More than a billion dollars a week spent on Melbourne property in 2014: Robert Larocca

In 2014 a total of $53.7 billion, over one billion dollars a week, was spent on Melbourne residential real estate.

This is an increase from the $52.9 billion in 2013 and $43.8 billion in 2012, reflecting the overall growth in the market over the last few years. It is worth noting that last year was still slightly below the all time record of $54 billion in 2010.

The citywide changes are also reflected at a suburban level.

Whilst the top 10 Melbourne suburbs ranked by the total spent on residential real estate did not show a lot of change between 2013 and 2014, the amount spent did.

Top of the list was Brighton. Last year an average of $2.3 million was spent every day in Brighton property purchases and $378,213 more every day than the previous year.

This pushed the entire value of sales from $700 million to $841 million. Brighton may have a higher value of sales than any other suburb, however the increase was dwarfed by the rises recorded in Melbourne, Glen Waverley, Kew and Toorak.

In 2013 for instance, $1.49 million was spent on units in the suburb of Melbourne and this rose by half a million dollars a day to $2.05 million. This rise is partly due to the increased prices being paid and partly the increased construction.

Glen Waverley recorded the most significant difference.. Over the course of the year $233 million more was spent on houses which in turn pushed the median house price up from $807,000 to $970,000. Neighbouring Mount Waverley also saw a significant rise of $311,747 on a daily basis.

Key points:

• Over one billion dollars a day was spent of residential real estate last year
  
  
• Brighton recorded the highest spend, $842 million
  
  
• Glen Waverley recorded a $233 million rise

WEEKEND AUCTION PREVIEW

There are 1,459 auctions scheduled this week in Melbourne compared to 1,414 for the same time last year. The highest volume of auctions in a single suburb will be found in Reservoir where 29 are expected. There are 26 scheduled in St Kilda and 24 in Brighton.

The compressed autumn auction market, the three weeks between Labour Day and Easter, are delivering excellent results to vendors with clearance rates tracking nearly 10 points above the same time last year while simultaneously showing high volumes.

At the end of last year the market appeared to have a slowing trend but the interest rate cut has clearly reversed that.

Citywide across the private sale market over the past week the time on market results for houses sold at private sale fell to 31 days, down from 32 days in the previous week. Overall vendor discounting contracted to -5.2% from -5.4%.

Key data:

• Clearance rate week ending 22 March: 77.1%
  
  
• Melbourne auctions expected week ending 29 March: 1,459
  
  
• Melbourne private sales time on market week ending 22 March: 31 days (houses)
  
  
• Melbourne vendor discounting market week ending 22 March: -5.2% (houses)
  
  
• Listings being prepared for market are 11.2% higher in the month ending 22 March (seasonally adjusted)