Mornington Peninsula tops Melbourne for clearance rates
An area not known for auctions has topscored with the highest clearance rates in Melbourne.
The Mornington Peninsula recorded an 83.3 per cent clearance from 25 auctions for the week ending May 26, following a 75 per cent clearance from 13 auctions two weeks earlier, CoreLogic data shows.
It had the peninsula easily outperforming other areas, with Melbourne’s overall clearance at 62.9 per cent for the week of May 26 and 56.8 per cent for the week ending May 12.
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The peninsula holds few auctions each week compared to the hundreds in the inner and inner south Melbourne suburbs, but has performed well.
Local agents attributed the high clearance rates on the peninsula to rising buyer demand coupled with limited supply of auction listings.
“We sold three from five auctions on May 25 and the two that were passed in were within 5 per cent of the selling prices,” agency director Nicholas Lynch said.
“Buyers are more confident the market here will lift again and demand is high.”
Listing agent Anna Bassett noted auction numbers were slowly rising in the region, where most listings were for standard private or expression of interest sale.
There are only nine auctions scheduled for the weekend of June 1-2 around the peninsula, with agents saying the overall market there slows in the winter months before returning strongly in spring and summer.
Over the past 18 months, auction numbers in peninsula suburbs had also declined due to softer market conditions, local agents said.
But Nicholas Lynch Real Estate had been advising more vendors recently to list for auction because growing demand was seeing more competition and stronger prices, Mr Lynch said.
The agency sold two Mt Eliza properties at auction on May 25, with 21A Glen Shian Lane fetching $1.79 million and 16 Woodlyn Close selling for $864,000.
The same day, OBrien Real Estate Mornington had multiple bidders and buyers at all three auctions it held, with 15 Arthurs Seat Rd, Red Hill its top result sale at $1.55 million.
“There is more confidence among buyers and 60 per cent of our listings go to auction,” OBrien Mornington agent Andrew Jones said.
“We see inspection numbers have also lifted and there are more buyers around.”
Mr Jones noted that not all properties were suited for auction and only those that were unique and sought-after would do well at auctions.
Once the agency explained the benefits of auctions, more vendors were open to this selling method, Mr Jones added.
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