Auctions

There were over 5,000 auction sales in the first four months of 2013 comprising an estimated 24 per cent of sales in Melbourne.

This is higher than last year’s share of 20 per cent and is consistent with 2010 and 2011. Historical analysis shows that as the market strengthens so too does the proportion of homes sold at auction.

Over the past five years, Melbourne has averaged approximately 1,600 auction sales in April with a clearance rate of 73 per cent. In April there were 1,590 auction sales with a clearance rate of 67 per cent.

On a weekly basis the clearance rate improved over the course of the month from a low of 63 per cent. Analysis of results on a suburban basis showed a clear impact from the school holiday an associated reduction in auction listings in the inner east and south east.

The top five suburbs with the most auction sales to date this year were Richmond (109 sales), Reservoir (88 sales), Hawthorn (79 sales), South Yarra (74 sales), and Prahran (73 sales). Thornbury feature in the top ten suburbs with the highest clearance rate (92 per cent) as well as with the most auction sales (62 sales).

For the first time, the REIV has introduced auction clearance rates for commercial, industrial, and retail sales. There were 31 non-residential auctions for Victoria in April with a clearance rate of 90 per cent. This is higher than the previous year’s clearance rate of 83 per cent ans is also based on a higher number of auctions. The majority (55 per cent) of the auctions held were for retail properties, followed by industrial (29 per cent), and commercial (16 per cent).

A total of around $25 million worth of non-residential property was sold through auction in the month compared to $1.095B worth of residential property.

*Article courtesy of Real Estate Institute of Victoria