Home buyer beats interstate investor invasion in Melbourne's most affordable Melton

Home buyer beats interstate investor invasion in Melbourne's most affordable Melton
Home buyer beats interstate investor invasion in Melbourne's most affordable Melton

Toorak's $24 million plus record setting, snappy sale by the wealthy Smorgon family to Chinese buyers might have captured the headlines last week, but just 50 kms away sits the nation's cheapest property opportunity.

Melton South secured the lowest auction result when $235,000 was paid for a three bedroom house.

The sale price of 63 Station Road (above)  through Raine & Horne was at less than a third of the weekend Melbourne house median.

Even Sydney investors have the affordable Melbourne locality on their purchasing radar, the Domain real estate suggested at the weekend.  
 
But the vacated property was picked up by a local home buyer, Raine & Horne Melton agent Kieran Carson advised.
 
He said his four bidders were split between two home buyers and two investors seeking the three bedroom brick house with central bathroom that last sold at $72,000 in 1999.
 
A recent study has shown around 80 percent of the Victoria’s investors do their investing locally.

The study showed Queensland was the next favoured investment location, but a long way behind as just 12 percent of Victorian investors own property in the sunshine state.

Victorian investors steer clear of pricey NSW accounting for just 3.3 percent, according to the Terri Scheer Insurance survey.

But there's no stopping the Sydney supremacy when it comes to auction sales success during 2016.

Auction volumes bounced higher across the country from the long weekend dip, but Sydney was the only capital city to record a clearance rate above 70 percent.

With prices ranging between $400,000 and $3.42 million, Sydney vendors secured the sale of 74 percent of stock. There was a $1.3 million median house price and an $857,000 apartment median.

The nearest rival was Melbourne's 68 percent success rate with its houses recording an $875,000 median and units at a $545,000 median.

The national clearance rate was 67 per cent from the 2,139 capital city auctions, up from the 65 percent with the 1,100 listings in the prior week.

This time last year the volume was 2,268 and the clearance rate was 77 per cent.

CoreLogic's Kevin Brogan noted the trend in auction clearance rates had "nudged lower" over the last few weeks.

Some 964 Melbourne auctions have been reported, showing a preliminary clearance rate of 68 per cent, an improvement from last week when 64 per cent of the 341 auctions sold.

"Although Melbourne’s clearance rate remains under 70 per cent for the second week in a row, the increase this week signifies Melbourne’s auction market is close to reverting back to the levels seen prior to the slow down over the Queen’s birthday weekend," Kevin Brogan said.

At the same time last year, Melbourne’s clearance rate was 79 percent.

The Inner sub-region was the busiest for auctions across Melbourne with 202 homes going under the hammer.

Sydney’s preliminary auction clearance rate was 74 per cent this week, virtually matching 74 per cent last week.

"This week’s result is significantly lower than one year ago at 82 per cent, however the city continues to maintain a much higher clearance rate than what was seen towards the end of 2015.

Of Sydney's sub-regions, the best performers were the Ryde sub-region at 88 per cent and North Sydney and Hornsby at 85 per cent.

But the priciest sale was $3.42 million on the upper North Shore at Pymble followed by a Chiswick riverfront at $3.25 million.

Lantern Hill, a five bedroom 1940s home with pool and tennis court on 2675 sqm at 8 Macquarie Road, Pymble (below) was sold pre-auction through McGrath at $3.42 million.

Home buyer beats interstate investor invasion in Melbourne's most affordable Melton

It last sold at $2.58 million in 2013.

It was marketed as French Riviera style.

The $3.25 million Chiswick knockdown house was three bedroom original home on a 644 sqm holding at 8 Fortescue Street.

Home buyer beats interstate investor invasion in Melbourne's most affordable Melton

It was the street's eighth sale above $3 million in the past six years, including a $4.9 million sale just two week's ago of a contemporary home.

Domain senior economist Dr Andrew Wilson noted the busiest Sydney suburb with 11 auctions was Strathfield, including the recently built 27 Myrna Road, (below) with 325 sqm internal space, which was passed in at $3.4 million.

Home buyer beats interstate investor invasion in Melbourne's most affordable Melton

Toorak secured the country's highest auction price when 16 Chastleton Ave sold at $5.02 million.

Home buyer beats interstate investor invasion in Melbourne's most affordable Melton

It last sold at $1.05 million in 1998.

Kay & Burton secured the likely 1950s knockdown price for the three bedroom house on 688 sqm.

The $24 million mid-week sale of the Smorgon's property secured the newly built seven-bedroom home on 1770 sqm at 4 Robertson Street was for the buyer, Shirley Ching Hua Hsieh.

The undisclosed Toorak price failed to better the Victorian record of $26 million at Portsea. 

With record June Saturday auction volumes for Melbourne, Glen Waverley had the most auctions in Melbourne with 21 scheduled including the modern home at 6 Darri Court, (below) which was passed in at $2.525 million.

Home buyer beats interstate investor invasion in Melbourne's most affordable Melton

The 785 sqm block had cost $1 million in 2014.

Brisbane's clearance rate dipped to 44 per cent, down from 46.3 per cent last week.

Sales included a Norman Park 1930s workers’ cottage in Brisbane’s east (below), marketed as listed for the first time, and fetching $669,000.

Home buyer beats interstate investor invasion in Melbourne's most affordable Melton

The deceased estate at 39 Frank St, Norman Park attracted nine registered bidders.  

Adelaide sat at 67 percent cleared, down from 75 percent last week.

Perth's clearance rate was 34 percent, compared to 28.6 percent last week.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Auctions Clearance Rate

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