Tight stock levels: are you ‘buy ready’?
One may be mistaken for thinking that, since Anzac Day, it is the first weekend out of lockdown again, with queues of potential buyers lining up for up to 15 minutes before scheduled open times to inspect the available properties over the past two weekends.
Stock levels have tightened even further.
Vendors are now even less prepared to sell before they have purchased for fear of being homeless as the number of available rental properties continues to decline.
While there has been much talk about landlords opting out of property investment as a result of the changes to minimum rental standards and increased service checks, a less discussed reason could be the number of properties in tourist locations that have been converted to ‘Air BNB’ as the weekly/daily rents. Particularly during peak times, these can be higher than a permanent rental, as well as providing the owners with opportunity to use the properties themselves.
Where Australians have had the property market predominantly to themselves since Covid, the demand from internationals is growing. In particular, Chinese buyers, as a result of China re-opening their borders for travel out of the country, are increasingly active and making the most of the low Australian dollar.
Significant increases in the number of people migrating to Melbourne is also adding stress to both the rental and buying markets; however, the news out last week that the government may reduce the anticipated migrant numbers entering Australia is a step forward, although this is unlikely to have much impact on demand in the short term.
Word on the street, speaking with agents across some key councils (Boroondara, Stonnington and Bayside) have advised that they are speaking to a lot of vendors considering selling, but they are not prepared to commit to a campaign until at least August or September this year.
With demand increasing weekly and the low stock levels, competition is likely to increase in the short term for the good properties.
Competition for the good properties is as strong as ever. As a buyer, are you prepared for this and have you undertaken the proper due diligence and homework required for what you are buying? Missing the right property now could mean a wait for several months until you get the chance again to buy, and what will the market be like then?
Highlights – some sales from the week where buyer competition pushed results well above quoted levels;
30 Aintree Road Glen Iris, quoted $1.6-$1.7m – sold $1.976m
84 Harp Road Kew, quoted $2.35-2.85m – sold $3.040m
3 Scotch Circuit Hawthorn, quoted $1.2m-$1.32m – sold circa $1.45m
45 Victoria Road Hawthorn East, quoted $2.6m-$2.85m – sold $3.340m
1/19 Bertram Street Elsternwick, quoted $1.55-1.7m – sold circa $1.85m
12 Brown Street Brighton East, quoted $3.4-3.7m – sold $4.5m
120 Dendy Street Brighton East, quoted $2.9-3.19m – sold $3.675m
37 Kendall Street Hampton, quoted $1.7-1.8m – sold $2.03m
Some of the better properties currently on the market; an architect’s view
7 Sheridan Court Brighton – Guy St Leger/Tom Davidson, Buxton
38 Chrystobel Crescent Hawthorn – Mike Beardsley/Ellie Morrish, Jellis Craig
9 Central Park Road Malvern East – Andrew Hayne/Justin Krongold, Marshall White
- Modern architectural home, 4-3-2, ~700sqm, pool, Brighton East – circa $6m
- Single level 3-2-2, ~410sqm, Brighton East – circa 2.2m
- Period weatherboard, water views, ~460sqm, Brighton – circa $2.5m
- Upside down TH, Bay views, 4-3-2, Brighton – circa $4.5m
- Contemporary 4-3-2 family home with pool, ~560sqm, Brighton – circa $4m+
- Single level Edwardian on ~830sqm looking for update, Sandringham – circa $3m
- Modern 3 level w lift, 4-4-3, Bay views, Black Rock – circa $6.5m
- Period 2 storey 4-2.5-2, ~700sqm, Caulfield North – circa $3.3m
- Renovated single fronted Victorian, 3-2.5 home, Kew – circa $3m
- Two storey renovated Victorian, 4-2-2 car, ~371 sqm, Malvern – circa $3.5m
- Two storey Art Deco family home, 4-2.5-3, ~900 sqm, Malvern – circa $6.5m
- Edwardian family home, renovated, north rear, ~400 sqm, Malvern – circa $3.5m
- Single fronted Victorian, 3-1, ~143 sqm, Windsor– circa $1.8m
- Family home, 4 beds, ~917 sqm, Kew – circa $4.5m
- Brick Victorian family home, 4-2-2, west rear, ~566sqm, Malvern – circa $3.6m
- Renovated Victorian, 4-2-2, pool and studio on ~795sqm, Armadale – circa $6.5m
- Free Standing Edwardian, 4-2-1, Prahran – circa $2.8m
- Renovated, single fronted semi-detached, 3beds, 2 car, ~380 sqm, Malvern – circa $2.5m
- Renovated Victorian cottage, 2 bed, 1 bath, ~130sqm, Prahran – circa $1.4m
- Low maintenance townhouse, 3-2-1, Armadale – circa $2.2m
30 Aintree Road Glen Iris delivers a well presented single fronted Victorian with 3 beds, 1 bath and a study. Open plan family and dining room, as well as offering a flexible studio and workshop at the rear of the property. This could be converted into parking if desired via the ROW (STCA). The auction attracted a large crowd of both downsizers and young couples on a cold winter’s day. Quoted $1.6-$1.7m, auctioneer David Sciola of Jellis Craig managed the bidding from 5 bidders. It was opened at $1.6m, quickly getting to $1.71m where it was put on the market. The home eventually sold for $1.976m. A strong result for the area.