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After bearing the brunt of the impact of COVID-19 last year, the Victorian property market continues on a recovery trend, recording its highest clearance rate in 11 years.
Data from the Real Estate Institute of Victoria (REIV) showed that the state recorded a clearance rate of 84.8 per cent from more than 3,000 auctions held in February 2021, beating out the decade-high clearance rate of 84.0 per cent recorded in 2010.
“While lockdowns, international border closures and tightened purse strings have affected many markets, it has not spelled disaster for the Victorian property market as many doomsayers said it would,” REIV said in a statement.
Over the year, the state’s performance has been boosted by incentives and support measures, including the First Home Buyers Scheme, mortgage repayment holidays and low interest rates, it added.
Further, the increase in activity across auction markets has fueled the rising demand across the state following the easing of lockdowns.
While this signals good news to most, REIV warned mum-and-dad investors against risks moving forward, particularly with regards to the changes in the Residential Tenancy Act, which could “disrupt the market with more red tape and increased ownership costs”.
Over February 2021, 17 suburbs across Victoria saw a 100 per cent clearance rate (minimum of 10 listings), including Hawthorn East, Fitzroy North, Ferntree Gully, Rowville, Brunswick East, , , Collingwood, Ashburton, Blackburn South, Fawkner, Wantirna, Boronia, , , Seddon and St Kilda West.
Compared to results achieved in the same month last year, a total of 11 Victorian suburbs has doubled their auction sales.
Also experiencing the highest annual improvement in auction sales are Ashwood (125 per cent), (117 per cent), Fitzroy North (113 per cent), Doncaster (110 per cent), St Kilda West (100 per cent), Montmorency (100 per cent), Hoppers Crossing (100 per cent) and Templestowe (100 per cent).