This article was first published on Kirsten Robb, Data Journalist for www.domain.com.au
Featured Image: Huss Saad of Village Real estate says Melbourne has well and truly woken up to the west. Photo: Luis Ascui
Every one of the 23 sellers who put a property under the hammer in Caulfield South during May had reason to pop the champagne. Every auction in the suburb ended with the slap of a sold sticker across the sales board.
The remarkable statistics show the rising strength of the inner south, as Melbourne’s east continues to take a back seat in the auction market, while other parts of the city shine.
Inner suburbs in the south, west and north have dominated the list of suburbs with 100 per cent clearance rates last month.
“There are early signs that the regional markets that carried Melbourne through the last three years — the inner east and outer east — have been the under performers over the last year, while we are seeing the rise and rise of south east, north and west,” Domain Group chief economist Andrew Wilson said.
Gary Peer, director Gary Peer Real Estate, said Caulfield South was one of the strongest auction markets in Melbourne.
“It’s a great statistic,” Mr Peer said of the bulletproof 23 out of 23 strike rate. “I’d say it wouldn’t be replicated in too many areas around Melbourne.”
He said Caulfield South was transitioning from being a daggy cousin into becoming like some of its trendy neighbours, with cafes and restaurants popping up around the area. The suburb was attracting younger buyers and families from both the St Kilda area and the Bentleigh area who were looking at a $1 million price range, he said.
There were 18 auctions held in Yarraville over the four Saturdays in May and all ended with the keys exchanging hands.
Village Real Estate director Huss Saad said a shortage of properties in Yarraville and a high demand for the inner west had led to the strong success rate of auctions.
“I still feel Yarraville is undervalued compared to other suburbs the same distance from the city, in the east but also in the north,” Mr Saad said.
“Ten years ago people were forced to move out this way, but then they discovered what the west was really like and now people are choosing to live here.”
Brighton’s unit market posted a significant result through May, with 14 of the 14 units auctioned in the month selling under the hammer.
Hodges Jason Gill said there were three main buyer types interested in the area: local downsizers or downsizers from across Melbourne attracted to the beach lifestyle; lock-up-and leave buyers who had secondary properties along the Mornington Peninsula; and investors buying from their self managed super funds or looking for an alternative to the sharemarket.
He said the competition between the three segments led him to advise the auction method to the majority of clients.
“One thing I try to have my vendors understand is that some of the outstanding results in the area have been achieved through competition and bidding,” Mr Gill said.
“They would never have been achieved through private sale, so why wouldn’t you give yourself a chance to have a dream result?”