Melbourne’s outer east a star performer as auction market bounces back
Melbourne’s auction clearance rate has dramatically bounced back, with the outer east proving a star performer during winter.
CoreLogic’s auction quarterly market review shows 73.5 per cent of 7426 properties that went to auction between July and September sold successfully.
It’s a rapid improvement from the June quarter, when only 59.5 per cent of properties sold under the hammer.
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Six of the city’s nine subregions notched clearance rates above 70 per cent for the period.
Melbourne’s outer east was the most impressive, with 83.2 per cent of 541 auctions securing a result.
CoreLogic head of research Tim Lawless called the improvements a “remarkable lift”.
“The clearance rate got as low as 41 per cent last year so this is a dramatic improvement from that point, caused by a range of factors,” Mr Lawless said.
“The amount of stock on the market is still quite low but buyer numbers are rising because of interest rate cuts and the easing of credit restrictions.
There’s a lot more urgency in the market and the fear of missing out on current conditions is starting to creep up on people.”
He said the time taken to sell a property via private sale had reduced from about 60 to 40 days in the quarter, which was another positive sign for the Melbourne market.
In Mulgrave, all but one of 43 recorded properties that went to auction sold.
Other outer east suburbs including Wheelers Hill, Wantirna, Mt Waverley and Oakleigh South had exceptionally strong clearance rates.
Ray White Glen Waverley director Marc Lum said young professionals and international buyers were trying to break into the region.
“Mulgrave is still quite undervalued and we only have about 250 sales there a year, which is part of why it’s doing well,” Mr Lum said.
“We’re at the initial stage of recovery, so there’s a long way to come, but I’m confident the market will continue to improve.”
Hot competition between buyers for the limited stock meant many properties had recently sold well above reserve, he added.
A family home at 34 Shepherd Rd in Glen Waverley sold more than $250,000 above reserve for $1.625 million in September, after five bidders competed for the keys.
Malvern, Kew, Mill Park, Moonee Ponds and Tullamarine were other suburbs where the clearance rate finished well above 80 per cent, the report shows.
The Mornington Peninsula was the worst performing region, with a 54.5 per cent auction sales rate.
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