This article is from the Australian Property Journal archive
THE median price of houses sold at auction in Melbourne has risen by 4.4% to $720,000 fueled by buyers’ insatiable appetite.
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The REIV Property Update March quarter shows the median price of houses sold by private sale rose 2%. In the unit and apartment market, the median price achieved at auction was 3.5% higher and 2.6% by private sale.
The solid increases are largely due to the strong buyer activity and competition for properties. Melbourne reported 875 auctions on the weekend, of which 739 sold and 136 were passed in, 74 of those on a vendor’s bid. This represents a clearance rate of 84%.
According to the REIV, there have now been twice as many homes sold by auction as this time in 2009.
According to Australian Property Monitors’ Home Price Guide, this time last year Melbourne had 451 auctions and 327 sales totaling $156.2 million.
Last weekend, Melbourne transacted $548.75 million via auctions and $354.28 million through the private sales market.
Meanwhile Melbourne’s property market has recorded its best house price growth in the March quarter for seven years.
The median price of a house is now $524,500, a 2% lower than the median of $535,000 in the December quarter of 2009.
However demand was no longer evenly spread, as the number of house sales below the half a million price tag have dropped by 28% in correlation with the substantial reductions in financial assistance for first home buyers.
REIV CEO Enzo Raimondo said the market is showing signs of being impacted by the reductions in affordability.
The largest increases in median prices were recorded in Malvern East, Brighton, Frankston South, Footscray West, Ascot Vale, Glen Iris, Kew, Camberwell, Surrey Hills and Blackburn – six of which have a median in excess of a million.
In regional Victoria the City of Greater Geelong recorded an increase of 4.1% to $354,000, the median price of a house dropped in the City of Ballarat by 2.4% to $257,500, and in the City of Greater Bendigo by 1.3% to $263,500.
In other auction news, Sydney’s market shows no signs of slowing either.
According to Australian Property Monitors’ Home Price Guide, there were 450 auctions reported and 236 sales totaling $190.9 million – well above the previous year’s result of 345 auctions and 191 sales totaling $115.9 million.
Sydney’s most expensive transaction was for 3 bedroom house in Birchgrove for $7.40 million and cheapest was a two bedroom unit in Lakemba for $210,000.
In the smaller markets of Adelaide, there were 42 auctions and 13 sales totaling $7.2 million, whilst Brisbane reported 49 auction and six sales totaling $3.8 million.
Australian Property Journal
