Melbourne Auction Property Hot Spots

THIRTEEN Melbourne suburbs have emerged as 2010 auction hot spots.

The suburbs, which include Bentleigh, Newport and Essendon, have recorded a 100 per cent auction success rate, according to the Real Estate Institute of Victoria. Suburbs: Malvern East, Preston, Brunswick, Beetleigh, Elwood, Ferntree Gully, Newport, Thornbury, Bentleigh East, Mulgrave, Noble Park, Wheelers Hill.

“Every house that has been put up for auction in these suburbs this year has sold,” REIV research manager Robert Larocca said.

“It’s early days in the property market but it is clear already that demand is very strong this year.”

The auction market ended last year with a clearance rate of 81 per cent of all properties put under the hammer.

This year the clearance rate is 85 per cent.

Mr Larocca said the 13 suburbs with a perfect auction record ranged from more expensive areas, such as Elwood and Malvern East, to the more affordable Ferntree Gully and Noble Park.

He said this indicated demand for houses was across the board.

“Buyers are very active in most parts of the city and at most price ranges,” he said.

There are about 1000 listed for auction this weekend in the biggest test of the market so far this year.

`The biggest issue over the past 12 months has been a lack of properties being listed for sale’

- Ray White manager MARCUS WILLIAMS Real estate group Ray White is tipping property prices will continue to rise this year but at a slower rate than last year.

Victorian general manager Marcus Williams said there was still more demand for houses than supply and that would ensure auction clearance rates remained high.

The simple economic factors of supply and demand indicate that conditions favour prices continuing to rise rather than decline, although we expect price growth will be slightly lower than it was last year,” Mr Williams said.

“The biggest issue over the past 12 months has been a lack of properties being listed for sale and there are no real signs of the situation easing just yet.”

Mr Williams said despite expectations of higher interest rates, buyers were still expressing confidence in the economy.

“Buyers on the whole are factoring the likelihood of higher rates into their purchase and they are not put off by all the predictions of rates going up another 1 or 2 per cent in the near future,” he said.

First home buyer numbers had fallen since the first home owners grant was withdrawn at the end of last year but they had been replaced by people looking to upgrade.

“Property Investors are also coming out in force and they are attracted by increasing rents and low vacancy rates,” he said.

Photos: Melbourne Auction Property Hot Spots - click to enlarge