Hi,
Melbourne’s Domain preliminary clearance increased to 68% over the weekend with 613 auctions being reported to Domain, 418 selling under the hammer, 72 withdrawn and 123 passed in. In comparison, the clearance rate for the same time last year was 66%.
The recent interest rate rise doesn’t appear to have put a dampener on Melbourne’s property market. Buyers are still engaged, some cautious but willing to transact. Many buyers had already factored in interest rate rises into their budgets so they are happy to continue on the property purchasing journey.
Interstate investors are still circling. Melbourne’s property prices really haven’t moved for a number of years, especially when comparing to cities like Perth and Brisbane which have experienced strong growth. Whilst Melbourne’s population is still on track to become the most populated city by 2031-2032, many are still viewing Melbourne as a good opportunity to invest in.
The opens for inspections and auctions I attended over the weekend generally had good numbers. The sun was shining, and people were out looking for their future home or investment property. Interestingly, the two auctions I attended, had active bidding from two and three bidders, but both passed-in (didn’t reach the vendor’s reserve price). One sold immediately after, the other didn’t. An auction of a renovated family home on a busy street had well over 100 people watching.
Although there was an initial shock when the interest rate rise was announced, the Melbourne property market seems to be holding up well. The auction clearance rate remains stable and even with the chance of one or two interest rate rises this year, it doesn’t appear to be holding buyers back.
Have a great week.
Kim Easterbrook – Managing Director
