Archive for May, 2021

Market Update | 22 & 23 May 2021

We enjoyed a much more pleasant weekend weather-wise, on a busy auction Saturday which yielded some mixed results. The REIV recorded a clearance rate of 81 per cent, with most properties that sold under the hammer attracting 2-3 bidders each.

The Victorian government’s planned stamp duty and land tax increases in the 2021-22 state budget continues to draw debate, with the REIV determined to work with the government, the opposition and cross-bench to see positive change.

REIV CEO, Gil King, said that “this ill-considered announcement shows a fundamental misunderstanding of the real estate market, and the contribution it makes to the economy including its influence on Victoria’s economic recovery post-COVID”.The Victorian government announced that those buying a home for more than $2 million across the state would pay more stamp duty – with a premium duty rate of 6.5 per cent being introduced. The rates will jump from the usual 5.5 per cent on 1 July 2021.

On the flipside, an economist from the Grattan Institute has suggested that the property tax hikes could actually boost economic growth and put an end to development-related corruption. Mr Brendan Coates said, “Mum and Dad investors made up most of the landlords across the country and owned properties worth way less than $1.8 million, so not many investors would be affected by the new land tax”.

Success. It’s a Fletchers thing.

Categories: Uncategorized

Market Update | 15 & 16 May 2021

๐€ ๐œ๐จ๐ฅ๐ ๐ฌ๐ง๐š๐ฉ ๐๐ž๐ฌ๐œ๐ž๐ง๐๐ž๐ ๐จ๐ฏ๐ž๐ซ ๐ฆ๐ฎ๐œ๐ก ๐จ๐Ÿ ๐ญ๐ก๐ž ๐œ๐จ๐ฎ๐ง๐ญ๐ซ๐ฒ ๐จ๐ฏ๐ž๐ซ ๐ญ๐ก๐ž ๐ฐ๐ž๐ž๐ค๐ž๐ง๐, ๐š๐ง๐ ๐Œ๐ž๐ฅ๐›๐จ๐ฎ๐ซ๐ง๐ž ๐ฐ๐š๐ฌ ๐ง๐จ๐ญ ๐ข๐ฆ๐ฆ๐ฎ๐ง๐ž ๐š๐ฌ ๐ฐ๐ข๐ง๐ญ๐ž๐ซ๐ฒ ๐œ๐จ๐ง๐๐ข๐ญ๐ข๐จ๐ง๐ฌ ๐ฌ๐ž๐ญ ๐ข๐ง. ๐ƒ๐ž๐ฌ๐ฉ๐ข๐ญ๐ž ๐ญ๐ก๐ž ๐œ๐ก๐ข๐ฅ๐ฅ๐ฒ ๐ฐ๐ž๐š๐ญ๐ก๐ž๐ซ, ๐š๐ฎ๐œ๐ญ๐ข๐จ๐ง๐ฌ ๐ฐ๐ž๐ซ๐ž ๐ฌ๐ญ๐ข๐ฅ๐ฅ ๐ช๐ฎ๐ข๐ญ๐ž ๐ฐ๐ž๐ฅ๐ฅ ๐š๐ญ๐ญ๐ž๐ง๐๐ž๐, ๐š๐ง๐ ๐ญ๐ก๐ž ๐…๐ฅ๐ž๐ญ๐œ๐ก๐ž๐ซ๐ฌ ๐†๐ซ๐จ๐ฎ๐ฉ ๐š๐œ๐ก๐ข๐ž๐ฏ๐ž๐ ๐š ๐ฌ๐จ๐ฅ๐ข๐ ๐œ๐ฅ๐ž๐š๐ซ๐š๐ง๐œ๐ž ๐ซ๐š๐ญ๐ž ๐จ๐Ÿ ๐Ÿ–๐Ÿ ๐ฉ๐ž๐ซ ๐œ๐ž๐ง๐ญ.

In property news, the Victorian government announced that those buying a home for more than $2 million across the state would pay more stamp duty – with a premium duty rate of 6.5 per cent being introduced. The rates will jump from the usual 5.5 per cent on 1 July 2021.

Further tax hikes will also affect investors, with land tax to rise by 0.25 percentage points for land holdings worth between $1.8 million and $3 million and 0.3 percentage points for holdings above $3 million from the start of 2022.
The Real Estate Institute of Victoria (REIV) has hit out against the changes, saying they would harm the industry and buyers and investors alike. REIV President, Leah Calnan said, “property already accounts for more than 40 per cent of government revenue…there is not much more capacity [for] any one sector to absorb further tax burden”.

