Melbourne auction market highly competitive: Q&A with WBP's Greville Pabst

Property ObserverMay 4, 20150 min read

Greville Pabst, CEO and director of WBP Property Group and a judge on The Block Triple Threat, answered some of Property Observer's questions on the state of the current state of the market.

  • How would you describe the auction market?

    The auction market is highly competitive. Today you can expect anywhere between four and six bidders at an auction in Melbourne, particularly in popular inner suburbs. This has meant strong growth for quality properties.

    This year we’ve also seen softening in the western suburbs with both auction volumes and clearance rates dropping slightly across the region. Standout areas for performance are the eastern and south-eastern suburbs.

    Total transaction volumes are down by about 10% when compared with this same time last year, however, as a percentage of overall transactions auctions have increased slightly, accompanied by an increase in clearance rates - Melbourne averaging 76% this year compared with 72% at the same time last year.
  • Is the private treaty market likewise?

    Transaction volumes demonstrate there is greater confidence buying at auction this year, which may prompted by record low interest rates and strong competition among bidders. But, the key take away is that fewer properties are passing in at auction. At this time the clearance rate for auctions is at 76.3% - this time last year it was at 71.6%.
  • What tips would you give home buyers?

    Given current levels of competition it’s important buyers don't make hasty decisions. The key to securing well-performing property is research, and, if needed, getting independent expert advice. 

    It’s also important to consider that whether buying a home or investment property, a sound selection now will have a significant impact on your personal wealth well into the future. Securing a property with high capital growth potential is crucial.
  • What tips would you give investors about the timing of their buying in the 2015 market?

    When asked this question I always recall the proverb, “'The best time to plant a tree is 20 years ago, the second best time is now.”

    In truth, there’s no right or wrong time to buy a property. The best time is when you’re financially ready. 

    The crucial factor with any property investment is the amount of time in the market – that is, unlike with some shares, property growth is realised over time, not overnight. The high cost of transacting property means investment of this kind is typically a long-term commitment. 

Property Observer

Tags:
Auction
Melbourne
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