Noel Jones director David Gillham (pictured) said overseas buyers have become very active since the Australian dollar started dropping in value two weeks ago.
Noel Jones director David Gillham (pictured) said overseas buyers have become very active since the Australian dollar started dropping in value two weeks ago. Photo: Andrew De La Rue
Melbourne property market's last hurrah before school holidays and the dormant winter market resulted in another strong 71 per cent auction clearance rate amid signs the low Australian dollar could be drawing in overseas buyers.
Low interest rates and increased consumer confidence have all contributed to resurgent property markets in Melbourne and Sydney this year. There was a flurry of bumper sales over the weekend, including several $4 million-plus results and other properties tipping their reserve prices by 20 per cent and more.
Noel Jones director David Gillham said overseas buyers have become very active since the Australian dollar started dropping in value two weeks ago.
''They're getting nearly a 10 per cent discount just bringing their money into the country,'' Mr Gillham said. Advertisement
He auctioned a 1920s-era property at 6 Adrian Street in Glen Iris on Saturday which had a reserve of $1.52 million, but sold under the hammer for $2 million.
''We had one buyer going up in bids of $90,000 and $80,000. If that [overseas] buyer hadn't been there, it probably would have sold for around $1.6 million,'' he said.
Whereas some agents have reported an unexpectedly strong year, Mr Gillham said the move in his market, in the south-east suburbs, came about six weeks ago.
''The first quarter of the year was pretty sluggish but in the last six weeks we've had phenomenal results. Land in particular has been going well and selling over reserves by 20-25 per cent,'' he said.
Land was the key attraction at 7 Kenley Court in Toorak, one of the city's most exclusive streets, where a tired three-bedroom house on an 864 square metre parcel of land fetched $4.7 million under the hammer through RT Edgar.
The final price reflected its land value, with the house likely to be knocked down and a new property erected in its place.
RT Edgar director Warwick Anderson said some of the weekend results were likely boosted by the lack of stock available in the next few months.
''It will be at least a month if not maybe eight weeks before more properties come on the market,'' Mr Anderson said.
However, Lynton, the most expensive property on offer over the weekend failed to sell. The elaborate triple-fronted Victorian at 85 St Vincent Place in Albert Park passed in on a $6.2 million vendor bid.
Held in front of about 400 people, the auction elicited a single $5.8 million bid before the vendor made two bids of $6 million and $6.2 million and passed in the property.
In April, Cayzer Real Estate sold three adjoining unrenovated terraces on St Vincent Place for a total of $12.3 million.
The auction clearance rate of 71 per cent was derived from 681 results reported to the Real Estate Institute of Victoria. Of the 197 properties that passed in, 102 did so on a vendor's bid. A further 58 results are still to be reported.
