MELBOURNE AUCTION SALES HIT ALL-TIME HIGH

Victoria’s housing market has broken another record, with the highest number of auction sales over any six-month period in Melbourne’s history – in the year to 30 June.

A total of just over 13,000 homes were sold at auction over the past six months, compared to about 12,400 over the same period last year.

The big growth in sales was driven by outer Melbourne, with these suburbs seeing a 20 per cent year-on-year increase – to 2,263 auction sales this year (compared to 1,879 in the first half 2014).

REIV CEO Enzo Raimondo said Melbourne’s reputation continued to grow as the auction capital of Australia, with traditionally private-sale suburbs now turning to auctions as buyer numbers trend upwards.

“The growth in auction sales in outer Melbourne has helped push the city’s clearance rate to a high 80 per cent, compared to 73 per cent this time last year,” he said.

Mr Raimondo said the large increase in auction sales in outer Melbourne reflects several factors, including a growing interest from owner occupiers in areas which are still affordable and within commuting distance of the CBD, and a growing number of investors securing homes in these areas.

In other results, four eastern Melbourne suburbs recorded the highest year-on-year increase in the number of auctions – Mount Waverley, Wantirna South, Glen Waverley and Bayswater. Others in the top 10, which covered all of Victoria, were Rosebud and Shepparton.

“Melbourne’s east has seen some of the strongest growth in buyer activity and in median prices in Melbourne this year, leading to many more auctions in this region,” Mr Raimondo said.

Other key statistics included:

  • The 2015 auction capital is Reservoir – for the second successive year;
  • One suburb, Wantirna South, has seen a 100% increase in auctions this year – from 36 for the first six months last year to 72 this year;

(Source: The Real Estate Institute of Victoria, www.reiv.com.au)