Melbourne Auction Market Report 15 August 2020

Jarrod McCabe, director, Wakelin Property Advisory:

– Hi, everyone. Well, Stage 4 restrictions are certainly well in play now in Melbourne and that’s certainly had a direct impact on the property market. There was meant to be in excess of 200 auctions on the weekend just passed but that was held back to only just over 100 as a number were obviously withdrawn.

The prohibition around physical inspections is obviously going to limit any vendors from commencing new campaigns, probably until at least early September but potentially even until the 13th, 14th of September when we do come out of lockdown.

Obviously, when buyers can’t physically inspect property, they’re very reticent to proceed with purchases. There will be some that may consider it but I think it will be in very, very limited circumstances and it’s not something that we would recommend to any of our clients. But obviously there’s still a few things that are being wrapped up and a number of the auctions that did proceed over the weekend typically did so because there had been reasonable interest in the restricted campaigns that had been conducted before the Stage 4 lockdown came into play.

One in particular was number 39, Iffla Street in South Melbourne. Now, there was 40-odd people or certainly registrants that were in attendance for that online auction. There was meant to be around six that were bidding, as evidenced by those that had cameras on versus those that were just observing, not having cameras on in the Zoom auction. In the end, only three participants did get involved but it certainly was quite competitive. The bottom of the quote was $1,400,000 which was where the vendor bid started and after some quick bidding, it got up to $1,660,000, and then the property did finally sell for $1,732,500 to a couple in their 40s.

So it was well in excess of the top end of the quote so still obviously competition around for the right properties and the market will continue to kick on once we get out of this Stage 4 lockdown, albeit at what level, we’ll have to wait and see once we get a determination of the interest levels.

Excuse my children, I’d better go and check on them. Look after yourselves and stay safe, bye.