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After bearing the brunt of the impact of COVID-19 last year, the Victorian property market has recorded a mammoth monthly clearance rate for auctions.
Data from the Real Estate Institute of Victoria (REIV) showed that the state recorded a clearance rate of 84.8 per cent from more than 3,000 auctions held in February 2021, with the result beating out a previous February record of 84.0 per cent recorded in 2010.
“While lockdowns, international border closures and tightened purse strings have affected many markets, it has not spelled disaster for the Victorian property market as many doomsayers said it would,” the REIV said in a statement.
Over the year, the state’s performance has been boosted by incentives and support measures, including the First Home Loan Deposit Scheme, mortgage repayment holidays and low interest rates, it added.
Further, the increase in activity across auction markets has fueled the rising demand across the state following the easing of lockdowns.
While this signals good news to most, the REIV warned mum-and-dad investors against risks moving forward, particularly with regard to the changes in the Residential Tenancies Act, which could “disrupt the market with more red tape and increased ownership costs”.
Hotspots
Over February 2021, 17 suburbs across Victoria saw a 100 per cent clearance rate from a minimum of 10 listings.
Those suburbs included Hawthorn East, Fitzroy North, Ferntree Gully, Rowville, Brunswick East, Sandringham, Seaford, Collingwood, Ashburton, Blackburn South, Fawkner, Wantirna, Boronia, Fairfield, Hillside, Seddon and St Kilda West.
Meanwhile, Reservoir recorded the highest number of sales: 44 out of 53 total listings. This was followed by Coburg, which cleared 37 out of 38, and Bentley High, which cleared 35 out of 40.
Other suburbs on the top-selling list are Brunswick (34), Preston (34), Glen Waverley (33), Mount Waverley (31), Craigieburn (30), Richmond (30) and Carnegie (29).
Compared to results achieved in the same month last year, a total of 11 Victorian suburbs have doubled their auction sales.
Sunshine North led the charge with a 333 per cent increase in auction sales from February 2020 to February 2021, followed by Dingley Village and Gladstone Park with 200 per cent.
Also experiencing the highest annual improvement in auction sales are Ashwood (125 per cent), Albert Park (117 per cent), Fitzroy North (113 per cent), Doncaster (110 per cent), St Kilda West (100 per cent), Montmorency (100 per cent), Hoppers Crossing (100 per cent) and Templestowe (100 per cent).
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