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Domain Property Advocates

Weekly Auction & Sales Results, Market Overview

Tuesday, August 17th, 2010

Weekly Auction & Sales Results, Market Overview

Saturday 14th & Sunday 15th August 2010

The clearance rate for this weekends auctions was 68 per cent, a small increase from last weekend but largely in line with results this winter. Since the start of winter the clearance rate has been 70 per cent or higher twice, a remarkable contrast to summer and autumn when it was never lower than 73 per cent and frequently in the 80’s.

There was a total of 535 auctions reported this weekend of which 364 sold and 171 were passed in, of those 94 were passed in on a vendors bid.

This weekend last year saw 504 auctions held and a clearance rate of
85 per cent; interestingly this weekend is almost a repeat of 2008 when there was 465 auctions and a clearance rate of 65 per cent.

Auction listings drop next weekend to just over 300 due to the Federal Election.

Enzo Raimondo
CEO REIV



TOTAL AUCTIONS

This week: 535
Last Weekend: 533
This time last year: 504

S Sold at Auction: 313
SB Sold before Auction: 48
SA Sold after Auction: 3

Passed in: 171
Passed in on vendor’s bid: 97

Clearance rate: 68%

Postponed: 2
Withdrawn: 3
Auctions with no result: 69

PS Private Sales: 543

Total Volume (Auctions): $257.94mil
Total Volume (Private Sales): $254.74mil

Total Auctions Houses: 351
Clearance Rate: 69%
Median Price: $720,000
Total Value: $185,808,600

Total Auctions Flats/Apartments: 172
Clearance Rate: 67%
Median Price: $511,000
Total Value: $65,743,000

Total Auctions Vacant Land: 11
Clearance Rate: 64%
Median Price: $460,000
Total Value: $4,376,000

House Sales in Detail

TOP 5 HOUSES

1. 5 Callantina Road, Hawthorn $3,330,000
2. 12 Springfield Avenue, Toorak $2,485,000
3. 8 Pine Grove, Malvern $2,155,000
4. 19 Chatfield Avenue, Balwyn $2,100,000
5. 1447 Burke Road, Kew East $1,902,000

TOP 5 BARGAIN HOUSES

1. 104 Melbourne Road, Norlane $247,000
2. 4 Armoy Close, Cranbourne $271,000
3. 26 Norval Crest, Coolaroo $291,000
4. 18 Irvine Street, Deer Park $300,000
5. 20 Irvine Street, Deer Park $300,000

Flat/Apartment Sales in Detail

TOP 5 APARTMENTS

1. 72/1 Albert Road, Melbourne $1,500,000
2. 97 Mitford Street, Elwood $1,425,000
3. 4A Clarendon Street, Armadale $1,325,000
4. 3/72 Glyndon Road, Camberwell $1,200,000
5. 14 Edina Close, Port Melbourne $1,200,000

TOP 5 BARGAIN APARTMENTS

1. 33/115-119 Kororoit Creek Road, Williamstown $250,000
2. 1/245 Hotham Street, Ripponlea $322,500
3. 9/14 Eldridge Street, Footscray $326,000
4. 23 Loxton Terrace, Epping $337,000
5. 1/33 Gordon Street, Footscray $340,000

Weekly Auction & Sales Results, Market Overview

Thursday, August 12th, 2010

Weekly Auction & Sales Results, Market Overview

Sunday August 8th 2010

This weekend has seen clearance rates remain in line with the performance of the market throughout July suggesting that little will change until after the Federal Election when stock levels will increase. Unless buyer activity increases buyers will be presented with conditions that are more favourable than they have been over the past few months.

The clearance rate this weekend is 67 percent, from a total of 496 reported auctions.

There was a total of 331 homes sold and 165 passed in, 106 of those on a vendors bid.

This weekend last year saw 424 auctions and a clearance rate of 85 per cent achieved.

The REIV expects around 580 auctions next weekend and then a drop to 320 on the weekend of the Federal Election.

