A clearance rate is only as good as the information that is put into it.

With the Melbourne auction clearance rate sitting consistently at 78% we are seeing a high clearance rate which should be a positive sign, although it’s when you boil down that the full picture appears.

Scheduled Auctions
1270
Reported Auctions
664
Total Sold
515
Total Passed In
149
Clearance Rate
78%

This shows that a lot of properties aren’t making it to auction, the question is always why and the initial thought is it must be a failed campaign and the auction has been cancelled, but that isn’t always the answer.

Now more than ever we are seeing the good agents inform their clients of the current market and make sure they understand who is looking at their property. In a lot of circumstances there is one standout buyer and a good agent will be able to manage the process to get an offer from this buyer to sell the property early.

Sometimes running a property through to auction will only help the buyer see they have limited competition so selling early to them allows the vendor some control.

Over the weekend we saw an announcement that the Labor State Government has decided to increase high density living in certain suburbs of Melbourne.

Whilst we do have a shortage of housing it is important to build the type of housing that people want to buy and live in.

There is not point in building dog box apartments when people need family homes.

I have talked previously about how we are building the wrong type of apartments as the current crop don’t offer enough internal space to live but merely exist I fear these will be the same, built for profit not living and not always in the most appropriate areas.

I appreciate that we need to have more homes across the board but by forcibly changing the character of an area purely to increase housing is not the answer, secondly you need to look at each area and adapt to how people want to live in that area.

I think that by ramming these changes through council with no oversight it will only create unloved and unwanted properties that will be under utilised and therefore become derelict.

Some of the issues with High Density living are below:

1. Overcrowding: High-density development can lead to overcrowding, straining local infrastructure.

2. Loss of character: Over-development can alter neighbourhood character and charm.

3. Parking and traffic: Increased density can exacerbate parking and traffic issues.

4. Affordability limitations: While apartments may be more affordable, they often come with higher costs (e.g., strata fees).

5. Social isolation: High-density living can lead to social isolation if not designed with community spaces.

Additional considerations:

1. Zoning regulations: Normally Melbourne’s zoning laws and height restrictions may limit high-density development but we have seen the State Government push to bypass this.

2. Infrastructure support: Adequate infrastructure (e.g., public transport, schools, healthcare) is crucial for supporting high-density populations.

3. Community engagement: Residents’ concerns and feedback should be considered in development plans.

4. Affordable housing targets: Including affordable housing units within developments can help address the shortage.

5. Regional growth: Addressing the housing shortage requires a regional approach, considering growth areas outside Melbourne’s CBD.

Melbourne’s initiatives:

1. Plan Melbourne 2017-2050: Aims to create a more compact and connected city.

2. Melbourne’s Apartment Design Guidelines: Encourages well-designed, liveable apartments.

3. Affordable Housing Strategy: Targets 10% of new developments for affordable housing.

4. Urban Renewal Authority: Facilitates redevelopment of underutilized areas. In conclusion, high-density apartment buildings can contribute to addressing Melbourne’s housing shortage, but a comprehensive approach considering multiple factors, alternative solutions, and community engagement is necessary for effective and sustainable results.

If you have concerns about any of these issues raised please feel free to contact Rodney Samuels Consulting and we will assist in anyway possible or put you in touch with those that can.