Property market goes full-throttle
Property editor Marika Dobbin takes a look at the property results from the weekend.
MELBOURNE'S property market is shaping up to record its strongest pre-Easter results due to insatiable demand.
Of the weekend's 884 auctions, 623 properties were sold, generating a clearance rate of 87 per cent when the 145 properties sold before auction are taken into account.
Buxton Carnegie's Paul Podbury said a three-bedroom house on 250 square metres at 321 Alma Road, Caulfield North, sold for $815,000, well above its $695,000 reserve.
''It is staggering that for a house that hasn't been touched in the 42 years since it was built, people are paying upwards of $800,000.
''Given the numbers we're getting at our auctions and also the number of people putting their hands up, it would seem as though demand is still very, very strong,'' he said.
Frank Valentic, of Advantage Property Consulting, said high prices were concerning - a two-bedroom Elwood apartment at 3/5 Beach Avenue, bought four years ago for $425,000, sold at auction for $737,000. ''Salaries aren't going up at that rate, so it's going to be harder and harder for people to get in the market,'' he said.
Michael Szulc, of Cayzer Real Estate, said a double-fronted brick home at 31 Langridge Street, Middle Park, sold for $1.82 million, several hundred thousand dollars above reserve.
''Despite murmurs that the market is softening, there were no signs of that at all this weekend - the market's red hot.''
In Kew, Noel Jones chairman Adrian Jones said six bidders competed for 224 Cotham Road, which sold for $1.7 million, after being quoted between $1.3 million and $1.4 million.
JPP buyer advocate Catherine Cashmore said sale prices were starting to fall within the expected ranges. She said 83A Shamrock Street, Brunswick, which sold for $695,000, was quoted at between $550,000 and $600,000, with comparable sales placing it in the high $600,000s.
A property sold by Hocking Stuart's David Wood at 45 Wright Street, Middle Park, went for $1.91 million, above a reserve of $1.8 million.
''I don't think the market's easing at all. There's probably a little hiatus coming with the grand prix next weekend and then Easter, so what's been on offer in the last little while will probably be it for the next month or so,'' Mr Wood said.
More than 80 per cent of the 155 properties in the $1 million-plus bracket were sold.
Almost 1080 auctions will be held in the coming week.
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