Stock shortage evident despite strong auction weekend.

Summary
This year - Auctions: 1238 / Clearance rate: 78%
Last year - 
Auctions: 1754 / Clearance rate: 65%
Source: REIV

It was the final lot of November auctions at the weekend, and market performance didn’t disappoint. More than 1200 properties were offered to the market, with a high absorption rate.

While clearance rates held up compared with last year, volumes did not. According to REIV, there was a whopping 1754 properties auctioned on this same weekend in 2015 - the 2016 volume consistent with reports of a 20% drop in listing volumes in Melbourne this year.

With just three weekends before Christmas and the unofficial closure of real estate markets for another year, buyers are expected to remain active, notwithstanding the impact from a reduction in listings from mid-December onward as vendors turn their attention to the festive season.

This week's auctions

Each week WBP’s property advisers review hundreds of properties and attend auctions throughout Melbourne,
ranking each property on a scale of 1 to 10 based on its investment potential. This week their focus is on...

 161128 6.11 Broomfield Avenue

161128 68 Hardiman Street

161128 5.51 Abbott Street Sandringham

Investment rating:

5.0 / 10

Investment
rating:

7.5 / 10

Investment rating:

9.0 / 10

6 / 11 Broomfield Ave., Alphington

68 Hardiman St., Kensington

5 / 51 Abbott St., Sandringham 

Bed 2    Bathroom 1   Parking 1

Bed 2   Bathroom 1    Parking  1

Bed 2 Bathroom 2   Parking 1

Suburb median unit price (REIV)

not available

Suburb 
median house price (REIV)

$1,165,000

Suburb
median unit
price (REIV)

$890,000

SOLD: $530,000

SOLD: $1,211,000

SOLD: $880,000

This first floor, north-facing, two-bedroom apartment with balcony is situated in a well maintained block in one of Alphington’s picturesque tree-lined streets. The apartment itself appears to have undergone a conversion from a one-bedroom property to a two-bedroom property. There is a bedroom located directly off the living room via double doors, suggesting that this space was previously used as a dining room. Unfortunately, the conversion of the dining room to a second bedroom has made the space feel small and tight. Both bedrooms are smaller than what we would typically recommend to our clients and no internal laundry facility may be a deterrent to potential tenants who enjoy their own privacy. Furthermore, the location of the property is somewhat distant to the local village, cafes and transport, which, from a rental perspective, is not ideal for tenants.

 

This beautifully renovated semi-detached hawthorn brick Victorian features, two bedrooms, one bathroom and one car space. The property sits on approximately 180sqm of land and has been extensively renovated to suit a young couple, with or without a family, empty nesters and renters. The property itself ticks a lot of boxes, but it has to be considered in the context of its location. It’s nestled between the Citilink Freeway on the east side and train lines to the west, which is not ideal. Good proximity to transportation is important, but being too close can negatively impact future resale potential due to noise and pollution issues.

This one of five semi-detached villa unit is positioned at the rear of the property. It has been extensively renovated and offers two bedrooms, two bathrooms including an ensuite to master bedroom with walk in robe, a rear wrap around courtyard and car space. The property is ideal for young couples or downsizers looking for a space suitable for entertaining. The villa is superbly situated within a few minutes’ walk to shops, transport and the beach. The car space is accessed from both the villa driveway and a rear laneway. The rear laneway is a great alternative when needing to reverse out of the garage to avoid reversing the length of a long driveway. The owners have gone to great lengths to renovate the external premises. What was previously a brown brick façade has now been rendered. We recommend due diligence be conducted on the body corporate minutes to ensure the external upgrade rendering was approved and permitted. The new potential owner shouldn’t have to take on this issue with other owners in the block if permission was never granted.

Speak with a WBP Property Adviser about how we save you time and improve your chances of buying a property with the right fundamentals for growth. To find out more click here or contact us on 1300 302 581.



Disclaimer: © 2016 WBP Property Group (WBP). The WBP Market Wrap has been produced as a general guide and does not constitute advice. While it was produced in good faith and with due care, no representation is made for the accuracy of the whole or part of the document. WBP accepts no liability for damages suffered by any party resulting from their use of information in this presentation.


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