Melbourne auction preview: Clearance rate tipped to hold up on Cup holiday weekend

Melbourne’s auction market is tipped to see keen interest from buyers this weekend, even as fewer homes go under the hammer ahead of the Melbourne Cup holiday.

Auction numbers have dropped dramatically following last week’s Super Saturday with just 165 auctions going ahead this weekend, compared to 1400 the week before.

The weekend before the Melbourne Cup is typically a quiet week, which at least partially fuelled last week’s big auction weekend – the busiest so far this year.

AMP Capital chief economist Shane Oliver said the strong demand, which had remained consistent all spring, should keep the clearance rate high this weekend.

“Probably. It is a public holiday so the number of people out looking might be a bit lower but there’s also fewer listings, so those buyers will be concentrated on fewer properties,” he said.

“The reality is the property market in Melbourne has well and truly picked up again.”

Agents were not concerned ahead of Derby Day and said serious buyers would not take the day off just for a punt.

“Sellers worry about the races,” Jellis Craig’s Lee Muddle conceded. “But, dare I say, not everyone likes the races and goes to the races. And it’s close to the Christmas holidays and lots of people aren’t going to be going away.

“And you can wear your frock to the auction and head over to the races after, I don’t think it’s a big deal.”

SOLD - $890,000

503/160 Argyle Street, Fitzroy VIC 3065

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He’s taking 503/160 Argyle Street, Fitzroy, a two-bedroom apartment, to auction on the weekend and he’s quietly confident it will go the distance.

“I think we’ve had about 70 groups through this one in Argyle Street. It’s got a good view of the city, it’s in a great spot,” Mr Muddle said.

In Northcote, another two-bedroom unit’s vendor was braving the quiet weekend, through Nelson Alexander’s Tom Alexiadis.

“For our owner, this was the time frame,” he said. “It was the earliest date we could fit in and we just went with it.”

SOLD - $825,000

2/177 Westgarth Street, Northcote VIC 3070

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Mr Alexiadis said he had several buyers interested in 2/177 Westgarth Street because of the scarcity of villa-styled units and a relatively affordable price guide of $770,000 to $847,000.

“We’ve got a range, first-home buyers and a few investors, they’re starting to come back into the market,” he said.

Dr Oliver said the final clearance rate for last week’s Super Saturday of 74.9 per cent was strong and the proportion of homes sold had been holding up “reasonably well”.

“It’s slowed a little bit from the extreme highs but it’s still very strong,” he said.

“If you’re running about 70 per cent despite a pick-up in supply that tells me demand is quite robust.”