A review of property auctions and private sales in Melbourne by the Real Estate Institute of Victoria (REIV) has revealed more expensive property markets are favouring sale by auction, while private treaty remains the sale method of choice in more affordable markets.
Five of the suburbs that recorded more than three out of five sales by auction last year – Northcote, Camberwell, Richmond, Windsor and Alphington – were all within 15 kilometres of the CBD.
They are also all more expensive than the median Melbourne price, a simple sign that the more expensive a home is the more likely it is to be offered at auction, according to the REIV.
“Indeed, in the most recent June quarter, the median price of houses sold at auction was $730,000 and for those at private sale it was $500,000,” it said.
At the other end of the scale, five suburbs that recorded 95 per cent of sales by private sale – Pakenham, Point Cook, Werribee, Cranbourne and Melton – have two factors in common: they are growth suburbs and they are affordable, according to the REIV.
“This data should serve as a reminder to buyers that while the week-by-week clearance rate is an interesting barometer of the market, it won’t tell you a lot about demand in the more affordable or outer suburbs.”