Melbourne auction market storming into spring

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85 Rathmines Rd, Hawthorn East shattered its reserve by $471,000.

Melbourne’s auction market is storming into the spring selling season, with the latest clearance rate tipping over 80 per cent for the first time since early 2017.

Experts say buyers have been coming back in force since the federal election was decided, with back-to-back interest rate cuts and low volumes of available housing stock fuelling hot competition.

Of 414 auction results collected by CoreLogic for the past week, 81.4 per cent were sales.

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85 Rathmines Rd has seen better days.

The house’s interior featured cracks, but also period flourishes waiting to be restored to their former glory.

CoreLogic auction analyst Kevin Brogan said the last time Melbourne saw a figure like this was February 2017, when 1635 auctions netted an 81 per cent success rate.

The property data firm will release a finalised number on Thursday capturing more results.

Last week’s final 76.2 per cent sale rate, from 588 auctions, was officially a two-year high and the third consecutive week where the figure exceeded 70 per cent.

This marked a dramatic improvement from spring last year, when Melbourne’s clearance rate languished below 50 per cent for nine straight weeks.

“If you’re looking at selling your property, … you’ll now be seeing strong results that might encourage you,” Mr Brogan said.

Perry Property Advocates managing director Adam Perry said the mammoth $2.351 million sale of a “blank canvas” in Hawthorn East was “testament to the fact buyers are out in force and ready to buy at auction”.

Six bidders fought over 85 Rathmines Rd.

Mr Perry said six buyers placed 63 bids to push the boom-style Victorian, featuring a dated interior with cracked walls, $471,000 past reserve.

Mr Perry said 85 Rathmines Rd’s renovation potential and “ideal location” in the prized Harcourt Estate precinct drove the strong sale.

The result also “demonstrated the need for more property supply as the spring market approaches”.

“This may very well give people considering selling their homes food for thought,” he said.

In Collingwood, seven bidders ranging from “chippies, merchant bankers to an AFL footballer” battled for another renovator’s delight at 96 Sackville St, Jellis Craig’s Michael Amarant said.

96 Sackville St, Collingwood sold for almost $100,000 above reserve.

96 Sackville St still had a galley-style kitchen.

A young man paid $981,000 for the “very original terrace”, well above its $890,000 reserve.

“There’s confidence — people aren’t waiting to buy anymore,” Mr Amarant said.

“We’re expecting a lift in supply in spring, but not a big one. It’s certainly helping keep things competitive at auction.”

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