Melbourne property investors exit as land tax bites and auction clearance rates climb post rate cut | PropTrack

2 weeks ago 10

Melbourne’s auction market rebounds with a 73.2 per cent clearance rate as investor exits reshape the landscape.

Melbourne’s auction market is showing renewed signs of life, with clearance rates rising and confident buyers stepping up — while investors quietly retreat.

PropTrack recorded a 73.2 per cent clearance rate across 594 reported auctions last week, in one of the city’s strongest results this year. Several sales surged well above reserve, as momentum picked up following the Reserve Bank’s recent rate cut.

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Among the week’s headline results was a Mount Waverley home linked to Sooshi Mango’s Joe Salanitri. The property at 7 Midway St sold under the hammer for $1.865m after opening at $1.5m, with seven registered bidders in the mix.

Ray White Judd White director Dexter Prack said the auction drew solid interest, but flagged a growing divide between owner-occupiers and landlords.

“We thought the result might go a touch higher, but overall we’re happy — and so are the owners,” Mr Prack said.

A Mount Waverley home linked to Sooshi Mango’s Joe Salanitri sold for $1.865m under the hammer.

The Glen Iris home at 1 Vincent St was Melbourne’s top sale for the weekend, fetching a strong $4.06m result.

“For investors, the biggest issues right now are land tax and red tape. The land tax has gone through the roof and compliance is becoming a real burden. The rent just isn’t cutting it anymore, so a lot of investors are looking interstate.”

Mr Prack, an REIV member, said Queensland and Western Australia were now attracting Victorian investors chasing better returns and fewer regulatory hurdles.

“It’s never been harder to hold an investment property in Victoria,” he said.

Ray White Judd White director Dexter Prack says land tax and red tape are pushing investors interstate. Picture: Rob Leeson.

This home at 4 Houston Ave, Strathmore achieved $2.23m — one of Melbourne’s strongest weekend results.

Buyers advocate Cate Bakos said this trend was already reshaping the market.

“Investors are being more selective, which means fewer rental properties are available — and that’s adding to the rental crisis,” Ms Bakos said.

“At the same time, we’re seeing real urgency from first-home buyers.

Cate Bakos founder of Cate Bakos Property - for herald sun real estate

Melbourne buyers advocate Cate Bakos said investor retreat is fuelling rental shortages and buyer urgency.

The designer home at 6A Landen Ave, Balwyn North sold under the hammer for $2.15m.

“Even with higher interest rates, many are scared prices will keep rising and they’ll miss their window.”

Top reported results included 1 Vincent St, Glen Iris ($4.06m), 4 Houston Ave, Strathmore ($2.23m), 6A Landen Ave, Balwyn North ($2.15m), 6 Florence St, Glen Waverley ($2.14m), and 5 Beaconsfield Rd, Hawthorn East ($2.12m).