Hot summer start for Melbourne's property auction market

The Melbourne home auction market roared into summer on Saturday, recording its highest clearance rate for nearly two months and one of its highest results of the year.

Melbourne reported a strong clearance rate of 79.9 per cent, higher than the 77.5 per cent recorded on the previous weekend’s super Saturday and well ahead of the 65 per cent on the same weekend last year.

However, auction numbers were well down at the weekend compared to the previous weekend’s bumper offering, which may have contributed to the higher clearance rate – with fewer choices for buyers. Fewer than 1200 auctions were listed compared to the previous Saturday’s 1368, which also was well down on the 1447 listed on the same weekend last year. Auction numbers will rise this coming weekend though with well over 1300 listed.

Saturday’s results again were evenly distributed among the suburban regions, with the north-east again at the top of the leaderboard with an 87 per cent clearance rate. The next highest was the recently-resurgent outer east with 83.2 per cent, followed by the north with 83.1 per cent, the west with 82.1 per cent, the inner city with 80.9 per cent, the inner south with 79.6 per cent and the highest number of sales at 129, the inner east with 74.8 per cent and the south-east with 72 per cent.

Notable sales reported at the weekend included:

• a  two-bedroom home at 110 Vale Street, East Melbourne, sold for $4,525,000 by Caine Real Estate;
• a five-bedroom home at 9 Ross Street, Kew, sold for $4.35 million by Marshall White;
• a five-bedroom home at 271 The Boulevard, Ivanhoe East, sold for $3.85 million by Miles Real Estate;
• a four-bedroom home at 20 Victoria Street, Brighton, sold by Buxton for $3,775,000;
• a four-bedroom home at 18 Victoria Street, Brighton, sold by Marshall White for $3.7 million.

The most expensive property reported sold at auction was a three-bedroom home at 49 Berkeley Street, Hawthorn, which sold for $5.1 million by Jellis Craig. The most affordable property reported sold at the weekend was a one-bedroom home at 8/12-18 Margaret Crescent, Braybrook, sold for $268,000 by Sweeney.

For a list of Melbourne auction results click here.

Melbourne recorded a median auction price of $851,000 on Saturday, just below the $856,000 reported the previous weekend but 10.5 per cent higher than the $770,000 over the same weekend last year. A total of $568.3 million was reported sold at auction in Melbourne at the weekend.

The Melbourne’s market continued its strong spring performance with more robust results over November. The city reported an overall monthly clearance rate of 75.9 per cent, just ahead of the 75.6 per cent of the previous month and well up on the 69 per cent in November last year.

Melbourne’s November clearance rate was the third highest on record for that month and the highest November result since 2009.

Last month’s relatively high clearance rate was achieved despite a late surge in spring listings, with average weekend auction numbers climbing from 705 over October to 1045 over November. However, auction numbers remain well below last year’s total, with 4485 fewer auctions over the first 11 months of this year compared to the same period last year – a drop of 12.1 per cent.

Melbourne auction values decreased slightly over November to a median sale price of $850,000 compared to October’s $850,500, but remained ahead of the previous November median of $800,000. 

This week the Reserve Bank of Australia will meet for the final time of the year and for the last time until February. Although the likelihood remains that official rates will stay on hold, recent economic data has been mixed with further rate cuts likely next year unless economic activity improves.

Dr Andrew Wilson is Domain Group chief economist Twitter@DocAndrewWilson join on LinkedIn