Mercia | Taxation, Business & Finance Advisers

Advertised Stock on the Market
The number of new properties advertised for sale has continued to climb over the most recent week, up by 1.0%. With new advertisements increasing, total property advertisements have been amplified, up by 0.8% over the week. The total number of properties advertised for sale is now at a level 16.1% above the 12 month average and 18.8% higher than at the same time last year. With listings climbing so significantly during late spring, the total number of homes being advertised has returned to similar levels to those recorded during the Global Financial Crisis. In coming weeks we expect that the number of properties advertised for sale will ease as we approach the Christmas / New Year period as buyers tend to be much harder to reach during this period. The real litmus test for the market will be around February or March of next year when activity in the market and listings start rebounding out of the Christmas slowdown. Potentially we will see fewer homes being advertised for sale as some vendors decide to withdraw their property from the market.
Latest National Auction Clearance Rates
Last week the weighted average capital city auction clearance rate fell below 50% for the first time since late 2008. During the week there was a total of 2,348 auctions with weighted average clearance rate of 48.3% across the capital cities (compared with 50.9% last week). The number of auctions last week was the second highest for the year, highlighting that vendors are still showing some confidence in the auction process despite the low rates of clearance. In Melbourne, auction clearance rates fell from 56.2% the previous week to 54.5% last week and in Sydney clearance rates fell to 50.6% from 53.1% the previous week. It seems as if the strong volume of auctions will persist with more than 2,500 capital city auctions currently planned for this week.

Number of Properties Advertised for Rent
The number of new properties advertised for rent has increased by 5.5% over the last week and new rental listings are now 17.1% higher than the 12 month average. With new advertisements increasing, there has also been an increase in total listings which are up by 2.5%. Total rental advertisements have now increased to their highest level in 10 weeks.

Fitzroys agent, Chris Kombi, marketed the shops, which achieved a final selling price at auction of $2.6 million, a price understood to be 30% above the vendor’s reserve.

Situated between Albert Street and Victoria Street, the 420 sqm site has frontage of 13.78 metres to Sydney Road.

Zoned Business 1, the property comprises three two-storey retail and residential buildings with a combined building area of approximately 472 sqm

Current net passing rental from the two shops is $56,885 per annum, giving the sale a yield of approximately 2.18%.

Mr Kombi said that the property was well received by the wider market, with developers and investors showing very keen interest during the marketing campaign.

“The high price achieved illustrates the appetite for well located inner city retail property remains strong despite the number of properties currently on the market in the $1 million to $3 million range,” said Mr Kombi.