Rate Cut Raises Little More Than A Ripple Across Market

The Age

Monday November 10, 2008

Kate Nancarrow

IF THE Reserve Bank's Cup Day interest rate cut had any effect on Melbourne's erratic auction market, it appeared to be at the lower end, with only properties below the $500,000 mark having a clearance rate

above 50%.

The clearance rate overall was 54%, but first-home buyers, and possibly investors, seem to be the only groups keeping a floor - albeit an uneven one - under a falling market.

Of the 143 properties in the $500,000 to $700,000 range, only 48% sold, and of the 75 properties in the $700,000 to $1 million range, only 42% sold. And in the $1 million to $2 million range it was worse again, with only 26% of the 30 properties selling.

Agents reported some auctions with no bidders and others with up to nine, with little predictability about where buyers would emerge. But most agents said first-home buyers were active - drawn by falling interest rates, increased Federal Government grants and the scent of falling prices.

In South Yarra yesterday, Williams Batters had no bidders at the auction of a five-bedroom Victorian home at 61 Cromwell Road that was passed in on a vendor bid of $1,675,000.

Further south, Hodges Jason Gill passed in a two-bedroom villa unit at 2/33 Champion Street, Brighton, on a genuine bid of $455,000 before selling the property for $480,000.

Mr Gill said properties close to shops and transport in Brighton were selling well, but those "a bit further away" were suffering.

In Murrumbeena on Saturday, JPP Buyer Advocates' Catherine Cashmore attended the auction of a two-bedroom red-brick villa unit at 1/22-24 Ardyne Street and was dazzled to see nine buyers take the bidding to $422,500. She said the property was advertised at $360,000-$400,000, but stiff competition took it to a "last year's price".

There were similar frenzied scenes in St Kilda East yesterday when another nine bidders fought over a run-down two-bedroom 1970s apartment at 1/6 Hughenden Road.

Auctioned by Noel Jones with a quote price of $310,000-$340,000, it sold for $358,000. The agency's director, Adrian Jones, said the apartment appealed to investors, first-home buyers and owner-occupiers, which produced more buyers. He said buyers were nervous and there was no pattern across Melbourne real estate. "Some good quality properties in middle suburbs are not selling and some are," he said.

LISTINGS

Weekend 568

Yesterday 17

Last Sunday 6

This weekend last month 577

This weekend last year 897

CLEARANCE RATES

Weekend 54%

Yesterday 53%

Last Sunday 100%

This weekend last month 62%

This weekend last year 79%

Total Volume (Auctions): $168.93 million

Total Volume (Private Sales): $208.18 million

TOP 5 HOUSES

1. 62 Dendy Street, Brighton $2,300,000

2. 12 Mount Street, Eaglemont $1,585,000

3. 34 Wattle Grove, Portsea $1,445,000

4. 278 McKean Street, Fitzroy North $1,260,000

5. 8 Paisley Street, Balwyn $1,238,000

TOP 5 BARGAIN HOUSES

1. 19 Greenbriar Way, Cranbourne West $205,000

2. 37 Frost Drive, St Albans $250,000

3. 14 Thrower Street, Reservoir $250,000

4. 82 Welwyn Parade, Deer Park $260,000

5. 22 Huntly Court, Langwarrin $263,000

TOP 5 APARTMENTS

1. 5/10 Waltham Place, Richmond $942,000

2. 2/7 Cromwell Road, South Yarra $915,000

3. 9 Kennedy Street, Richmond $820,000

4. 7/35 Victoria Avenue, Canterbury $780,000

5. 4/33 York Street, Richmond $771,000

TOP 5 BARGAIN APARTMENTS

1. 118/2 Eastern Place, Hawthorn $122,000

2. 20/709 Barkly Street, Footscray West $160,000

3. 2/149 Alma Avenue, Laverton $165,500

4. 2/38 Church Street, Epping $203,000

5. 15/106 Ascot Vale Road, Flemington $210,000

© 2008 The Age

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