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Property Prices Returning to 2007 Boom Peaks
24.08.2009 |
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August 24, 2009
By: Kate Nancarrow; The Age
MELBOURNE|S resilient inner-city market has made last year|s economic collapse look like a mere hiccup as weekend auction results reached late-2007 boom peaks.
Agents said the boom prices reflected Melbourne|s rapidly increasing population, the relaxation of foreign-investment rules and an increased desire from buyers to live close to the inner city.
These factors produced intense competition - up to six bidders - and high prices at many auctions.
Buxton Bentleigh|s Craig Williamson received a clear sign of the market|s resurgence on Saturday when he auctioned a double-storey brick home at 25 Atkinson Street, Bentleigh. It had last been sold in November 2007 for $1,271,000 but on Saturday it brought $1,275,000.
Mr Williamson said the market had had its ups and significant downs in the past 18 months but now it was 'back to where it was'.
His firm sold all eight properties auctioned and, with up to six bidders at some auctions, prices had to rise, he said. 'In a day of auctioning, I|ve never taken so many bids but only one person can buy, so the five that missed out are on to the next property, forcing prices up.'
He auctioned a three-bedroom home on subdivided land at 19 Miles Street, Bentleigh, that sold for $661,000, above a reserve of $600,000.
'It would|ve been worth mid-$500,000s at Easter,' he said.
Buyers| advocate Catherine Cashmore, of JPP Buyer Advocates, attended four weekend auctions, from Ringwood to Elwood and Elsternwick, and said all had huge crowds and desperate bidding.
A house at 45 Regent Street, Elsternwick, sold for $1,080,000 and a two-bedroom apartment at 7/46 Foam Street, Elwood, attracted several bidders before it sold for $432,000.
Ms Cashmore said all price ranges were rising but properties below $500,000 were increasing at a remarkable rate. 'The vendors who are really making a killing are those who have properties to attract the first home buyers and investors,' she said.
In the east, Noel Jones| director Adrian Jones reported his firm sold 14 of 15 properties, including the weekend|s top sale of a five-bedroom house at 49 Wentworth Avenue, Canterbury, for $3.53 million.
The property was built to appeal to the South-East Asian market. 'Changes to the Foreign Investment Review Board rules have allowed more Asian people and Asian companies to buy property,' he said.
www.theage.com.au/business/property-prices-returning-to-2007-boom-peaks-20090823-ev2s.html |
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02.08.10
