Melbourne's biggest test
This weekend could see auction records broken.
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The 1365 auctions will present the market with its biggest test of the year and coincides with early signs that high listing numbers may be impacting on recent buyer activity levels.
Last weekend’s clearance rate of 72.4 per cent was the lowest recorded this spring so far, except for the typically quiet grand final weekend.
Sellers, however, continue to flock into the auction market to take advantage of the best market conditions for three years.
A significant 1095 or 39 per cent more properties have been listed for auction over October this year compared to October last year.
Melbourne’s inner city is the most popular suburban region for auctions with 253 scheduled.
This is followed by the inner bayside region with 248, the inner east with 213 and the north east with 173 auctions listed.
Brighton is the weekend’s most popular suburb for auctions with 35, followed by St Kilda with 22, Richmond, Glen Iris and Hawthorn each with 21, and Reservoir with 20 auctions.
The most popular suburb for apartment auctions is St Kilda with 19, followed by Melbourne CBD and Elwood, each with 13.
The likelihood of unprecedented numbers of auctions will further reveal the underlying strength of the local housing market.
Solid auction activity over recent months has unsurprisingly translated into moderate price growth.
Latest APM data has revealed that Melbourne’s median house price increased by 2.2 per cent over the September quarter to be up by 7 per cent over the full year. Although this was the best result since June 2010 it was nonetheless well below the house price increases recorded through 2009 and into 2010.
Melbourne apartment prices fell by 0.6 per cent over the quarter and increased by just 0.3 per cent over the year.
Despite growth over the past year, house prices remain 1.8 per cent below their previous peaks with unit prices still 5.7 per cent below.
Dr Andrew Wilson is senior economist for the Fairfax-owned Australian Property Monitors.
Twitter@DocAndrewWilson
FAIRFIELD
177 Gillies Street
$1.5 million-plus
From the level of interest shown in this renovated Californian bungalow, the agent expects it to sell on auction day.
Inspect 11am, Saturday Agent Collins Simms, 9488 0688
ST KILDA EAST
1C Raglan Street
$680,000 - $730,000
This modern townhouse close to Alma Park had 90 groups through and three to five bidders are expected.
Inspect 12.30pm, Saturday Agent Buxton, 9536 7222
ELWOOD
4/65 Ormond Esplanade
In excess of $1.25 million
Strong interest has been shown for this single-level residence within a stone's throw of the beach.
Inspect 2.30pm, Saturday
