Melbourne spring property market guide: Auctions set to run to Christmas, New Year’s Eve

It’s traditionally the busiest time of the year for property — but how is the market affected this year? Whether buying, selling, or thinking about it, here’s everything you need to know.

No. 10B Rose Ave, Glen Waverley, sold for $1.745m in August.

Melbourne auctions could be held as late as Christmas Eve as the state faces a late start to the traditionally busy spring selling season.

Reservoir, Glen Waverley and Craigieburn are the city’s top auction suburbs where the most auctions have been scheduled so far this year, with between 383 and 441 auctions held in each postcode, according to realestate.com.au.

Clearance rates for greater Melbourne hit 88 per cent between the start of January and August 10 based on 16,621 results.

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No. 28 Oakhill Ave, Reservoir, sold for $1.438m earlier this month.

And greater Melbourne notched up the biggest auction volumes of any capital city, with 20.7 per cent more homes going under the hammer than the pre-Covid five-year average, according to CoreLogic.

Just under 10,000 auctions are estimated to take place in Victoria this spring, with 9300 to occur in metropolitan Melbourne, Real Estate Institute of Victoria estimates show.

But a number of those are expected to be postponed or withdrawn due to the lockdown.

While last year’s long lockdown caused a 63.7 per cent drop in the number of auctions held in spring, CoreLogic head of residential research Eliza Owen said there was a clear “bounce back” through summer when restrictions eased.

No. 33 Hollyhock Rd, Craigieburn, has just been listed with a $590,000-$640,000 asking price.

REIV president Leah Calnan said the state’s regional and metropolitan markets performed “exceptionally well” since the onset of Covid-19, with supply and demand pressures driving up prices.

But she said it was likely vendors who planned to list in early spring would now hold off.

This would push out sale campaign start dates to mid or late October and see others run until Christmas, creating a busier than normal summer.

The threat of further lockdowns could also result in auction campaigns being shortened to as little as three weeks, while midweek auctions may become more popular as agents worked through a backlog of listings.

The auction for 1/26 Botanic Drive, Glen Waverley, which is for sale for $1.1m-$1.2m, has been postponed.

Advantage Property Consulting director Frank Valentic said the market would go off like a “firecracker” when restrictions eased.

Postponed winter auctions would add to the pipeline of spring listings set to come through, resulting in a big influx of properties for sale.

“It’s like a pressure cooker and once that market resumes we’re going to see strong results again and buyers will have a lot more to choose from … but there will be more properties and more buyers as well,” Mr Valentic said.

No. 3/20 Oconnor St, Reservoir, recently sold for $465,000.

Create Real Estate director Steven Tabban said competitive househunters were forking out up to $60,000 more for a home in Melbourne’s west in the lead up to the current lockdown than what they would typically have paid just a few months prior.

Ray White Victoria chief executive Stephen Dullens said history showed the market bounced back quickly each time restrictions lifted.

Some buyers were so keen to forge ahead with a purchase they were prepared to buy without inspecting a property in person.

No. 22 Pagnoccolo St, Werribee, sold during Melbourne's sixth lockdown for $700,000 on August 20.

This was the case with 22 Pagnoccolo St, Werribee, which sold for $700,000 on August 20.

But he said private, one-on-one inspections were needed to keep the market going and most people were reluctant to commit to a purchase without inspections being held.

Barry Plant executive director Mike McCarthy said the huge pent-up demand seen since last year’s long lockdown was more than anyone could have anticipated.

His agency recorded clearance rates of more than 90 per cent some weeks and homes were snapped up within days of hitting the market.

No. 768 Plenty Rd, Reservoir, recently sold for $902,000.

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Emma Battye and Tom Cockburn are selling their Braybrook home and are keen to list it in spring because that's when their garden looks its best. Picture: Rob Leeson

SPRING LISTING

Emma Battye and her partner Tom Cockburn were looking forward to listing their Braybrook unit in spring.

The couple landscaped the garden and built a deck after purchasing the two-bedroom pad at 1/20 Melrose St last year and she said the garden and outdoor entertaining zone were big selling points, making it a spring market style home.

“It’s a great sort of young couple or family home for someone who wants space to entertain,” Ms Battye said.

“We bought it during last year’s lockdown, so end of June or early July, and we’ve done a lot of work on it since, a lot of landscaping, to make it a dream-style home.”

Ms Battye said it had been the perfect location to access Melbourne’s CBD, with her work commute to Parkville only taking 20 minutes.

The couple planned to list their home in late August for $590,000-$630,000 but have decided to hold off and wait for further government announcements.

No. 37 Watergum Ave, Craigieburn, is for sale for $549,000-$579,000.

– Use time in lockdown to research sales in your desired area and get a feel for what you can afford.

– Be wary of cash-strapped landlords attempting to urgently offload sub-par ex-rental stock that will need a lot of work. Building and pest inspections are a must.

– Consider making a pre-auction offer to get the jump on other buyers.

– Ask real estate agents if they’ve got properties for sale off market.

– If you’re trading properties, consider buying first before selling your current home. This means you can buy before the market rises further, while selling for a potentially higher price.

TIPS FOR SELLERS

No. 99 Spectrum Way, Coburg North, is for sale for $780,000-$840,000.

– If heading into an online auction, request Zoom auctions where possible as the platform tends to have less glitches.

– Stand out from the listings crowd during spring. Bake bread or brew coffee to give the property a homey feel at inspections. Add a vase of flowers to the table and fresh mulch to the garden.

– Owner occupiers are the dominant buyer type looking for homes during Covid-19 while investor activity is subdued. This means presentation is key, so give the home a fresh coat of paint, consider getting a stylist in and using rental furniture.

– Buyers want space for a home office or a gym, consider repurposing a garage, bungalow or room in your house to show them it can be used for that purpose.

– Be realistic about your asking price, don’t just base your expectations on that great sale down the street. Listen to feedback from the market and your agent.

Source: Miriam Sandkuhler – Property Mavens, Frank Valentic – Advantage Property Consulting, Mike McCarthy – Barry Plant, Anthony Webb – CEO at Philip Webb