Calder Freeway provides drive for growth: RP Data's Melbourne auction preview

The Calder Freeway, which makes its way through central Victoria’s has contributed to a increase in capital growth and compared to other regional centres towns along this transit corridor are showing the strong appreciation.

For those unfamiliar with Victoria the Calder Freeway is the main road between Melbourne and Bendigo and links Macedon, Kyneton, Gisborne, Woodend and Castlemaine. There is also a matching rail service and both have been upgraded over the past decade.

House values in these areas have outpaced Melbourne, Ballarat and Geelong over the past five years.

The best growth was recorded in the Macedon Ranges Shire which includes Macedon, Kyneton, Gisborne and Woodend. Over the past five years house values have grown by 46.2%.

Following Macedon Ranges Shire was Mount Alexander Shire which is centred on Castlemaine. There house values have risen by 39.5%.

The further away from the Melbourne the area is the lower is the growth, presumably as there is less of a flow on from the metropolitan market.

In the City of Greater Bendigo values have risen by 38.4%, lower than Macedon Ranges but still well above the 28.4% recorded in Melbourne.

Interestingly values in Ballarat, with a rise of 33.9% have also exceeded Melbourne.

For many people, the attraction to these areas is highlighted by the availability of more affordable property coupled with a country lifestyle. The data shows that as a result of additional transport options in these areas it has made it more and more possible for people to maintain employment and undertake a tree change.

There are 573 auctions scheduled this week in Melbourne compared to 600 for the same time last year. This is a rare but minor 4.5% fall which does not reflect the fact that in the first eight months of the year there have been 29.5% more auctions than the same time in 2013.

The current regional variation in auction numbers should be taken into account when analysing the auction market as many sellers in the inner east appear to avoiding winter.

The main auction activity in Melbourne remains outside the inner eastern suburbs with 16 homes scheduled to go under the hammer in Reservoir, 11 in St Kilda and 10 in Essendon, Melbourne and Preston. For buyers looking in the more expensive inner east volumes are rising slowing with six expected in Camberwell, Kew and Hawthorn East.

The average time on market for houses sold last month rose slightly from 43 to 44 days. Vendor discounting contracted from -5.2% the previous week to -5% last week.

Key data

• Clearance rate week ending 27 July: 68.5%
• Melbourne auctions expected week ending 3 August: 573
• Melbourne private sales time on market week ending 27 July: 44 days (houses)
• Melbourne vendor discounting market week ending 27 July: -5% (houses)
• Listings being prepared for market are 0.7% higher in month ending 27 July (seasonally adjusted)

Photo courtesy of Richmeister/CC BY 2.5.