The Melbourne auction clearance rate dropped slightly to 74% over the weekend with 638 auctions being held across the city. 355 sold at auction, 116 sold before auction, 1 sold after auction and 166 passed in (83 of those on a vendor bid). In comparison, the same time last year there were 602 auctions held resulting in a clearance rate of 71 percent.
The REIV has released its September quarter 2023 median prices and it shows that for the first time since the June 2021 quarter, houses and units across Melbourne (being inner, middle and outer rings) all recorded growth. In regional Victoria, both houses and units remained stable and recorded no quarterly change. Statewide, the median house prices were up 1.3 percent and units up 1.8 percent.
This data confirms what we are seeing on the ground with active bidding at most auctions we are attending. Renovated houses are still performing well but we are getting a sense that the demand for unrenovated properties is on the rise again. Villa units are a very strong segment of the market with high demand for properties with a little bit of land. Apartments are still suffering from the Covid hangover but from a rental point of view are in high demand from tenants as the supply continues to dwindle due to landlords selling.
My team attended many active auctions on the weekend including 3C Manuka St, Bentleigh East which was quoted at $1,100,000 to $1,200,000 prior to auction. The property is a modern four bedroom, two bathroom townhouse but located a long way from public transport and a shopping strip. It demonstrates that some buyers will put space and condition above location when selecting a property. The auction attracted five bidders and the property sold for $1,385,000 on a reserve of $1,100,000.
22 Banool Road, Surrey Hills was also a popular property and attracted very active bidding at the auction. The well presented four bedroom, two bathroom home was quoted at $1,900,000 to $2,090,000 prior to auction. The property was announced on the market at $2,000,000 in front of a huge crowd of almost 150 people. Six bidders in total pushed the selling price to $2,405,000.
Have a great week!