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By: Jessica Darnbrough
In an unusual twist of events, Melbourne’s property supply outstripped demand over the weekend, resulting in a low auction clearance rate.
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According to the Real Estate Institute of Victoria (REIV), the clearance rate in Melbourne fell to just 70 per cent – significantly lower than the 80 per cent the city has averaged over the past few months.
But while the clearance rate was down, REIV chief executive Enzo Raimondo said he wasn’t concerned.
“Melbourne has never seen as many auctions on a winter weekend,” Mr Raimondo said.
“The residential market is more in balance than it was earlier this year and that means buyers are facing the best conditions in over a year.”
RP Data’s director of research Tim Lawless agrees and said it would be hard for supply to ever completely outstrip demand in Melbourne.
“Melbourne has been one of the most strategic planners of any major capital. Provision for new housing and infrastructure improvements have been well thought out and building approvals in Victoria have been tracking much healthier than most other capital cities,” Mr Lawless told The Adviser.
“This strategic management of population growth, together with natural demand inhibitors like affordability pressures are likely to see Melbourne housing prices maintain a consistent but sustainable level of capital gain going forward.”
In Sydney, auction clearance rates slightly improved over the weekend to sit at 65 per cent.
A four bedroom house in Putney was the most expensive property sold in Sydney over the weekend, going under the hammer for $4.2 million.