Enzo Raimondo

CEO REIV

 

TOTAL AUCTIONS

This week: 496

Last Weekend: 597

This time last year: 424

S Sold at Auction: 273

SB Sold before Auction: 57

SA Sold after Auction: 1

Passed in: 165

Passed in on vendor’s bid: 106

Clearance rate: 67%

Postponed: 2

Withdrawn: 3

Auctions with no result: 51

PS Private Sales: 534

Total Volume (Auctions): $231.25mil

Total Volume (Private Sales): $243.82mil

Total Auctions Houses: 311

Clearance Rate: 65%

Median Price: $700,000

Total Value: $160,093,820

Total Auctions Flats/Apartments: 175

Clearance Rate: 70%

Median Price: $529,750

Total Value: $67,923,500

Total Auctions Vacant Land: 10

Clearance Rate: 80%

Median Price: $388,500

Total Value: $3,233,000

 

House Sales in Detail

TOP 5 HOUSES

1. 9 Glendenning Rise, Templestowe $2,120,000

2. 12 Erindale Avenue, Elsternwick $1,950,000

3. 46 Winmalee Road, Balwyn $1,860,000

4. 10 Tovell Street, Brighton $1,850,000

5. 6-8 The Boulevard, Malvern East $1,530,000

TOP 5 BARGAIN HOUSES

1. 20 Cobham Court, Corio $240,000

2. 44 Seventh Avenue, Rosebud $335,000

3. 29 Pommel Crescent, Epping $335,000

4. 64 Almurta Avenue, Coolaroo $337,000

5. 19 Bright Avenue, Epping $360,000

Flat/Apartment Sales in Detail

TOP 5 APARTMENTS

1. 6/6 Stanley Street, Brighton $1,460,000

2. 46 Fletcher Street, Essendon $1,430,000

3. 14 Holzer Street, Sandringham $1,090,000

4. 38A St Andrews Street, Brighton $1,065,000

5. 27 Khartoum Street, Caulfield North $1,055,000

TOP 5 BARGAIN APARTMENTS

1. 6/95 Summerhill Road, Footscray $240,000

2. 22/709 Barkly Street, West Footscray $242,000

3. 4/26 Beaumont Parade, West Footscray $281,000

4. 2/7 Waltham Street, Flemington $285,000

5. 2/4 Edward Street, Seddon $297,000

Negative gearing here to stay

Thursday, August 12th, 2010

Wednesday, 11 August 2010 

 By: Belinda Luc

The federal government and the federal opposition party have ruled out the prospect of abolishing negative gearing.

At a debate held at the National Press Club in Canberra yesterday, both parties said they would not consider abolishing the investment strategy.

Real Estate Institute of Australia (REIA) president David Airey welcomed the government’s unanimous stance.

“This is fantastic news for renters, affordable housing and real estate investors,” Mr Airey said.

Mr Airey added that negative gearing for the purpose of property investment was necessary as it addressed the supply of rental accommodation, which benefited the overall industry.

“The Hawke Government abolished negative gearing for property in 1985 only to have it reinstated in 1987,” he said.

“During that period rents increased by 57.5 per cent in Sydney, by 38.2 per cent in Perth and by 32.0 per cent in Brisbane.

“At the same time building approvals fell by 13.8 per cent,” he said.

According to Mr Airey, when negative gearing was reinstated, the government said that any tax advantages conferred by negative gearing were countered by the CGT regime when capital gains were realised.

“To amend the current negative gearing provisions for housing as some critics have suggested would be treating real estate differently to other asset classes and create a resource misallocation,” he said.

Need advice on buying an investment property? Contact buyers advocate Warwick Brookes at Domain Property Advocates on 9853 5599.

REIV - June Quarter Median Prices

Thursday, July 22nd, 2010

The REIV has released the June quarter median prices which reveal that the median price of a house in Melbourne has increased by 8.5 per cent to $559,000 from a revised $515,000 in the March quarter.

 

The data indicates that whilst the auction market has returned to a more balanced position, price growth is being driven by demand in the city’s more affordable suburbs.

 

The strong June quarter reflected the state’s increasing population and wider positive economic factors and has resulted in higher housing prices in the middle of the market.

 

Increased housing prices, rents and interest rates are also contributing to worsening affordability in Melbourne.

 

Dandenong, which now has a median house price of $500,000, recorded the highest increase – 31.5 per cent – followed by Rosebud, whose median is $413,000 after an increase of 18 per cent.

