Our auction spring fever

HOT SPOTS UNDER THE HAMMER

GEELONG’S cheapest suburbs are the best places to sell houses by auction as demand for property continues unabated.

A Geelong Advertiser analysis of CoreLogic sales data shows the region recorded an 82 per cent auction clearance rate this spring.

The strong selling rate underlines the strength of the region’s real estate market as Melbourne and Sydney both reached their statistical peak.

While the clearance rate rose amid the strongest volume of properties going to auction, new CoreLogic data shows the median house value in the region climbed 8.8 per cent to $497,000.

A dozen suburbs scored a 100 per cent spring strike rate, including some of the city’s cheapest neighbourhoods.

Norlane, Corio, Newcomb and North Geelong were among suburbs where every property taken to auction in spring found a buyer.

Along with Whittington and Thomson, these suburbs all have a median house price below $400,000.

A pivot to auctions in the eastern suburbs as selling times plummeted had helped sellers capitalise on rising demand, particularly from Melbourne buyers and investors, said Stacey Hayes, of Hayeswinckle, East Geelong.

Melbourne buyers and investors made up more than 60 per cent of buyers in the east, she said.

“This spring we’ve auctioned right the way through — anything that’s in that $200,000$300,000 or $400,000 and $600,000 bracket in East Geelong they’re all going really well,” Ms Hayes said.

“If we had to put a price bracket, it’s very hard psychologically to get people over the line in that top bracket.

“We’ve removed that in the likes of Newcomb. My last Newcomb property would have been happy with $350,000-$360,000, but it went to $385,000 in an auction environment.”

CoreLogic senior researcher Cameron Kusher said Geelong’s 82 per cent auction clearance rate was a lot stronger than Sydney and Melbourne.

“It shows there is clearly a demand for Geelong housing,” Mr Kusher said.

He said the strength in the cheaper suburbs showed price was a factor for many buyers.

“It’s pretty hard to find property these days under $400,000 in Melbourne,” Mr Kusher said.

“I think that’s driving clearance rates in Geelong.”

Competition is the biggest factor in traditional auction suburbs such as Belmont, East Geelong and Geelong West, where nine out of 10 houses auctioned found a buyer. The 74 per cent clearance rate in Newtown reflected the lack of competition for more expensive houses, Whitford, New- town, agent Dale Whitford said.

“From $500,000 to $1 million, there is still a lot of people around with that sort of money,” Mr Whitford said.

“Geelong West is just creeping over $1 million, but mainly through competition.”

Ray White, Corio, agent Maddison Boothroyd said properties taken to auction in Corio and Norlane attracted developers and investors on top of owner-occupiers.

“The properties that are being auctioned in the 3214 postcode are unique or over 600sq m,” Ms Boothroyd said.

“They are subdividable — that’s why those are being sold through auctions.

“But they are few and far between.

“They are a substantial size and attracting developers and investors or locals looking to upgrade.”