Melbourne winter auctions up 24 per cent on last year

Melbourne’s auction market has ended winter with another healthy clearance rate for sellers with a vibrant spring selling season anticipated in what has emerged as the nation’s strongest housing market.

Melbourne reported a solid clearance rate of 74.8 per cent at the weekend, which was lower than the previous weekend’s season-high 78.3 per cent result and also lower than the 77.9 per cent reported over the same weekend last year.

A surge in listings may have contributed to this weekend’s lower clearance rate, providing sellers with more competition and buyers with more choice. A total of 936 homes were listed for auction in Melbourne at the weekend, well head of the 821 auctioned the previous weekend and also higher than the 878 auctioned over the same weekend last year. Auction numbers, however, will be down next weekend with about 850 homes set to go under the hammer.

Melbourne recorded a median auction price of $880,000 on Saturday, similar to the $882,150 reported over the previous weekend but 7 per cent higher than the $822,500 recorded over the same weekend last year. A total of $467.2 million worth of property was reported sold at auction in Melbourne at the weekend.

The city’s auction market has ended with clearance rates still positive for sellers despite auction numbers remaining significantly higher than recorded over last winter.

Melbourne weekend auction clearance rates averaged 75.1 per cent over winter, lower than the 78.1 per cent averaged over autumn and the same rate as recorded over last winter.

During winter 10,046 weekend auctions were held, which was lower than the 11,804 auctioned over autumn but well ahead of the 8073, or 24.4 per cent higher, that were held last winter.

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• Related: Click here for Saturday’s auction results
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Although Melbourne auction numbers will continue to rise through spring and likely remain ahead of last year’s totals, weekend clearance rates are set to remain above 70 per cent despite the waning impact of the lower interest rate energy driven by last year’s rate cuts.

Higher numbers of first home buyers and investors, and surging migration will keep demand ahead of supply with Melbourne still offering affordability advantages particularly compared to the high-priced Sydney market.

Melbourne sellers overall will continue to hold the upper hand with outer suburban markets doing best but all areas maintaining the positive results of winter.

Melbourne’s outer eastern suburbs took over the top spot for regional results at the weekend, although all areas recorded healthy results for most sellers in what was another remarkably consistent regional performance by the Melbourne market.

The strength of the outer-suburban, lower-priced markets may reflect increased activity by first home buyers keen to take advantage of the recent cuts to stamp duty for this group.    

The south-east produced a strong result at the weekend with an 85.3 per cent clearance rate, with the outer east also strong at 81.5 per cent. Next highest was the inner city with 77.8 per cent followed by the west 77.3 per cent, the north-east 73.2 per cent, the inner east 71.7 per cent, the north down this weekend to 71.4 per cent and  the inner south also down to 70.7 per cent.

Notable sales reported at the weekend included:

• A four-bedroom home at 16 Bailey Avenue, Armadale, sold for $4.06 million by Marshall White,
• A three-bedroom home at 2 Thanet Street, Malvern, sold by Kay and Burton for  $3,610,000,
• Another-three bedroom home at 88 The Esplanade, Maribyrnong, sold for $3,400,000 by Jas Stephens Real Estate,
• A four-bedroom home at 6 Carson Street, Kew, sold for $3.3 million by Jellis Craig
• And another four-bedroom home at 707 Toorak Road, Kooyong, sold for $3,080,000 also by Jellis Craig.

The most expensive property reported sold at auction was a five-bedroom home at 1 Anthony Street, Glen Iris, sold for $5,770,000 by Marshall White. The most affordable property reported sold at the weekend was a one-bedroom unit at 1/202A Pascoe Vale Road, Essendon, sold for $277,000 by Nelson Alexander.