This weekends auction results did not produce any surprises except perhaps the Albert Park Victorian featured in The Sunday Age which was passed in near a million on a Vendors bid. The opening [genuine] bid was $700,000 and that was the only interest.Unusual for the area.and maybe, just maybe ,the “Quote” was too high.
 
Once again expectations were exceeded in Camberwell.Not surprising because of the suburbs proximity to the City and probably more importantly, the access to private schools.                                       
 
It will be interesting to read the release of median prices next week.These figures give a false impression of market conditions because “Median”means the difference between the hightest and the lowest sale prices in any given suburb for the quarter.It is not an average.                 
 
The commercial market.                                 
Listed Property Trusts[LPT’s] are taking beating and for a very good reason.Investors money is used as “equity” in the purchase of large commercial,industrial and retail assets and then,based on a valuation at the time of purchase, significantly geared.They then rely on regular re-valuations to pay dividends. As soon as there is a downturn in the market, valuations do not come up to expectations,dividends are not maintained at initial levels, unitholders get anxious and sell just to get out which has a serious impact on the value of holdings and unit prices.
 
The pattern will continue because yields are diminishing across all sectors of the non residential market.

By Brian  from Buyer’s Advocates Melbourne

Tags: auction results

This entry was posted on Sunday, July 20th, 2008 at 12:30 pm and is filed under Property Market News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.