Private treaty suburbs now enhancing Melbourne's auction crown: REIV Enzo Raimondo

Private treaty suburbs now enhancing Melbourne's auction crown: REIV Enzo Raimondo
Private treaty suburbs now enhancing Melbourne's auction crown: REIV Enzo Raimondo

The REIV reported the top weekend auction locations were Reservoir and Yarraville with nine auctions in each, followed by Dandenong North with eight auctions.

The 2015 auction capital is Reservoir - for the second successive year, the REIV chief Enzo Raimondo noted adding Victoria's housing market secured the highest number of auction sales over any six-month period in Melbourne’s history – in the six months to 30 June.

Some seven of the nine Reservoir weekend auctions resulted in sale ranging between a $380,000 unit and (pictured above) a $1 million 1920s house. 

Click to enlarge

Private treaty suburbs now enhancing Melbourne's auction crown: REIV Enzo Raimondo

A total of just over 13,000 homes were sold at auction over the past six months, compared to about 12,400 over the same period last year.

The biggest growth in sales was driven by outer Melbourne, with these suburbs seeing a 20% year-on-year increase – to 2,263 auction sales this year (compared to 1,879 in the first half 2014).

Enzo Raimondo said Melbourne’s reputation continued to grow as the auction capital of Australia, with traditionally private-sale suburbs now turning to auctions as buyer numbers trend upwards.

“The growth in auction sales in outer Melbourne has helped push the city’s clearance rate to a high 80%, compared to 73% this time last year,” he said.

Mr Raimondo said the large increase in auction sales in outer Melbourne reflects several factors, including a growing interest from owner occupiers in areas which are still affordable and within commuting distance of the CBD, and a growing number of investors securing homes in these areas.

One suburb, Wantirna South, has seen a 100% increase in auctions this year - from 36 for the first six months last year to 72 this year;

The middle suburbs had the highest proportion of auction sales in Melbourne, where 82% of properties going into auction were sold.

In other results, three eastern Melbourne suburbs recorded the next highest year-on-year increase in the number of auctions - Mount Waverley, Glen Waverley and Bayswater. 

Others in the top 10, which covered all of Victoria, were Rosebud and Shepparton.

“Melbourne’s east has seen some of the strongest growth in buyer activity and in median prices in Melbourne this year, leading to many more auctions in this region,” Mr Raimondo said.

The inner Melbourne suburb with most auctions this year is Richmond – where 230 homes have gone to auction, with 186 selling.

A clearance rate of 78% was recorded throughout June 2015, compared to 72% the same time last year.

"This is the highest clearance rate for the month since 2009," the REIV chief advised.

Tags: 
Victoria Sales

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