Market holds strong
CLEARANCE rates are holding to trend as Melbourne’s auction market approaches its penultimate weekend for 2015.
CoreLogic RP Data recorded a preliminary 65.2 per cent clearance rate for last week, after collecting 1487 reported auction results.
The rate was similar to the previous weekend, when 65.9 per cent of properties were knocked down.
Analysis of the four-week average clearance rate calculated by CoreLogic RP Data shows the market was at a similar position in December for the past three years.
Inner Melbourne suburbs again provided strong results, with a 67 per cent clearance rate on 323 scheduled auctions, but the northeast had the best performance, with 68.4 per cent of 185 auctions reported sold.
There are 1497 auctions scheduled across Melbourne this week, including 40 at Reservoir.
WBP Property chief executive Greville Pabst said buyers remained out in force with between one and four underbidders also keen to buy.
There were four bidders at a solid brick Federation home on a 740sq m Flemington corner block, which fetched $2.112 million under the hammer, just 10 months after it sold in original condition for $1.76 million.
Nelson Alexander, Flemington, senior partner Paul Harrison, said 27 Waltham St was not a premeditated flip, although the sellers had installed a new kitchen and bathroom as part of a cosmetic renovation. They had been recalled to their home state for work, forcing the sale.
However, the nearly $450,000 price growth achieved since February showed buyers were prepared to pay big prices for quality properties in Flemington.
“They made it present a lot better than it did the first time around,” Mr Harrison said.
He said buyers were now prepared to pay more than $2 million to get into the Flemington market.
Four bidders were also in action at Mill Park, in the city’s northeast, where a threebedroom home sold for $506,000 — a hefty $66,000 over the reserve price.
Harcourts Mill Park director Josh Allison said two young families were the main protagonists at 87 Garden Grove, with children at their feet as bids flowed.
This renovated Flemington residence sold last week for $2.112 million.