Auctions generating 90pc of million-dollar sales

A booming auction market and rising property values have been creating an increasing number of millionaires in Melbourne.

According to the Real Estate Institute of Victoria, preliminary results for the first three months of the year show that 18.2 per cent of the 8,317 homes sold in the state grossed at least $1 million.

Of those sales, 50.5 per cent were in Melbourne’s inner-ring suburbs, which are located within 10 kilometres of the city centre.

Another 37.4 per cent were in the middle ring, or within 10-20 kilometres of the centre, while 8.8 per cent were in the outer ring, or more than 20 kilometres from the centre.

The preliminary results are similar to the figures recorded in the final quarter of 2014.

Of the 15,127 properties sold between October and December, 18.3 per cent attracted prices of at least $1 million.

Melbourne’s inner-ring suburbs represented 51.8 per cent of those million-dollar sales, while the middle ring had 39.0 per cent and the outer ring had 8.2 per cent.

The results also revealed that 90.1 per cent of those million-dollar sales were achieved at auction, while 9.9 per cent were achieved privately.

By the end of last year, 59 Melbourne suburbs had median house prices of more than $1 million.

REIV chief executive Enzo Raimondo said while it was no surprise that most million-dollar sales occurred in the inner and middle rings, some more affluent buyers were also targeting the outer ring.

“Melbourne’s outer suburbs are often thought of as comprising mostly affordable homes sought by first-time buyers, families and those on a tight budget,” he said.

“But many people choose to live further from the city centre and are also willing to pay more. Some of those making that choice are buying superb homes to do so.”

[Related: Melbourne listings fall 11.2 per cent]

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