A surge in residential sales is helping Victoria lead Australia into a property recovery.
The garden state’s capital city has achieved consistently high clearance rates for the past few months, with no signs of slowing down.
RP Data director of property research Tim Lawless told Mortgage Business that cclearances in Melbourne have been above 80 per cent since the second week of June.
“The reason clearance rates are so high are twofold: vendors have become more realistic in their reserve prices and competition is heating up amongst buyers. In all likelihood we will see auction clearances maintain their high levels over the coming months,” he said.
Ray White said their record high clearance rates could be attributed towards the growing trend of in room auctions.
The real estate is currently planning to stage a week-long series of in-room auctions statewide in October.
“Our ambition is to sell more than $50 million of residential property under the hammer in this one week,” Ray White Victorian general manager Marcus Williams said.
“In-room auctions may never replace on-site auctions but they are an additional selling method that we extend to our vendors and it has been proven that they attract serious buyers,” he said
In August, sales topped $400 million, a record for the state.
The result was 11 per cent better than the previous record result and 55 per cent higher than the same time last year.