This year - Auctions: 1192 / Clearance rate: 82%
Last year - 
Auctions: 51 / Clearance rate: N/A
Source: REIV

Collectible properties on the rise.

The month of March has given rise to three super Saturdays, boasting an estimated average clearance rate of 79%. The high success rate, coupled with high volumes, is testament to surging market demand in Melbourne at present.

The weekend confirmed quality well-located assets, both units and houses, are performing well. However, despite strong demand B-grade apartments are experiencing patchy performance.

The most well-attended auctions are those offering something special – that being a rare or unique property type or a “collector’s item” period home. Like rare coins or vintage cars, Melbourne isn’t adding to the supply of period character homes, with classical Victorian styling or the beautifully crafted Art Deco brickwork become a thing of the past.

As city boundaries expand and populations increase these increasingly rare property types represent a decreasing proportion of housing stock, with positive implications for the growth of these assets.

While all buyer types remain active, it’s experienced buyers that are dominating the market – including established buyers, experienced investors and off course buyers advocates. One such example was the auction of a quality 1950s apartment in Hawthorn East, which drew a crowd of more than 40 and was subject to strong competition among well-prepared buyer’s advocates who were prepared with realistic limits. The property sold within a fair range reflective of demand for quality established property in the area.

Dissatisfaction from missing out, together with the high pressure of auctions, is seeing an increasing number of prior offers from inexperienced bidders. While agents are sometimes receptive to this, current demand for quality housing lends itself to sale via auction to maximise the price outcome for the vendor.

If you’re considering a prior offer, act strategically – that means, act early (not right before the auction) with a time limited offer, and not one subject to finance.

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: © 2017 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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