Real Estate June Sales Results Beaumaris
Walking through the streets of Beaumaris this month of June, feedback from most of you is the belief that the property market is declining and property prices are falling. It all sounds so doom and gloom, but is this really the case.
With the prospect of further interest rate rises heading for 9.4% by 2013 (BIS Shrapnel June 27 2011) and a lot of stock growing in the area (there’s about 100 properties still for sale for Beaumaris) I can understand the sentiment.
The month began slowly with just a couple of auctions. 45 Oak St sold for $1.1M prior to auction and 1/52 Cloris Ave selling on auction day for $630K, within its quoted range. With the Queen’s Birthday weekend following, there were no auctions, just private sales during the month including:
20 Rosemary Road (606 sqm land) sold for $810K, under the quoted range
8 Gramatan Ave quoted at $950K to $1,050M sold for $965K
12 Coral Ave quoted at $900K to $950K sold for $925K
At the end of the day……….it’s taking longer to sell our properties, whether it be a private sale or auction, they are still selling. Land price may be flat but it is not always declining, eg. 3A Bellaire sold at $1,020M 3 weeks after auction. This price was typical of land value for an average size block in the surrounding area over the last year.
Beaumaris Beach Road
BEAUMARIS BEACH ROAD
Other slow moving properties have moved from passing in on auction last month to now under contract and selling; 26 Bonanza Rd and 7 Coreen Ave.
Where prices have declined this has been mostly in part because of the quality standard of the property. Where if the property is of a good quality (has a wow factor, or is in a great position) it is still selling well, and within a normal campaign period. It’s those that are 2nd or 3rd class properties where buyers are not prepared to part with their cash to fix them or are not prepared to take the risk at the moment. They simply don’t see value in paying the extra money that the vendors are asking.
The month ended with 3 auctions, 2 passing in: 4/12 Towers St on a vendor bid of $490K and 125 Pellatt St passing in on $941K and 425A Beach Rd sold for $1,205M.