This article is from the Australian Property Journal archive
MELBOURNE’S residential property auction market has become accustomed to high clearance rate.
Last Saturday was no different. Following a short break in the previous long weekend, there were 673 auctions last weekend and 562 sales representing a clearance rate of 83%, according to the REIV.
There were 112 homes passed in, of which 70 were passed in on a vendors bid. The total value of properties sold was $403.83 million. This is substantially better than this weekend last year when there were 418 auctions and a clearance rate of 74%.
CEO Enzo Raimondo said it appears a high clearance rate in excess of 80% has become the natural state for residential auction market this year.
“As none of the fundamental drivers of the market appear to be changing it is likely to remain this way for a few months yet, that means more strong competition, high prices and lack of supply. The release of the ABS dwelling commencement figures during the week will provide an indication if there will be an improvement in the medium term,” he added.
There are around 2000 auctions scheduled over the next two weekends.
The private sales market recorded 651 transactions totaling $305.12 million.
Over the next two weekend, around 2000 properties are forecast to go under the hammer.
Australian Property Journal
