Melbourne Auction Results 5th October 2015

In this week’s property market wrap we look at the latest REIV data and find out which bayside suburb in Victoria was the strongest rental growth performer for family homes and apartments. We also share an interesting report highlighting five reasons the Turnbull government shouldn’t let us use our superannuation to buy real estate.

There were 44 auctions reported to the REIV this weekend, with 28 selling and 16 being passed in, 10 of those on a vendor bid.

The top three auction sales suburbs in the month of September were Reservoir (55 sales), South Yarra (46 sales) and Richmond (42 sales).

Auction Numbers Down AFL Grand Final Weekend

Image Source: heraldsun.com.au

Rental Growth In Melbourne’s Bayside

Which suburb in Melbourne’s bayside was the strongest rental growth performer?
Demand for larger rental properties is pushing up the weekly median rental for three-bedroom homes in Melbourne’s Bayside. Enzo Raimondo from REIV reports on median weekly rental for family homes and apartments and reveals the most sought after suburbs.

Five Reasons The Turnbull Government Shouldn’t Let Us Spend Super On A Home

Martin North of Digital Finance Analytics shares this report from The Conversation

“Allowing first homebuyers to cash out their super to buy a home is a seductive idea with a long history. Like the nine-headed Hydra, which replaced each severed head with two more, each time the idea is cut down it seems to return even stronger”.

Both sides of federal politics took proposals to the 1993 election to let Australians draw down their super. After re-election, then Prime Minister Paul Keating scrapped it amid widespread criticism. Former Treasurer Joe Hockey raised the idea again in March and was roundly criticised by academics and the media. This month the Committee for Economic Development of Australia (CEDA) has again resurrected the idea.

House prices have skyrocketed again over the past two years, particularly in Sydney. So politicians are attracted to any policy that appears to help first homebuyers to build a deposit. Unlike the various first homebuyers’ grants that cost billions each year, letting first homebuyers cash out their super would not hurt the budget bottom line – at least, not in the short term. But the change would worsen housing affordability, leave many people with less to retire on, and cost taxpayers in the long run. These five reasons explain why it is a bad idea and look at what the federal government should do to make housing more affordable.

Top 5 Houses

1. 38 Edro Avenue, Brighton East $3,910,000
2. 129 Park Drive, Parkville $3,520,000
3. 36 Sarah Crescent, Templestowe $3,130,000
4. 7 Stewart Street, Brighton $3,020,000
5. 4 Wood Street, Fitzroy $2,875,000

Top 5 Bargain Houses

1. 2 Amanda Court, Melton $235,000
2. 9 Dunvegan Drive, Kurunjang $285,000
3. 30 Frawley Street, Frankston $327,000
4. 4 Roche Court, Epping $330,000
5. 1 Torana Court, Doveton $335,000

Top 5 Apartments

1. 55/400 Victoria Parade, East Melbourne $1,760,000
2. 13/156 Beaconsfield Parade, Albert Park $1,600,000
3. 68 Little Page Street, Albert Park $1,595,000
4. 25A Salisbury Street, Moonee Ponds $1,375,000
5. 1/6 Victoria Street, Brighton $1,350,000

Source: REIV