This article was originally published by ANDREW WILSON via domain.com.au on OCT 15, 2017
Melbourne’s mid-spring auction market continues to produce robust results for sellers in most areas despite the usual rising tide of auction listings as the season progresses.
Melbourne reported a strong clearance rate of 76 per cent on Saturday which was higher than the 74.3 per cent recorded over the previous weekend but below the 79 per cent reported over the same weekend last year.
Weekend auction clearance rates in Melbourne have averaged 75.6 per cent over spring so far and is clearly currently the best capital city market performance and well ahead Sydney where clearance rates have averaged just 68.6 per cent over the same period.
Auctions numbers were up again at the weekend with 1035 homes listed to go under the hammer which was well ahead of the 935 auctioned the previous weekend and also ahead of the 993 listed over the same weekend last year.
Melbourne recorded a median auction price of $844,500 on Saturday which was higher than the $750,000 reported over the previous weekend but 1.8 per cent lower than the $860,000 recorded over the same weekend last year. A total of $499 million worth of property was reported sold at auction in Melbourne at the weekend.
Consistently solid auction clearance rates in Melbourne have predictably translated into more house price growth although the rate of growth has declined sharply. Domain reports that the Melbourne median house price increased by 1.3 per cent over the September quarter to a new record high of $880,902.
The September quarter result however was the lowest rate of growth recorded by the local market since the September quarter 2014 and well below the 4.1 per cent reported over the previous June quarter. Despite the lower rate of growth, Melbourne median has nonetheless increased by a strong 13.9 per cent over the past year.
Melbourne unit prices increased at a faster rate than houses with the median up strongly by 3.4 per cent over the September quarter to $506,334, and an increase of 11.4 per cent over the past year.
The underlying drivers of the Melbourne housing market will continue to push growth with strong migration, a solid local economy and an underlying shortage of homes. Newly introduced stamp duty concessions for local first home buyers have also fuelled increased demand from this group.
Recent action by policymakers to tighten lending conditions for residential investors however has acted to dampen housing demand and contributed to a decline in the rate of house price growth.
A number of Melbourne’s suburban regions recorded exceptionally strong results at the weekend led once again by the booming south east that recorded a clearance rate of 86.7 per cent. Not far behind was the inner city with 85.5 per cent, followed by the north, 80.3 per cent; the outer east, 80.2 per cent; the inner south, 79 per cent; the west, 77.3 per cent; the north east, 72.9 per cent; and the inner east, well behind the pack with a clearance rate of just 60.2 per cent.
Notable sales reported at the weekend included:
The most expensive property reported sold at auction was a four-bedroom home at 307 Beaconsfield Parade, Middle Park sold for $6.37 million by Greg Hocking. The most affordable property reported sold at the weekend was a one-bedroom unit at 120/6 Acacia Place, Abbotsford sold for $313,000 by Biggin & Scott.