Melbourne Property News Monthly Wrap – May 2023

Great results for our vendors in May

Over May’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,696 auctions. 1,797 properties sold. 1,347 at auction, with 462 passed in. 449 properties were sold before auction & 1 property was sold after auction. The clearance rate averaged 78.5%, rising from April’s 77.8%.

More homes sold before auction

Demand right now is very strong with the number of Melbourne homes negotiated and sold before auction rising by over 10% across May. (April: 393, May: 434). Correctly presented and marketed homes will sell, but the key is to maximise your sale price!

Our latest maximised sales 

Successful sales through Vendor Marketing keep coming with a family home, ripe for redevelopment at 12 Drake Street Brighton selling on May’s last Saturday. Quoted at $3,500,000 to $3,800,000, 7 bidders competed before it eventually sold for a terrific price of $4,875,000.

Also, on May 20th, 8 Crossman Court in Box Hill South, quoted at $1,600,000 to $1,750,000, sold for $1,995,000 with 3 bidders competing. Another great result with Vendor Marketing! 

If you really do want the best result Vendor Marketing will help you select the right selling agent, with the right marketing strategy. 

Will the supply of homes stay low? 

The pool of available properties right now is the smallest it’s been in more than 10 years (CoreLogic).

Some sellers have delayed going to market which means there is a build up in a reserve of homes sitting on the shelf – that may be released this coming Spring.  

If conditions are buoyant enough then, this increased supply could put downward pressure on both sale prices achieved and clearance rates. The upshot of this is now is indeed a good time to sell! – while demand is running so hot. 

State Budget’s new Land Tax causes a furore

Critics have slammed the government’s new land taxes which will effect 900,000 Victorians with holiday homes or investment properties, with most paying out an extra $1000 a year at least to cover ballooning government debt. This expense will flow on to renters.

More rental properties convert to Airbnb

Adding to the rental crisis, which has seen steep rent rises over the last 12 months, the trend to move rental properties to the short term stay market keeps growing across Melbourne. For example over the last 12 months Port Phillip district’s short-stay listings have jumped 44%, from 1365 to 1959 (Domain) – removing 600 properties from the traditional rent market there.

Craig Knudsen
Principal Advisor
Vendor Marketing

Brought to you by Vendor Marketing – Melbourne’s most qualified vendor advocates