This article is from the Australian Property Journal archive
VICTORIA witnessed its highest ever recorded auction clearance rates in February, boosting confidence in the states resilient property market.
According to data from REIV, Victoria recorded an 84.8% clearance rate from more than 3,000 auctions in February, beating the previous record from 2010 of 84.0%.
Incentives and government support measures, such as the First Home Buyers grant, mortgage repayment holidays and low interest rates, in addition to pent up demand after a year of lockdowns and cancelled auctions, the property market has managed to overcome the stress placed on other markets.
17 suburbs recorded a 100% clearance rate last month, including Hawthorn East which cleared 21 auctions, Fitzroy North 17, Ferntree Gully 16, Rowville 16, Brunswick East 15, Sandringham 13, Seaford 13, Collingwood 12, Ashburton 11, Blackburn South 11, Fawkner 11, Wantirna 11 and Boronia, Fairfield, Hillside, Seddon, and St Kilda West all clearing 10 auctions.
While Reservoir, Coburg and Bentleigh East were the top selling auction suburbs in the state. With Reservoir clearing 44 auctions with an 83% clearance rate, Coburg 37 with a 97.4% clearance rate and Bentleigh East 35 with an 87.5% clearance rate.
Moreover, Brunswick cleared 34 auctions, with a 91.9% clearance rate, Preston also 34 with a 87.2% clearance rare, Glen Waverly cleared 33 with a 78.6% clearance rate. Mount Waverly 31, with an 83.8% clearance rate, Craigieburn and Richmond both cleared 30 with a 76.9% clearance rate and Carnegie cleared 29 with an 87.9% clearance rate.
Additionally, 11 suburbs doubled, or more than doubled their auction sales when compared to the February of 2020.
Sunshine North recorded a 333% increase in auction sales compared to the previous corresponding period, Dingley Village 200%, Gladstone Park 200%, Ashwood 125%, Albert Park 117%, Fitzroy North 113%, Doncaster 110% and St Kilda West, Montmorency, Hoppers Crossing, and Templestowe all recording 100% increases.
The Victorian market is not the only one booming, last weekend an unprecedented three capital cities reported clearances above 90%.
Archistar chief economist Dr Andrew Wilson said auction markets last weekend saw boom time clearance rates.
“In an unprecedented result, three capitals recorded auction clearance rates above 90% with buyer activity continuing at record levels.
“Clearance rates are now tracking significantly higher than for the same period last year reflecting the rising impact of coronavirus restrictions on the market over autumn 2020,” he added.
“Auction numbers surged at the weekend following last Saturday’s distractions from long weekend holidays in Melbourne, Adelaide and Canberra. The weekend auction offerings in Sydney, Adelaide and Canberra were also higher than for the same weekend last year with Melbourne and Brisbane listings however lower by comparison.
“Weekend home auction markets continue to steam ahead with unprecedented results recorded in all capitals. Buyers will welcome the usual surge in auction numbers over the pre-Easter Super Saturday to be conducted in a fortnight,” Wilson said.
