Real estate begins to bloom

The residential property market sprang to life on the first day of spring after months in the doldrums, with strong auction clearance rates in Sydney and Melbourne.

There was little cause for optimism in the lead-up to the first day of the spring selling season because of the depressed market.

However, Melbourne recorded a 63 per cent clearance rate, according to the Real Estate Institute of Victoria (REIV), up from 55 per cent for the same time last year. In Sydney there was a 63.9 per cent clearance rate, according to Australian Property Monitors.

Sydney’s highest result was for a five-bedroom house in the north shore suburb of Willoughby, which sold for $2.3 million.

Selling agent John McManus of McGraths said there were more than 40 people at the auction. He also sold an Artarmon home with a $1.4 million reserve for $1.575 million in front of a 60-strong crowd.

“Saturday was a fantastic day, buyers are starting to come out of their shells,’’ he said, adding that the mood was far more positive and there were a lot more listings going into spring.

The Beecroft home of former Olympic rower Steve Stewart and his wife, Kate, sold for $1 million. The couple renovated the home after buying it in 2009. Mrs Stewart’s grandparents originally bought the house off-the plan in 1964.

In Melbourne, a four-bedroom Canterbury home on a 1678 square metre block was one of the top sellers at $3.25 million after strong bidding.

In second place, a three-bedroom Toorak home, designed by architect Michael Munckton, sold for $3.16 million.

Melbourne buyer’s advocate Mal James said a lot of homes in the $1 million-plus bracket sold under the hammer.

“Last weekend just one in five sold under the hammer, this week it was more like one in two,’’ he said.

“Every second auction we went to had two, three or four bidders.”

Mr James said there was more quality stock on the market and he suggested vendors may be aligning their price expectations with what the market is willing to pay.

However, he did say said the promising weekend results may be a temporary rise. “We saw something similar last year that did not translate into a particularly strong spring, but it was good to have some positive news for the first time in a while,’’ Mr James said.

He said a 150-strong crowd turned out for the auction of a renovated Edwardian weatherboard home in Kew, which sold for $2.86 million.

Stock levels have been low in both Melbourne and Sydney in recent months. The REIV expects about 540 properties to be auctioned in Melbourne next weekend, up from 470 auctions from the weekend just passed. Numbers are expected to increase to 690 the following week.

Source: http://www.afr.com/p/business/property/real_estate_begins_to_bloom_Naf6rEyDmLnxh4wUBqnQ8L