Auction trends: Suburbs with the highest number of auctions
Melbourne has been called the auction capital before and if the latest national auction count is anything to go by, it’s official.
A top 10 list of suburbs with the most auctions recorded in the past three months were all from the Victorian capital.
North on the city’s fringe, Reservoir tops the list with a whopping 205 auctions recorded from October 2015 to January 2016. Of those, 60% were sold at auction and 31% were passed in.
Melbourne’s largest suburb offers value
Michael Love, Director of Love Real Estate in Reservoir, says the auction market in the area has been very strong recently, with more and more vendors choosing auction as a competitive and transparent method to sell their home.
Love says enquiries to buy in Reservoir are coming from people who are being priced out of popular inner northern suburbs suburbs such as Thornbury and Preston and are finding great value for money in Reservoir.
“We are finding a large diversity of buyers moving into Reservoir, from the young professionals and young families to investors from the eastern suburbs finding great value,” he says.
While auctions are certainly a popular method of sale in the suburb, the fact that Reservoir is Melbourne’s largest suburb may be another reason why it tops the auction count.
Due to its size, Reservoir has more than 10,000 homes, ranging from family homes on large blocks to modern, geometric townhouses and units.
“Reservoir has such diversity of homes from the more affordable $200,000 price range to million dollar period homes,” Love says.
“We are lucky to be able to accommodate people downgrading from large blocks and beautiful homes and upgrading from units and apartments into the larger homes on bigger blocks, all within the same suburb.”
Love says Reservoir is trending towards real gentrification as it becomes an emerging destination for young professionals with families.
More development in Mount Waverley
Another of Melbourne’s largest suburbs, Mount Waverley bears similar traits to Reservoir – diversity in people and housing, and proximity to the city. Mount Waverley had the second highest number of auctions at 188.
Good schools and demand from overseas buyers has seen the median house price in Mount Waverley jump from $1 million to $1.27 million.
Paul Polychroniadis, of Jellis Craig – Mount Waverley, says the suburb has increased in terms of desirability for the lifestyle purchaser, with its good balance of modern conveniences and green reserves.
But it has also captured the attention of the more sophisticated investors and developers who recognise the short and long term benefits of buying into the suburb.
“It’s one of the corridors for the overseas markets. But what’s interesting is that you’ve not only got overseas buyers, but a lot of investors from Armadale, Kew and Hawthorn coming to have a slice of the area, because they can see it’s a lucrative market to be in.”
Polychroniadis says the more affluent clientele is drawing in high-end developers.
“We’re getting a lot of crossflow of medium to large developers entering the Mount Waverley space,” he says.
“A lot of these developers are building new homes, townhouses and even apartments.”
Despite heading into to a more steady market in 2016, Polychroniadis says most of the properties in Mount Waverley that are listed will go to auction.
“There are multiple bidders and demand is still there,” he says.
An area that is middle-class in essence, Mount Waverley provides all the necessary infrastructure for that segment of the market. There’s a combination of good quality public and private schooling, and a brand new shopping centre.
“You’ve got a good balance of modern conveniences plus it’s a nice green belt… you can still experience that kind of spacious living just a hop, skip and jump from the city.
National auction count
These are the suburbs with the highest total auctions recorded from 19/10/2015 – 24/1/2016.
10. Northcote, VIC – 109
Article courtesy of realestate.com.au