Weekend auctions suggest Melbourne’s property market is firmly clawing its way back

Strong auction sales at the weekend suggest Melbourne’s property market is firmly clawing its way back to a healthy position.

Clearance rates were above 73 per cent for the fourth week in a row, showing buyers are hitting auctions with renewed confidence.

Domain economist Trent Wiltshire said the weekend clearance rate of 73.3 per cent also revealed a slight price growth.

“In terms of auction numbers, clearance rates have been strong for a while now,” he said.

“It’s pretty clear the market’s on the rebound with clearance rates around 70 per cent typically in line with modest price growth.”

There were 514 auctions held on Saturday with houses selling for an average of $990,000 and units for an average of $600,000.

One unit in South Morang sat well under the average, selling before auction for a very low $285,000.

Ray White Epping agent Rob Stefanovski said the property at 13/1 Bethany Court, South Morang, needed extensive renovations, but still represented good value.

“I can’t remember the last time I sold something under $300,000,” he said.

“It’s almost unheard of. But, the owner knew it needed a bit of work and priced it quite reasonably on purpose.”

An investor who plans to renovate bought the property.

At the other end of the market, a double-storey house in Toorak sold for $7.05 million – the weekend’s highest auction sale.

Marshall White Stonnington director and auctioneer John Bongiorno said the renovated 1930s house at 19 Sargood Street, Toorak, attracted two bidders, who drove it $400,000 above reserve.

“It’s a property that you could simply bid, buy and move straight into,” he said.

In addition to two interest rate cuts this year, Bongiorno said buyer demand was being driven by a low number of houses for sale. This time last year, there were 298 extra homes going under the hammer.

“I think a lot of buyers are frustrated at the moment given the lack of stock out there and that seemed to be the mood of the market yesterday,” he said.

“A lot of people are expecting more properties to be on the market at this time of year.

“Even with the market improving, it just doesn’t seem to be happening.”

Bidding was competitive at 26 Edward Street, Kew, where a 150-strong crowd was in attendance.

Located in Kew’s historic Sackville Ward, the family home sat on a huge land parcel of 1203 square metres with a  23-metre frontage.

The property was listed for between $4.8 million and $5.2 million, and sold for $5.731 million.

A huge crowd of about 200 people watched a house at 138 Wilson Street, Cheltenham, sell for $1.05 million.

Seven bidders fought for the deed to the five-bedroom house, Ray White Moorabbin’s Kieran Lynch said.

“Stock is short and interest rates are low, which is prompting this rush of activity, but it really was a perfect auction,” he said.

A stylish three-bedroom residence in Port Melbourne sold for a healthy $50,000 above reserve. Location was the big drawcard, with the home positioned close to the beach and Bay Street.

Greg Hocking Holdsworth agent Peter Zervas said several factors influenced the $1.1 million sale at 17/97-101 Cruikshank Street, Port Melbourne.

“We were sort of thinking it would sell for around the $1.05 million range, but it went better probably off the back of some renewed confidence in the marketplace – two interest rate cuts, clearance rates are nudging up and not much stock on the market before the grand final either,” he said.

It was a quiet affair at 120 Rathcown Road, Reservoir, where 15 people watched two bidders compete for the keys. Arthur Torpatzis, of Barry Plant Reservoir, said the property passed in at $850,000.

He said the market was slowly turning around. “It’s like the 1990s, I’ve been around for a while. We’ve been through a bit of a patch, and now it’s improving.”