 

Broadmeadows, Footscray and Glenroy also recorded strong increases in demand and their median prices.

 

Analysis of sales by method shows that the median price of a house sold by private sale increased by five per cent and the median of a house sold by auction reduced by two per cent. This is in part due to an increased preference for auctions as a sales method in the first half of this year.

 

The increased demand and prices in suburbs not dominated by auction sales also reflects the fact that during the quarter the auction clearance rate dropped from 85 per cent to 74 per cent.

 

Prices have also continued to rise in the unit and apartment market, with an increase of 4.7 per cent to $463,215 in the quarter. Carlton, Ascot Vale, Malvern East, Northcote and Footscray had the largest increases in their medians over the quarter.

 

In the Regional Victoria the City of Greater Shepparton recorded the largest increase with a 7.7 per cent increase in the median to $271,750. The City of Ballarat recorded a 4.7 per cent increase to $270,000, the City of Greater Geelong recorded a 3.6 per cent increase to $365,000 and City of Greater Bendigo recorded a slight drop of 0.7 per cent to $265,000.

 

Please note that whilst median prices for a number of non-metropolitan suburbs are available on propertyDATA.com.au, the medians for non-metropolitan Municipalities are not.

Rob’s Blog - Rob Millar - Property Advocate

Monday, July 19th, 2010

ROB’S BLOG – NO. 4

What is a vendor advocate ?

According to The Macquarie Dictionary, to advocate is to support, recommend, act on behalf of, to defend or one who argues the cause for another.

A vendor advocate does all of the above including independent advice on not only who is the best agent to sell through but also what your property is really worth, long before you are asked to sign any authority. And who better to advise you than an advocate with over 25 years experience.

Me !

Selling property is one of the most stressful decisions you will ever make, so having access to accurate, independent and objective advice including the same data that agents use is critical. It will empower you to make informed decisions and ensure you get the best possible outcome. The best part is there is no additional cost! Sure, the fee negotiated with the agent will apply, of which we retain a portion but you will pay no more to have Domain assist you with your sale.

How do agent’s feel about advocates ?

The agents we appoint welcome our support as we make the entire process more transparent and see us as an ongoing stream of revenue ( subject of course to our high expectations). Domain only use the best agents, we arrange the appraisals, interview the agents, assess their advice and then oversee the entire selling process right through to settlement and beyond.

So what is the big deal ?  

 It’s the transparency. The biggest fear agents have is that if they tell you the what the property is really worth ( the dreaded bottom line ), the next agent won’t and they will miss out and all the future listing opportunities that goes with it because they were “too negative”.  Most vendors will invite 2 or 3 agents to appraise their property from which the winner is selected…..a bit like Master Chef and guess what ? The final candidates are usually outstanding. More often than not, the advice is the same, the advertising schedules are identical and the pricing is…..you guessed it, the same ? Even the testimonials are glowing ! Have you ever read a bad one ?  Each agent will have their point of difference upon which the battle lines are often fought and won. Depending on who is the most plausible will often decide who gets the listing. Some vendors flip a coin, others go on gut feeling and the positive relationship they have built up through all the  unnecessary contact points that the agent puts in place to win your business ! The problem with all of this is there is no objectivity and that is precisely what an advocate does.

 Here is an excellent case study :

Recently a client contacted me to seek my advice. They had already called in their preferred agent who was now pressing them for the listing and I guess they just wanted some reassurance that they were making the right decision. I advised them to seek a 2nd opinion and recommended an agent. The object of seeking a 2nd opinion was to seek clarity and since I was not involved with their dealings with their preferred agent, another opinion was critical. The advice the 2nd agent provided was far more realistic and after all the options were explained to my clients in a plain speaking approach, they still decided to go with their preferred agent but with a very different price platform recommended by the 2nd agent which I endorsed. You should have seen the grin on his face when I handed over the authority…not one word was said about the price range but if my client had gone ahead with their original proposal, the auction would have been a disaster. Whilst this was not an agency that we would have recommended for this particular property, the person handling the sale was well known to me and rated very highly.

Footnote :

 There are many outstanding agents to choose from but the listing driven nature of this industry makes it highly competitive. Our aim is to engage an agent that will be honest and achieve the highest possible sale price without the stress.

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