Melbourne auction market: bidders back in droves across the city
Melbourne’s auction clearance rate soared into the 70s last week, as bidders came out in force to drive strong sales on all sides of the city.
On the weekend, seven parties battled for a family house in Templestowe, six competed for a similar home in Mill Park, and five pushed an Albert Park cottage “on a very small piece of dirt” $140,000 past reserve.
Experts say there are simply not enough homes going under the hammer to meet demand renewed by factors including the federal election and back-to-back interest rate cuts.
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Preliminary CoreLogic figures show 74 per cent of a reported 458 Melbourne auctions resulted in sales last week.
A total of 546 homes went under the hammer, and a finalised figure capturing more results will be released on Thursday.
But for now, CoreLogic auction analyst Kevin Brogan said the result was the highest clearance rate recorded in Victoria’s capital since the 78.1 per cent result from an (albeit abnormally low) 105 auctions the week ending January 28, 2018.
This week’s rate was up from 67.5 per cent from 410 auctions last week, and 58.5 per cent from 802 auctions on the corresponding week last year.
Advantage Property Consulting director Frank Valentic saw groups of five bidders compete at three different auctions on Saturday.
He said that was “a very big change from late last year, when we were seeing zero to one bidders at most auctions”.
“The clearance rate got as low as 40 per cent then, and now that’s obviously improved dramatically,” the buyer’s advocate said.
Two of those auctions were two-bedroom apartments: a warehouse-style pad at 29/8 Hull St, Richmond, that fetched $584,000 against a $550,000 reserve, and a large unit at 2/1495 Malvern Rd, Glen Iris, which just surpassed its $500,000-$550,000 quoted range to reach $551,000.
First-home buyers won both.
The third was a renovated two-bedroom Victorian on a modest 115sq m block at 81 Little Page St, which Mr Valentic said was popular despite having no off-street parking.
Selling agent Scott Belsey of Hocking Stuart Albert Park said the house sold for $1.51 million against a $1.37 million reserve to a Yarraville woman.
Mr Belsey said the vendors bought the pad as a “raw product” in 2012, for $670,000, and carried out “a top-end reno”.
In Templestowe, seven bidders pushed a four-bedroom house at 2 Hathaway Close well past its $1.15-$1.25 million quoted range to $1.43 million, National Property Buyers director Antony Bucello said.
Mr Bucello partially attributed the stellar result to the fact there “simply isn’t enough stock” on the Melbourne auction market.
”This will drive prices north again, as demand is starting to exceed supply by quite a margin,” he said.
In Mill Park, 15 parties were registered to bid for a three-bedroom house at 11 Gloaming Court. But just six got the chance as the sale price flew past a $680,000 reserve to $727,000.
Ray White Mill Park selling agent Marco Riggio said the home was in a popular pocket on the Bundoora border, close to a RMIT campus and the Uni Hill Factory Outlets.
The vendor had held the property since 1987, when it changed hands for just $88,000.
Six bidders also put their hands up for a two-bedroom unit at 3/16 Stanhope St, Mont Albert, sending it well past its $700,000-$770,000 advertised range to a $904,000 sale price, Statewide Property Advocacy’s Brian Capp said.
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