Real Estate

Melbourne auction market enjoys resurgence, with clearance rates rising

Melbourne auction market enjoys resurgence, with clearance rates rising
Written by The ReReport
As seen in the Source link, written by on 2019-07-12 07:00:00

11 Kingsway recently sold within its $1.95-$2.1 million quoted range under the hammer in Armadale — Melbourne’s most successful auction suburb.

Melbourne’s auction clearance rate has recovered dramatically over the past quarter to offer further proof of a market turnaround.

Property data firm CoreLogic found 59.5 per cent of Melbourne’s 7838 auctions held in the three months to June 30 resulted in sales — up from 51.8 per cent from 6375 auctions in the previous quarter.

The city’s clearance rate is now basically back to where it was a year ago, with the June 2018 quarter reflecting a 61.1 per cent figure from 12,330 auctions.

But CoreLogic auction analyst Kevin Brogan said the resurgence was even stronger than this data suggested, with Victoria’s capital producing results of 67.2 per cent, 68.6 per cent and 68.9 per cent over the past three weeks.

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AFL premiership player Adam Schneider booted his Moorabbin townhouse at 3/132 Rowans Rd for $800,000 at auction in May.

“Melbourne has had clearance rates above 60 per cent for six weeks now,” Mr Brogan said.

“The quarterly figure is more modest because at the beginning of the quarter, we hadn’t seen that confidence start up. It became apparent (after May’s) federal election.”

It comes after further CoreLogic data showed Melbourne home values increased 0.2 per cent in June — the first rise since November 2017, following 18 straight months of decline.

Armadale notched Melbourne’s highest clearance rate of the June quarter: 85.7 per cent from 33 auctions.

Moorabbin, Fitzroy, Hawthorn East, Clifton Hill and Caulfield South came in above 80 per cent, while Wollert and Werribee had the worst figures of 28.6 per cent from 23 auctions and 32.3 per cent from 36 respectively.

Clayton South and Hoppers Crossing also dropped below 40 per cent.

66 St David St, Fitzroy soared $260,000 past reserve to a $1.37 million sale price at auction.

CoreLogic senior research analyst Cameron Kusher said “a raft of positive news” had restored confidence in Australia’s property markets.

This included the federal election result canning Labor’s negative gearing and capital gains tax changes, the Coalition’s new income tax cuts, the Reserve Bank’s back-to-back interest rate cuts, and the Australian Prudential Regulation Authority loosening home loan serviceability restrictions.

But Mr Kusher noted the number of homes going under the hammer was “well down”, with vendors “quite selective of what properties they take to auction”.

Just 322 Melbourne homes are on the auction block this week, the second week of school holidays — down from 388 last week.

Pascoe Vale and Reservoir are Melbourne’s busiest auction suburbs, with eight and seven respectively, according to CoreLogic.

Mr Kusher expected volumes to increase come spring, but that would present a new challenge: “Once those volumes push up, will there still be enough demand?” he said.

Jellis Craig Stonnington partner Carla Fetter said limited available housing stock had helped the Armadale auction market retain its strength, along with its “amazing amenity” including public transport links, schools, parks and High St’s shops.

“We’re expecting to see stock levels increase through August and September, and I’d expect October and November will then increase further,” Ms Fetter said.

“The market’s looking in better shape — buyer confidence levels are up, and we’re interacting with a bigger pool of buyers who are saying, ‘where’s all the stock? We want to buy something’.”

Further research from has named blue-chip Albert Park, South Yarra, Hawthorn, Carlton and Malvern the city’s most sought-after suburbs for houses.

The data, based on views per listing on the site over the past six months, also found units were most in demand in Mitcham, Parkdale and Montmorency.

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June 2019 qtr: 59.5% from 7838 auctions

March 2019 qtr: 51.8%, 6375

June 2018 qtr: 61.1%, 12,330

Best clearance rates

Armadale: 85.7% from 33 auctions

Moorabbin: 84%, 27

Fitzroy: 83.3%, 31

Hawthorn East: 81.1%, 40

Clifton Hill: 81%, 26

Caulfield South 80.8%, 36

Collingwood 80%, 24

Kew / South Yarra: both 77.1%, 58

Sydenham / Wheelers Hill: both 75%, 28 / 35

Worst clearance rates

Wollert: 28.6% from 23 auctions

Werribee: 32.3%, 36

Clayton South: 36.7%, 33

Hoppers Crossing: 37.5%, 27

Dandenong: 40%, 26

Broadmeadows: 40.7%, 29

Southbank: 41.9%, 32

Ascot Vale: 42%, 57

Mernda: 42.9%, 30

Brighton East: 43.2%, 49

Source: CoreLogic, June 2019 quarter


For houses

Albert Park

South Yarra




For units





Middle Park

Source:, based on views per property listing over the past six months