This article is from the Australian Property Journal archive
THE Melbourne residential property auction market has recorded a clearance rate of 62% to mark the start of the spring selling season.
According to the REIV, there were 455 auctions reported last weekend and 284 properties sold totalling $223.1 million, resulting in a clearance rate of 62%. There were 171 properties passed in, of which 112 were on a vendor’s bid.
There were 581 private sales totalling $260.46 million.
REIV CEO Enzo Raimondo said the small improvement recorded appears to have been maintained at the start of the traditional spring selling season.
This is the second week the auction clearance rate has remained above the 60% mark, following a rate of 63% in the previous weekend.
Raimondo said although it is a small improvement, if this continues, it will represent a reversal of the trend of the past two years whereby the clearance rate dropped over spring.
In the same weekend last year, the clearance rate was 55% on 516 auctions. The total value of auction sales was $213.96 million down. In the same weekend in 2010, there were 680 auctions and the clearance rate was 70% whilst total sales were $275.25 million, whilst there were 568 auctions and a clearance rate of 85% in 2009.
In Sydney the REINSW reported a clearance rate was 64% on 430 auctions and 277 sales. There were 153 properties passed in. The total value of auctions sales was $177.64 million.
REINSW CEO Tim McKibbin said this clearance rate figure represents an improvement on the year to date clearance rate of 61%.
“We expect to see the clearance rate improve over the next few months, given that the spring selling season has now arrived,” he added.
In the same weekend last year, there were 353 auctions and 175 sales resulting in a clearance rate of 51.8%. The total value of properties sold was $133.8 million, according to Australian Property Monitors’ Home Price Guide.
Meanwhile there were 575 private sales totalling $277.67 million.
Property Review
