Weekly Market Update - 15th June 2017
By | 15th Jun 17

Melbourne property market had a bit of a breather this weekend with only 291 auctions and a 76% clearance rate due to the Queen’s Birthday long weekend. We saw some solid results at the auctions that we attended. There was a property in a very poor location in Wingate Avenue, Ascot Vale opposite commission housing that had an outstanding result showing that even properties that are poorly located are achieving solid results at the moment as it sold for $930,000 under the hammer with a number of bidders competing. It sold well over $100,000 above reserve, showing that in the current market, even inferior properties are selling for top dollar.

The outer suburbs have definitely taken over the mantel as Melbourne's auction mecca suburbs as we saw in a recent article that showed that out of the fourteen top auction suburbs for the year, only two of them were in the inner areas, being Kew and Preston that were 6 and 8 kilometres from the city. The other twelve were in the outer suburbs just showing that demand has rippled outwards, as our inner suburbs have increased solidly, buyers are pushing to the outer suburbs. Those suburbs now have vendors and agents promoting the auction strategy as the best strategy. Read our comments in Samantha Landy's article here. 

The inner suburbs have dominated growth over the last 5 years that we have seen a boom market since the market bottomed in September 2012. Many inner suburbs have doubled, including South Yarra, South Melbourne, Armadale, Toorak and Prahran to name a few. Buyers need to be careful if they are buying in these suburbs and make sure they are not buying at the peak of the market, as many suburbs have already boomed and I think buyers will see more growth in the middle suburbs as more and more buyers ripple out.

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