction.

”It’s on about 150 square metres and that comes out to about $10,000 a square metre, which we haven’t seen in Port Melbourne for a long while,” Mr Wood said.

The Real Estate Institute of Victoria reported a clearance rate of 59 per cent from 384 auctions over the weekend, including 17 that sold yesterday and 34 which sold before their auctions.

Properties selling before auction indicate a competitive market and the suggestion of rising values. They have been rare in this market where some properties languish on the market for weeks and months after their failed auctions.

Marshall White director Justin Long sold 8 Royal Crescent in Armadale for more than $2.6 million last weekend, a week before Saturday’s scheduled auction.

”It was a competitive pre-auction situation. One buyer put an offer on the table that the vendors thought was pretty good. Someone else offered more. We ended up having an auction at the table,” Mr Long said.

”On the weekend, we sold eight out of 12. We were pretty happy. The ones that were passed in we’ve had offers for. We’ve got buyers. There’s just a little bit of a shortfall.”

The situation has improved since 20 Royal Crescent was passed in a few months ago. It was passed in at auction, without a single bid, for $2.5 million on May 6.

For sale privately at $3.19 million, it received no bites until after the $3.4 million auction of 69 Rose Street on June 4, which left a trail of underbidders in its wake.

Mr Long said three offers then came in for 20 Royal Crescent, which finally sold for $2.95 million.

In Kew, the home that once belonged to Nobel prize-winning scientist Sir Frank Macfarlane Burnet is likely to be demolished after selling at auction for $2.2 million on Saturday.

Jellis Craig director Alastair Craig said the property was bought for its land alone and attracted a large crowd and three bidders.

”It’s only 600 square metres but it’s in a very good part of Kew, in the Sackville estate. It set a land value record when it last sold 14 years ago,” Mr Craig said.

”It sold on the weekend for about $3666 a square metre, which could be a new record: I’m not aware of any land prices like that in Kew.”

This story Administrator ready to work first appeared on Nanjing Night Net.