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Auction market quieter in Melbourne

Auction market quieter in Melbourne

The auction market might have been quieter in Melbourne due to Melbourne Cup, but buyers in Sydney stayed firmly in the race to snap up new homes and property.

Spring season is in full force in the Sydney and Melbourne property markets as both maintain their strong auction clearance rates. And there’s no sign of things slowing down, even with Melbourne sellers taking a week rest before Melbourne Cup.

More than 1,000 homes were up for auction in Sydney last week, an increase of 230 from the week prior. As we’ve seen in the past few weeks, increases in auction volumes seem to be doing little to dampen the demand among buyers. Core Logic reports that the preliminary auction clearance rate for last week was 84.4%.

In Melbourne, 629 homes went under the hammer, a decrease of 749 from the week prior. This saw the preliminary auction clearance rate drop slightly to 78.6%, according to Core Logic.

Across the other capitals, Adelaide (75%) and Canberra (71.1%) are still performing strongly for successful auction clearances while Brisbane (52.6%) lags behind.

Sydney highlights

The median auction price in Sydney continues to rise, with Domain reporting that last week’s was $1.3m. This is up from $1,210,000 the week prior and $1,154,000 in the same week last year. This rise reflects Domain’s results for its House Price report that shows house prices increased 2.9% over the September quarter while unit prices went up by 1.8%.

For $1.3m, buyers last week snapped up a 3br renovated unit in Drummoyne with views of Parramatta River, as well as a 4br single-level house in Epping.

On the pricier side of things was a 6br house in Strathfield which was bought under the hammer, for $5,65m, making it the most expensive property sold at auction last week. The three-storey home sits on 980sqm and includes an outdoor pool and even a steam room.

The most affordable property reported sold was a 1br unit with parking in Caringbah in Sydney's south that went for $424,000. Ten minutes from Cronulla Beach, the unit is north and east facing meaning it gets lots of light.

This weekend looks like another busy one in the Sydney market, with Domain estimating that well over 800 homes will go under the hammer this week.

Melbourne highlights

As well as the number of homes for sale and preliminary auction clearance rate, the median auction price was also down in Melbourne. Domain reports that the median auction price dropped from $872,000 the week prior to $813,000 last week. No property sold at this price, but a 4br, 836sqm residence in Reservoir went for $805,000, as did a 4br, 307sqm Mulgrave townhouse.

Domain’s House Price report found Melbourne home prices increased again over the September quarter, with house prices going up 3.1% and unit prices increasing 4.5%. This means the Victorian capital currently has the fastest-growing prices across all the capital cities.

Despite these numbers, however, there still appears to be more affordable options in Melbourne than Sydney. A 1br unit in Abbotsford was the most affordable property reported sold at auction, going for $301,000. Situated by the Yarra River, the unit offers convenient access to the CBD from a popular inner-city suburb.

The most expensive property reported sold was a renovated 4br house in Brighton. Going under the hammer for $4.525m, the renovated home is within 300m of Dendy Street's iconic Bathing Box beach.

Like Sydney, this weekend is expected to be busy in Melbourne with over 800 properties listed for auction this week.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.