Melbourne’s auction clearance rate went below the 60 percent level to 56 percent on Saturday. This was partly due to the Queen birthday’s long weekend. As a result, the number of scheduled auctions was down to 194.
The number of reported auctions was at 145 and the number of properties sold was down to 87 from last weekend’s 463. Total sales recorded was more than $55,659,000 while the median price was pegged at $676,000.
Units have been noted to be selling better during auctions for the first time in five years. The Domain Group reported that since December, apartments have higher clearance rates compared to freestanding houses. In May this year, 63 percent of units were sold under the hammer compared to 55 of houses, the lowest since July 2012. This change in preference is attributed by real estate experts to affordability of units.
The median apartment price in Melbourne has increased to $506,000 during the first quarter of the year. On the other hand, the number of apartments in the works is lower at 6,550 units expected to be completed this 2018 compared to 10,400 in 2017.
The northern suburb of Craigieburn has been leading in auction sales over the past year. Data from the Real Estate Institute of Victoria (REIV) shows this affordable suburb recorded 182 sales from 241 auctions in the year leading to May 31. With a strong clearance rate of 75.5 percent, Craigieburn has overtaken Reservoir which recorded 156 auction sales out of 244 auctions. REIV added the suburb situated 26 kilometers north of the CBD only had 43 sales for the year five years ago. Craigieburn now boasts of modern infrastructure including shopping centers, schools, an aquatic center, tennis center and public transport.
According to the Real Estate Institute of Victoria, some western suburbs have also performed well in the auction market in the past five years. These include Hoppers Crossing, Point Cook, Werribee and Sunbury.
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By Wendy Chamberlain
Copyright 2018 | All Rights Reserved
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With a passion for all things real estate spanning 18 years, Wendy loves that her role as a Buyers Advocate gives her buyers an experienced voice they can trust when it comes to negotiating to purchase something as important as their new home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.wendychamberlain.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.