Melbourne records auction clearance rate of 73.7 per cent, the lowest in a month

Melbourne’s auction market kicked off August with a slightly shaky start, recording the lowest auction clearance rate in four weeks.

Melbourne reported a clearance rate of 73.7 per cent on Saturday which was lower than the previous weekend’s 76.2 per cent result and lower than the 77.9 per cent reported over the same weekend last year.

On Saturday 762 homes were scheduled for auction, which was slightly lower than the previous weekend’s 775 auctions but remained well ahead of the 612 listed over the same weekend last year.

Melbourne recorded a median auction price of $820,000 on Saturday which was higher than the $740,000 reported over the previous weekend and 5.5 per cent higher than the $777,500 recorded over the same weekend last year. A total of $339.2 million worth of property was sold at auction at the weekend.

Melbourne’s auction market strengthened over July despite the usual mid-winter distractions and school holidays impacting buyer activity.

Melbourne recorded an overall auction clearance rate of 71.7 per cent over the month which was higher than the 69.5 per cent recorded over the previous month and slightly below the 72.1 per cent recorded over the same month last year. Last year’s winter market was driven by interest rate cuts in May and August which aided in keeping activity in the local market bubbling along. Melbourne’s clearance rate was the highest of all the capitals and well ahead of Sydney’s 64.9 per cent.

Similar to monthly auction clearance rates, mid-winter auction numbers also remained strong despite seasonal effects. Over July 3429 homes were listed for auction which was well ahead of the 2371 listed over July 2016.

Over the first 7 months of this year, 21571 Melbourne homes have been auctioned which is 16.9 per cent higher or 3122 more than the 18,449 listed over the same period last year.

• Related: Click here for Saturday’s auction results
• Related: Click here for the Market Snapshot
• Related: Cottage sells $200,000 above reserve in Fitzroy North

August will typically see higher numbers of auctions as the spring selling season approaches with buyer activity also set to rise. Unlike last year however, the market will lack the stimulus of lower interest rates with the Reserve Bank predictably deciding to leave rates on hold over August – where they will most likely remain for the rest of the year.

Auction numbers will be higher next weekend with over 800 homes set to go under the hammer.

Regional results were reasonably consistent at the weekend with the inner east the only area below 70 per cent typically reflecting a distracted prestige winter market. The northern suburbs, however, continue to roar along producing a remarkable 91.7 per cent clearance rate on Saturday. Next highest was the west at 80.0 per cent followed by the inner city 77.6 per cent, the south east 77.1 per cent, the outer east 75.0 per cent, the north east 73.4 per cent, the inner south 70.3 per cent and the inner east with a clearance rate at 62.0 per cent.

Notable sales reported at the weekend included:

• A three-bedroom home at 708 Nepean Highway, Carrum sold for $3,700,000 by Ray White;
• A five-bedroom home at 25 Gladstone Parade, Elsternwick sold by Biggin and Scott for $3,220,000;
• A three-bedroom home at 20 Sussex Street, Brighton sold for $3,100,000 by Nick Johnstone;
• Another three-bedroom home at 30 Lawrence Street, Brighton sold by Buxton for $3,050,000.

The most expensive property reported sold at auction was a three-bedroom home at 24 Herbert Street, Albert Park sold for $5,000,000 by Hocking Stuart. The most affordable property reported sold at the weekend was a one-bedroom unit at 22/87 Alma Road, St Kilda East sold for $307,000 by Buxton.