Hi,
There has been little change to Melbourne’s auction clearance rate after the Reserve Bank of Australia (RBA) increased interest rates by 0.25%. There were 464 auctions reported to Domain with 306 selling, 50 being withdrawn and 108 passing-in resulting in a preliminary clearance rate of 66%. Although there was a slight dip in the clearance rate achieved last week (70%), this is the same rate as it was for the same weekend last year.
The RBA last week raised the cash rate to 3.85% due to higher than expected inflation in the second half of 2025 and low unemployment. At this stage, this doesn’t appear to have greatly impacted buyer behaviour. In fact, most buyers who are actively searching have already taken into a account interest rate hikes.
Some buyers are also hoping this may weaken demand and therefore create less competition when trying to secure a property. Whether this happens or not is the unknown at this point. Regardless, housing demand remains strong and whilst population continues to grow in Melbourne, it will very likely continue to result in increased pressure on property prices and rents.
There have been some reports of very active bidding at some auctions on the weekend, with one example being 113 Whitby Street, Moonee Ponds which sold well above the reserve. The three bedroom, two bathroom, one living renovated home with one car park was under strong competition. The property was quoted at $1,400,000 to $1,500,000 prior to auction with five bidders participating in the auction. The property sold for $195,000 above reserve for $1,695,000.
Another auction on the other side of town at 8 Logan Court, Mentone also sold under the hammer with three upsizers participating in the auction. The four bedroom, three bathroom home renovated resort style home on 819 sqm sold for $1,765,000 which is at almost the same price for when it sold last at the peak of the market in March 2022 for $1,800,000.
Have a great week.
Kim Easterbrook – Managing Director
