Melbourne auction market records solid increase in auctions

The strengthening Melbourne weekend home auction market will host another solid increase in auctions this Saturday before a lull in activity for the Anzac Day long weekend holiday next weekend.

There are 749 homes scheduled to go under the hammer on Saturday, which will be up on last weekend’s 702 listings, but well below the 1088 auctioned over the same weekend last year.

Auction activity in Melbourne is set to increase over coming weekends. Seller confidence is on the rise reflecting, the recent robust performance of the local market.

Melbourne’s west will again clearly host the highest number of auctions this weekend with 139, followed by the inner south with 113, the north east with 111, the inner city with 96, the outer east with 90, the inner east with 86, the north with 70 and the south east with 44 auctions.

Reservoir has the highest number of auctions listed this weekend with 17, followed by Glen Waverley with 12, Craigieburn and Richmond each with 11, East Bentleigh and Cheltenham each with 10 and a number of suburbs with nine auctions scheduled including Mount Waverley, Essendon and Port Melbourne.

The market strengthened last weekend, recording its highest result since February.

A heady clearance rate of 76.3 per cent was recorded last Saturday which was well above the 73.8 percent recorded the previous weekend and just below the strong 77.5 percent recorded over the same weekend last year.

Last Saturday’s result was also above the average rate of 75.5 percent recorded over the past 10 weekends.

Although the market continues to track at its strongest since winter last year, solid buyer activity is providing no relief to tenants, with Domain Group reporting rent increases for both houses and units over the past year.

Record levels of new home building are being offset by continuing strong demand for rental accommodation from sidelined first home buyers and high migration.

Reduced activity from local investors since last June is also acting to keep demand well ahead of supply and consequent upward pressure on rents.

Apartments purchased by international investors remaining empty may also be offsetting potential increases in rental stock from the recent inner–city unit boom.