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Cooling Frankston market will bring cheer to buyers

Corporate - Home Page
30 July 2021
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Sellers pocket strong gains from online and on-site auctions

Market conditions are likely to favour buyers in the Frankston region as the supply of properties for sale rises in the second half of the year.

While limited supply and high demand have led to strong growth so far, the market is “beginning to cool and the heat is coming off”, according to Barry Plant Frankston director Thomas Larkin.

“We have noticed the numbers at opens decreasing and expect the market to cool off towards last quarter,” he said.

“More homes will come on the market in the spring and summer, so owners looking to sell should list as soon as they can.”

Frankston suburbs such as Frankston South, Frankston North and Langwarrin have been strong performers in recent years, driven by an influx of first-home buyers, downsizers and investors, both local and from out of the area.

Property prices have also grown because of easy access to beaches, better infrastructure and affordable homes.

Mr Larkin said the strong market in the first half of 2021 was due to the decline in supply by 10-20 per cent.

“The issue is the shortage of properties, and we will sell homes if we have them to sell,” he added.

“The market here has performed well despite disruptions from the lockdowns and restrictions which led to uncertainty for buyers and sellers.”

In an area noted for auctions, Barry Plant Frankston has recorded a 92-93 per cent clearance rate from more than 50 auctions in 2021.

Just before the most recent lockdown, an on-site auction at 27 Picnic Street, Frankston South, drew a 150-strong crowd and a five-bidder contest.

The popular property attracted 200 groups to the inspections, and the five keen buyers pushed the result to $1.385 million, a whopping $400,000 beyond the reserve, Mr Larkin said.

During lockdown, an online auction on July 17 saw 4 Kenmore Court, Frankston, sell for $815,000 from a reserve of $760,000.

The agency also sold 35 Dearing Avenue, Cranbourne, via Zoom on July 24 for $615,000, which gave the sellers $65,000 above their reserve price.

“Most of our properties are being sold by auction,” Mr Larkin said.

“Houses make up 80 per cent of listings, while the rest include townhouses, units and some apartments.”

The winter market has been challenging,” according to Mr Larkin.

“This is mainly because of disruptions and restrictions on inspections and auctions plus buyers having to check-in,” he said.

Corporate - Home Page
30 July 2021
Save Article

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