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Slow down in Melb market

Discussion in 'General Property Chat' started by leicachamp, 8th Dec, 2015.

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  1. leicachamp

    leicachamp Member

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    I see a slowdown in Melb, especially in some Eastern suburbs like Doncastar and Glen Waverly. Some Western suburbs like Sunshine and Reservoir have also experienced a higher than usual pass in at auctions.

    Is my perception based on Auction results false?
     
  2. melbournian

    melbournian Well-Known Member

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    I went to a balywn, Doncaster, box hill auction. They were all passed in. It has sometimes to do with crazy expectations. I went to one place he bought it in April this year and wanted 180k more. Others were like they saw a neighbour achieve a high price and wants more than normal. Obviously not as hot as before.

    Maidstone however kept on going pulled in 725k on similar block sold for 633k a month ago.
     
  3. leicachamp

    leicachamp Member

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    I was told the Eastern Suburb slow down was due to monetary cashout restrictions from China.
    An auction i attended in Airport West went 105k over my limit. Vendor purchased in 2013 for 697k. Sold for 1.05mil with plans for 4. Really cant see how the purchaser is going to make money, except getting themselves a job!!!!
     
  4. apk

    apk Well-Known Member

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    Asking price in Sunshine west is going crazy, this 3 unit block sold for $670K last year. Its in market with asking 1M+.
     
  5. leicachamp

    leicachamp Member

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    Which one?
     
  6. apk

    apk Well-Known Member

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    Mailey st
     
  7. leicachamp

    leicachamp Member

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    Be interesting to see what they get. Place is not strata titled. The yield would be pretty dismal at 1mil.
     
  8. leicachamp

    leicachamp Member

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    Sunshine West has been the surprise of this year. Its growth has been more than Albion and Sunshine North.
     
  9. SerenityNow

    SerenityNow Well-Known Member

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    I had a glance at results the other day and one thing that jumped out at me was the difference in clearance rates (in general, not suburb specific) for houses vs units. This would make sense to me intuitively...
     
  10. tone1

    tone1 Active Member

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    Auctions I have recently been to in the inner-west are basically non-events, no bidders or competing interest whatsoever. Earlier in the year, this was definitely not the case. Pass in's are staying on the market for longer. All the signs of a weakening market. I think the position on the Melbourne market will be more clear early next year when there won't be 1000+ auctions every week and the distractions of Christmas which are partly to blame for what is happening now as well.

    There is always a slow down towards the end of the year, so it's tough to tell what is truly happening right now.
     
  11. melbournian

    melbournian Well-Known Member

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    @tone1 strange all the Maidstone ones I have been to went like crazy
     
  12. tone1

    tone1 Active Member

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    Depends on the property for sale. I think top-grade or development properties are still getting competition, anything else is not.

    The properties I recently saw for auction was a 3BR period renovator and 3BR freestanding townhouse on single block. These kinds of properties would have sold like hotcakes earlier in the year.