Property market correction playing out selectively

“It’s really segmented into two parts,” said Melbourne buyers agent Julie DeBondt-Barker, who specializes in first-home buyers.

“There are still areas that are going up, or at least holding their own – the northern and western suburbs are still pretty solid price-wise. The second part would be what will be skewing the numbers – there is a lot of one- and two-bedroom apartments coming on the market.”

In Sydney’s inner-eastern Darlinghurst, a two-bedroom, one-bathroom terrace house sold for $1,365,000 on Saturday in an auction that pitted an investor from neighboring Paddington against a young professional family from the northern suburbs.

In Melbourne’s Balwyn North, this five-bedroom, four-bathroom 33 Jacka Street home sold on Saturday for $4.3 million, less than the $4.55 million it fetched in August 2017.

The family buyer won out for the do-it-upper at 192 Crown Street with plans approved for a conversion of the three-level dwelling into a three-bedroom home with two bathrooms and a front balcony.

The reserve price was not disclosed but the final selling price was 30.8 per cent above the highest offer prior, Ray White Touma Group sales agent Charles Touma said.

Vendors were adjusting their asking prices and buyers were also bidding with an eye on what higher borrowing costs were likely to cost them.

“Buyers have already factored in current and future interest rate rises, which is reflected in the prices they are offering,” said Ray White NSW chief auctioneer Alex Pattaro.

But the market is forcing vendors to make concessions. In Melbourne’s leafy eastern suburb of Balwyn North, mock-French Provincial style mansion on 1012 square meters sold for $4.3 million, less than the $4.55 million it changed hands for in August 2017.

Agent Brian Chen of VicProp Manningham was contacted for comment on the sale of the five-bedroom, four-bathroom 33 Jacka Street home.

Adelaide and Canberra posted the highest preliminary clearance rate of the smaller capitals, with a rate of 68.6 per cent, based on the results reported to date of Adelaide’s 159 and Canberra’s 88 scheduled auctions.

Brisbane, which had 143 scheduled auctions, recorded a 43.6 per cent preliminary clearance rate, its lowest since November 2020, when it touched 36.4 per cent, CoreLogic figures showed.

Leave a Comment