This article was first published by SAMANTHA LANDY, Property reporter, News Corp Australia Network on
MELBOURNE’S auction market notched its highest clearance rate of the year last week, as buyers caught spring fever.
Last week’s 830 auctions produced a 79.3 per cent clearance rate, according to CoreLogic — up from 77.4 per cent recorded from Melbourne’s 1060 auctions the week before.
CoreLogic auction market spokesman Kevin Brogan partially attributed last week’s strong clearance rate to the fact auction levels dipped in Melbourne, despite expectations they would rise as the bumper spring selling season kicked off.
“Maybe the demand had been stimulated by the anticipation of the beginning of spring,” Mr Brogan said.
“Melbourne was faced with a drop in the number of auctions, but a boost in the level of buyer interest.”
Mr Brogan said consumer confidence was also reasonably strong, bolstered in part by the low interest rate environment, and housing stock levels were low, forcing more competition between buyers.
The Reserve Bank kept the official cash rate at a historic low 1.5 per cent this week.
The Mornington Peninsula was Melbourne’s strongest auction market last week, with 94.1 per cent of 34 reported auctions resulting in sales, while sellers in Geelong also enjoyed success under the hammer.
The regional city notched an impressive 89.5 per cent clearance rate from 19 reported auctions.
The strength of the auction markets in Melbourne and also Sydney, where a 80.7 per cent of auctions results in sales last week, pushed the nationwide clearance rate to its best level since June last year of 77.1 per cent.
Mr Brogan said a slight rise in the number of Melbourne homes scheduled for auction this week, to 915, could test the city’s sale rate.
“There’s every indication that there’s specific demand to keep the clearance rate in the mid to high 70s,” he said.
Consistent auction hot spot Reservoir again reigns as the nation’s busiest suburb this week, with 17 homes scheduled to go under the hammer.
St Kilda and Glen Waverley are each expected to host 16 auctions.
Among St Kilda’s offerings is 7 Robe St — a 1880s residence just minutes from the beach to be auctioned at 11.30am on Saturday.
Marshall White, Albert Park, agent Daniel McGuire said he anticipated bidding on the three-bedroom house would exceed $2.3 million.
The property was being eyed by families with young children and teenage children “looking for a bit of a seasonal change”, Mr McGuire said: “It’s got a good bit of land, close to the water in a tightly held pocket.”
Soaring ceilings, large rooms, ornate features and timber floors are among the property’s other appeals.