The property market is still showing consistent clearance rates but also producing strong results for some properties too. The weekend’s clearance rate was 66 per cent on 575 auctions. Last weekend, the clearance rate was 68 per cent and the year to date average is 69 per cent. There were 560 private sales and 780 auctions are expected for next weekend.
Over the weekend our Managing Director, Kim Easterbrook, featured in an article in the Herald Sun named ‘Boom Time in the Burbs’. Four of Melbourne’s suburbs have recorded their highest ever median prices, being Brighton, Northcote, Doncaster and Yarraville. The rise in the Brighton median price can be attributed to a stronger market which has strengthened the higher end sector. The 22 per cent increase in median price from 2012 to 2013 does not reflect an increase in prices by this amount, but has resulted from the increased results in the higher end market and not just the entry level properties in the area.
Northcote and Yarrraville increases have come at no surprise to us at all as we have seen an increase in demand by professional couples entering into the market. We are also seeing a rise in demand in areas such as Richmond to the same degree as Northcote and Yarraville, and we are predicting to see a rise substantial rise in Richmond’s median price for the June Qtr.
Population growth has also been a topic of discussion in recent weeks with the Australian Bureau of Statistics stating that Victoria has 94,800 new residents from September 2011 to September 2012. This population growth is one of the key drivers of capital growth in Melbourne.