Auction market remains strong with Melbourne leading the charge

Australia’s auction market reached a likely crescendo last week when 2,358 auctions were held – the highest volume of auctions since we began collecting data nationally in the middle of 2008.  The national clearance rate remained just above 70 percent highlighting that buyers and sellers are still closely aligned in their expectations of market pricing.

Auction clearance melb v national 600w

 

Melbourne, which has always been the nation’s largest auction market, accounted for half of all auctions held last week and the clearance rate was 79.4 percent – a very healthy result by all measures.  Melbourne’s rate of auction clearance hasn’t dropped below 70 percent since early February ’09 – not a bad result considering between May and December 2008 Melbourne clearance rates moved above 70 percent just once.

 Auction clearance melb v national 600w

Of the 1,061 Melbourne auction results we captured, 148 were sold prior to auction, 673 went under the hammer and 21 were sold after the auction.

Considering the strong performance of the Melbourne market so far this year (Melbourne home values are up 14.9 percent over the first ten months of 2009), it will be interesting to see if the local market remains as robust next year.

Personally, my pick for the top performing capital city next year is Brisbane which generally lags behind the start of a new property cycle by about a year.  Over the first ten months of 2009 Brisbane home values increased by 6.9 percent which is well below the national average.  For a region that remains one of the strongest in terms of population growth and is undertaking some of the largest infrastructure projects in the nation, it is highly likely growth rates will outperform the other cities in 2010.

About Tim Lawless

Tim heads up the RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia

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