Despite the broadening of concern surrounding the impact of the coronavirus in Australia the Melbourne property market had a strong weekend of activity.  Our agents reported consistently good attendance at Open for Inspections and solid bidding at Auctions.

The balance between demand and supply are likely to remain in the Vendors favour due to stock levels declining as we enter winter market conditions.

Melbourne

The Melbourne auction market resumed on Saturday following last weekend’s pause in activity due to the Labour Day long weekend holiday.

Although clearance rates were down on recent boom-time results, the market clearly remains in favour of sellers with no significant drop-off due to the coronavirus fear-factor.  

Melbourne recorded a clearance rate of 70.2% on Saturday, like the previous weekends 71.9% but well ahead of the same weekend last year’s 56.9%.

Auction numbers were predictably higher this weekend with 1090 compared to last weekend’s 345 and well ahead of the same weekend last year’s 744 auctions.

Melbourne recorded a weekend median auction price of $865,000 which higher than the previous weekend’s $793,000 and 11.5% higher than the same weekend last year’s $776,500.

Latest ABS data predictably revealed a surge in first home buyer activity over January as the first home buyer deposit scheme came into force.  First home buyer lending in VIC has soared by 33.1% over the past year.

Premium Melbourne

Bayside region reported Premium Melbourne’s clearly top clearance rate at the weekend at 90.2% closely followed by Port Phillip 75.0%, Stonnington 67.5% and Boroondara 67.2%.

Boroondara again recorded the highest median house auction price at $2,000,000 followed by Stonnington $1,650,000 and Bayside $1,325,000.

Dr Andrew Wilson is Chief Economist for My Housing Market


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