Melbourne, Australia’s ‘auction capital’

Melbourne, Australia’s ‘auction capital’

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With the first half of the year reaping record results, Melbourne has solidified its reputation as the auction capital of Australia despite fluctuations in consumer confidence, according to the Real Estate Institute of Victoria (REIV).

REIV chief executive Enzo Raimondo said the buoyancy in the property market had been best illustrated in the number of auctions held this year – which has easily eclipsed the previous auction peak in 2010.

“The city has lived up to its reputation this year as Australia's auction capital,” he said.

“As of yesterday, we have seen 18,000 auctions held since 1 January 2014.

“This is the greatest number of auctions for any first half-year, easily higher than the previous record of just over 16,000 auctions in the first half-year of 2010,” he added. 

Mr Raimondo said the focus on auctions across Melbourne had been especially beneficial in some “middle-ring” Melbourne suburbs.

According to REIV, in many of these suburbs auction clearance rates have reached up to 97 per cent. 

"This reflects increased demand for middle-ring suburbs, as buyers seek more affordable options than inner Melbourne over the past six months,” Mr Raimondo said. 

Mr Raimondo said despite fluctuations in consumer confidence in recent months, the city's property market had remained solid. 

“Buyers have retained their strong belief in purchasing property – either as owner occupiers or as investors,” he said.

“Across Melbourne, buyers have taken advantage of the record-low interest rates and strong market to pursue the Australian dream.”

According to the June RP Data-Rismark Home Value Index results released today, the Melbourne market is well-placed for spring, well ahead of any of the previous three years.

House values rose by 1.7 per cent in the month and by 3.3 per cent this year compared to a rise of 2.7 per cent for units, which have shown zero growth this year.

The median sale price from settled sales in the quarter was $630,000 for houses and $468,000 for units.

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