Melbourne's auction clearance rate hits 81.2 per cent, highest since April 2017
Melbourne’s clearance rates spiked at a huge 81.2 per cent at the weekend, the highest rate since April 2017.
The rate puts the market back to levels achieved in the 2016 and 2017 boom period, but with much less for sale.
Domain economist Trent Wiltshire said the surge in auction sales had surprised many.
“Undoubtedly, more buyers are out there and the increase in clearance rates has jumped faster than most people expected,” he said.
Melbourne’s clearance rates have gradually risen in the past two months, but this weekend’s result was one out of the box. Last week’s clearance rates were 70.2 per cent.
“It’s a very strong result and it continues the trends of clearance rates rising over the last couple of months,” Mr Wiltshire said.
More than 150 people watched a three-bedroom family home sell for $940,000 — $100,000 over reserve — at 31 Rodney Avenue, Coburg North.
Barry Plant agent Chris Kavanagh said smart renovations to the home plus a serious shortage of houses for sale pushed the price along.
“We had six bidders and 135 inspections over a four-week period,” Kavanagh said.
“It was a very well-presented home, nicely renovated with nice warm feel throughout, on a large allotment of 622 square metres.
“We are all still finding there is very short supply in the market, yet buyers have returned in high numbers over the last eight to 10 weeks.
“It was very well attended and reminded me a lot of the very hot markets of 2016 and 2017, and it looks like if supply doesn’t increase, that’s where we’re headed back to as far as the market is concerned.”
The title of highest auction sale at the weekend went to 24 Hazeldine Road, Glen Iris, which sold for $3.21 million.
Marshall White Stonnington director and auctioneer John Bongiorno said the auction of the five-bedroom house was fought out between five bidders.
“It kicked it off at $2.7 million, on the market at $3 million and sold for $3.21 [million] – $210,000 over reserve,” he said.
“It was pretty much a perfect family home, just a touch over six years old, it was as-new so the buyers who bid for it really didn’t have to spend a penny or lift a finger to do anything to it.
“The layout was probably one of the best designs I’ve seen in quite some time.
“It just had things that were right, like the laundry upstairs near the bedrooms, storage area for the kids school bags when they come in from the garage, a study around the back of the kitchen and a second study.”
Bongiorno said the weekend’s auction results were among the strongest he had seen in years.
“The depth of bidders at auction is quite incredible,” he said.
“We’re having four or five bidders at multiple auctions because lending’s eased up, interest rates are where they are and we’re fundamentally into the spring market so buyers are keen to get into the market.
“The one thing that really isn’t in the market still is the volume of sellers, so the properties that are on the market are doing exceptionally well.”
The weekend’s most affordable auction sale was at 7/176 St Georges Road, Northcote, where a one-bedroom unit sold for its reserve price of $300,000.
Nelson Alexander Northcote agent Denise Kriaris said the sale represented terrific value for an inner-city location.
“You could just paint and get new floorboards to make it a great little apartment,” she said.
“You’ve got everything there like the tram and it’s close to North Fitzroy, so it’s a great spot.”
A three-bedroom brick veneer home at 77 Stephens Street, Burwood, on 772 square metres of land drew lots of attention from investors and developers.
Buxton Camberwell agent Nicole Lismore said the property sold for $1.31 million – a healthy $110,000 margin over reserve.
“Investors, developers and land bankers are starting to re-enter the marketplace which is great,” she said.
“After the election there’s been a lot of momentum, and I think strong momentum will continue because there’s not going to be as much on the market in comparison to the last couple of springs.”
A pretty weatherboard at 11 Parkview Drive, Ferntree Gully, drew a crowd of about 100 people and more than 75 bids. The three-bedroom house sold for $706,000 – $81,000 over reserve.
Ray White Ferntree Gully director Ben Thomas said a record number of people inspected the property before auction with a lot of interest from first-home buyers.
“In some areas, stock levels are down 45 per cent on what they usually are so when properties hit the market, the competition for them is remarkable,” Thomas said.
“I had around 150 groups through 11 Parkview Drive, and that’s easily the most I’ve ever had in my career coming through a property.”
And at 85 Rathmines Road, Hawthorn East, a grand Victorian-era home went under the hammer for $2.351 million. Six bidders competed for the keys and the right to update the home, which has good bones but needs substantial structural renovations.
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