Despite the news, a Super Saturday was still in play over the weekend, with over 1,000 auctions called.

Success. It’s a Fletchers thing.

Categories: Uncategorized

Market Update | 8 & 9 May 2021

๐–๐ž ๐ฌ๐ญ๐š๐ซ๐ญ๐ž๐ ๐ญ๐ก๐ž ๐ฐ๐ž๐ž๐ค ๐ฐ๐ข๐ญ๐ก ๐ง๐ž๐ฐ๐ฌ ๐Ÿ๐ซ๐จ๐ฆ ๐ญ๐ก๐ž ๐‘๐ž๐ฌ๐ž๐ซ๐ฏ๐ž ๐๐š๐ง๐ค ๐จ๐Ÿ ๐€๐ฎ๐ฌ๐ญ๐ซ๐š๐ฅ๐ข๐š (๐‘๐๐€) ๐ญ๐ก๐š๐ญ ๐ญ๐ก๐ž ๐จ๐Ÿ๐Ÿ๐ข๐œ๐ข๐š๐ฅ ๐œ๐š๐ฌ๐ก ๐ซ๐š๐ญ๐ž ๐ฐ๐จ๐ฎ๐ฅ๐ ๐›๐ž ๐ค๐ž๐ฉ๐ญ ๐š๐ญ ๐ŸŽ.๐Ÿ%.

RBA Governor, Philip Lowe said that the RBA board did not expect the required economic conditions to increase the cash rate would be met until 2024 at the earliest. The confirmation provides greater certainty for borrowers that mortgage rates will stay low for several years.

The Federal Government’s 2021 budget measures to help Australians into home ownership include first home buyer’s being able to release up to $50,000 as part of voluntary contributions into their superannuation under the First Home Super Saver Scheme (an increase from $30,000). Single parents will also be able to access the Family Home Guarantee, which will allow 10,000 applicants over four years to purchase a home with as little as two per cent deposit. The government will also provide an additional $124.7 million to states and territories to help build their public housing stock.

Over the weekend, the REIV recorded a clearance rate of 81 per cent. The Fletchers Group was thrilled to achieve a similar success rate of 82 per cent for our clients. A number of properties auctioned on Saturday attracted at least 3-4 bidders.

Success. It’s a Fletchers thing.

Categories: Uncategorized

Auction | 9A Ruyton Street, Camberwell

We saw strong, confident bidding at the auction of the quality home at 9A Ruyton Street in Camberwell.

Bidding started at $1.8 million the competition was really between two parties, both determined to secure the home. With direct rear access and breathtaking views across Lynden Park, it’s no wonder!

Congratulations to our vendor Sandro and the successful purchasers, who have bought a quality home in a fantastic neighbourhood.

Categories: Uncategorized

Auction | 28 Guildford Road, Surrey Hills

With a multitude of opportunities on offer to the successful buyer, it’s no surprise that three parties bid strongly to secure the home at 28 Guildford Road in Surrey Hills.

Suitable to live in, renovate or build new in a prized location the property, built in 1967, is a developer’s dream with a planning permit in hand. Bidding began at $2.3 million and the home went on to sell under the hammer – much to our vendor’s delight!

Categories: Uncategorized

Market Update | 1 & 2 May 2021

We enjoyed beautiful Autumn sunshine over the first weekend of May, with another ‘Super Saturday’ in which more than 1,000 auctions were scheduled.

The Real Estate Institute of Victoria [REIV] recorded a clearance rate of 81 percent, with Fletchers results from the day closely aligned with the industry at 80 per cent.

Domain Group data shows that in addition to a soaring median house price in Melbourne, house prices have also risen across 51 suburbs, pushed forward by owner-occupiers looking for larger homes. The Mornington Peninsula has led much of the charge, with suburbs in the sought-after stretch of coastline rising by 30 per cent in just one year. Domain senior research analyst, Dr Nicola Powell, notes that with the change in working habits, the possibility for people to work and live more remotely has opened up the possibility of the Mornington Peninsula as more than just a destination for holiday homes.

Supply is similarly tight in the inner-eastern suburbs of Melbourne, with house prices in the area jumping by 8.5 per cent across the year to March to a $1,615,000 median. “There’s an absorption rate at the moment…there are definitely more buyers than there are sellers, so any homes for sale are just getting snapped up”.

Success. It’s a Fletchers thing.

Categories: Uncategorized