Market cools as the mercury goes down.
There were 2660 auctions reported to the Real Estate Institute of Victoria (REIV) over the 4 weekends of June, with 1925 sales recorded. 735 properties passed in, 292 on a vendor bid. The clearance rate averaged 71%, down on May’s 73%.
A surge in stock in the rush to sell before winter really kicks in, plus the start of school holidays, contributed to a retreat in clearance rates, which went down to a year low of 71% for the second half of June. This is way down on 79.6% for June’s final weekend last year.
But performance is patchy with some suburbs still clearing well. Yarraville, Pascoe Vale and Caulfield South achieved 90% across May this year. But the Outer East scored only 66.3% and the South East 63.2% on June’s last weekend.
The Brexit vote on June 23 came and went without a noticeable impact on Melbourne auction results. However how the ASX responds in coming months is yet to be seen. Big dips in share prices results in more conservative borrowing and buying, particularly with higher end properties and holiday homes.
Notable sales in June included a $3.06m knockdown at 34 Bowman St. Aspendale as the deep pockets keep heading south along the beach-frontage strip.
Residents of Earl St. Kew saw Chinese investment interest on June 25 when two town house developers competed for a large block, both bidders assisted by Mandarinspeaking agents. The California bungalow on 1115 sqm. sold for $2.87m. Neighbours can expect the home to be razed for a medium-density development.
Far fewer auctions are scheduled for the first weekend of July, with sellers avoiding the election.
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