Melbourne records worst auction weekend of 2017 as listings surge – Domain News

The Melbourne auction market recorded its lowest result of the year so far, weighed down by a surge in pre-spring listings.

Melbourne reported a clearance rate of 71.7 per cent on Saturday which was lower than the previous weekend’s 73.7 per cent result.

It’s the lowest rate recorded in what has been a bullish 2017, with an unusually hot winter market.

This four-bedroom home at 20 Coonil Crescent, Malvern sold for $4,050,000 on Saturday.This four-bedroom home at 20 Coonil Crescent, Malvern sold for $4,050,000 on Saturday.

Saturday’s result was also well below the lower the 79.5 per cent reported over the same weekend last year when interest rate cuts fuelled the market.

On Saturday 823 homes were scheduled for auction which was higher than the previous weekend’s 762 auctions and the highest number for nearly two months. Auctions remained well ahead of the 523 listed over the same weekend last year with again well over 800 auctions listed next weekend.

Melbourne recorded a median auction price of $898,000 on Saturday which was higher than the $820,000 reported over the previous weekend and 19.1 per cent higher than the $754,000 recorded over the same weekend last year. A total of $412.8 million worth of property was reported sold at auction in Melbourne at the weekend.

Notable sale: 173 Nelson Road, South Melbourne sold for $3,825,000 on Saturday.Notable sale: 173 Nelson Road, South Melbourne sold for $3,825,000 on Saturday.

Investors remain a key ingredient of the Melbourne housing market despite recent actions by the financial regulator and banks to curtail activity from this group due to perceptions of supposed housing market risk.

The latest ABS data reports that the value of loans approved to residential investors in Victoria over June surged by 8.9 per cent to $4.1 billion. This was the highest monthly total ever recorded by the state and reflects strong appetite from investors attracted to rising prices and relatively high yields in a low yield economy.

Higher interest rates and tighter lending conditions have clearly failed to curb investors, who may be passing on higher costs to tenants in tight rental markets or securing finance from sources other than the major banks.

Outer suburban lower-priced regions continue to record the highest clearance rates in Melbourne with inner suburbs lower and with larger volumes of listings.

The northern suburbs maintained their leadership of the regional markets with another strong 82.2 percent clearance rate although down on the previous weekend’s boom result. Next highest region was the south east with 80.0 per cent followed by the west 76.9 per cent, the north east 76.6 per cent, the outer east 72.5 per cent, the inner city 67.7 per cent and the inner east and the inner south each with 67.6 per cent.

Notable sales reported at the weekend included:

This four-bedroom home at 8 Linden Court, Prahran sold for $4,200,000 on Saturday.This four-bedroom home at 8 Linden Court, Prahran sold for $4,200,000 on Saturday.

The most expensive property sold at auction was 5-7 Braeside Avenue, Camberwell which sold for $5,010,000 by Marshall White. The most affordable property reported sold at the weekend was a one bedroom unit at 4/566 Pascoe Vale Road, Pascoe Vale sold for $257,500 by Brad Teal.