Concerned about auctioning your property on Election Day? Don’t be. We held two auctions this past Saturday, and both were resounding successes.
Debunking the Off-the-Plan Myth
Think off-the-plan apartments always sell for less than their purchase price? Think again.
We sold a modern two-bedroom apartment on High Street, Armadale, for approximately $600,000—32% more than its 2019 off-the-plan purchase price. An extraordinary auction result.
Federation Charm Sparks Bidding Frenzy
Our second auction at 41 Finlayson Street, Malvern, a freestanding Federation home, was hotly contested.
It garnered so much attention, I quipped during the auction that it had more views and sparked more interest than the last election debate!
Five bidders competed, leaving four underbidders likely to bid more aggressively at the next opportunity.
Underbidders drive future prices up—that’s how it works.
Market Rebound in Sight
The market seems poised to rebound.
While house price data lags real-time street activity, Melbourne has experienced four consecutive months of price growth.
This suggests the market likely bottomed out around November 2024 and has been improving since.
The market has priced in a full percentage point of rate cuts by the end of the year.
Historical analysis indicates that for each 100 basis points of interest rate cuts, inner Melbourne prices increased by 10 to 15 percent.
Do I believe it? Not necessarily.
One key takeaway from my finance degree was that past market data can’t reliably predict future movements. Forecasting house prices is a mug’s game.
However, rate cuts certainly don’t hurt when it comes to selling houses!
Stonnington Sentiment on the Rise
We’re already witnessing improved sentiment and demand in Stonnington.
All our new properties that launched on Saturday attracted between 20 and 40 groups—big numbers.
Let’s see if this momentum builds into our May and June auctions…
Feature Property: 5 Charles Street, Prahran
David Sciola 