Melbourne's auction market breaks new record

by Julia Corderoy09 Oct 2014
September saw Melbourne break a new record with auction numbers up 15% in the city and 3% in the middle and outer suburbs compared to this time last year.

According to the Real Estate Institute of Victoria, Melbourne’s middle and outer suburbs represented 16% of total auctions over the three months to September, as homebuyers move out of the city to find lower prices in the heated Melbourne property market. 

Clearance rates in these middle and outer suburbs also remained strong – led by areas such as Dingley Village, Bulleen and Montmorency which recorded well above 90%. Inner locations, specifically Hawthorn East and Collingwood, recorded similar high clearances.

Real Estate Institute of Victoria CEO Enzo Raimondo said the start of spring pointed to the continued solid performance of Victoria’s housing market. 

“The inner and middle south-east and eastern suburbs have consistently been the city’s hot spots in terms of the volume of auctions,” he said.

“But strong clearances in the outer metro areas have shown that buyers are increasingly seeking value in the more affordable parts of town. The heightened demand for homes in these locations in turn is driving a push towards more auctions, with vendors benefiting from higher prices due to competition on auction day.”