Some sectors of the market are running hot.
In what I would call the middle suburbs, for example Oakleigh, Burwood, Bentleigh, Moorabbin, Heidelberg, Sunshine, Preston and many others nearby, residential properties are achieving high prices which are being driven by multiple bidders.
A good example of this was an old house on a good block of land (693m2) in Hughesdale which sold on Saturday for $810,500. I acted as a Vendor Advocate for the owner and we were told by 3 Agents interviewed that it would sell for a price in the vicinity of $730,000, a figure that my research indicated was fair. The selling Agent suggested a reserve of $700,000 which I rejected.
As the auction progressed 5 bidders emerged and when the price quickly ran to $760,000 I gave the Auctioneer the nod to put it on the market and 35 bids later the hammer came down at $810,500.
A very high price, but given the competition from the bidders at least 2 of them thought it was good buying. The purchasers, a young couple, said they would rent the property for the next 3 years !!
Money is cheap and there seems to be a lot about, and this with “suburb creep” are major drivers of high prices in the middle suburbs.