14th March 2022 / Jeremy Desmier: Market Update | 12 & 13 March 2022

Auction numbers were driven down over the weekend due to the Labour Day public holiday, with just over 1,500 auctions scheduled across the capital cities.

The proportion of sold prior auctions increased for all capital cities increased however, and higher auction volumes are set to return as the market moves further into the Autumn selling season.

Over the weekend, the Fletchers Group was thrilled to achieve a 100% clearance rate, despite the low auction volume.

The Fletcher Manningham team was thrilled to have a couple of successful auctions, with both 32 Koolkuna Avenue, Doncaster and 1A Woodhouse Road, Doncaster East selling under the hammer, with three bidders each. They also sold 90A Tunstall Road in Donvale, prior to its scheduled auction.

After a successful marketing campaign, agent Jessica Chin was pleased to see four bidders participate on auction day for the chance to secure the designer home at 3/6 Tiller Street, Burwood East. The property, zoned for Burwood East Primary, sold under the hammer.

In other property news, Melbourne's outer northeast and east have been revealed by the REA Group as the most in-demand areas among serious Autumn home buyers. The suburb of Warrandyte is leading the way, followed by Croydon South and Park Orchards. Fletchers Warrandyte Senior Associate, Dominic Cruz, described Warrandyte as "a bit of a hidden gem" due to its cafe culture and its pristine stretch of the Yarra River.

"It's very tightly held, there has always been a lack of stock because there is never enough to buy or rent," he said. His colleague Dori Jennings said the area was popular with families because a wide variety of schools are located in the vicinity, including public, private and Catholic colleges.

PropTrack economic research director Cameron Kusher said prior to the Covid-19 pandemic, inner suburbs such as Hawthorn and Malvern would likely have been in the top 10. But with people continuing to work from home, many were now looking for larger blocks and "a bit of a different lifestyle".

New figures from the Domain Group show, however, that the hot competition for lifestyle properties in Melbourne's outer suburbs has started to cool after a two-year rush for more space. Lifestyle areas boomed in the height of the pandemic as remote workers searched for more spacious accommodation near beaches and parks. But as many prepare to return to CBD offices at least part of the week, competition in far-flung suburbs has cooled

Domain chief of research and economics Nicola Powell said the signs point to a stabilising market, after a mega two-year property boom and 18.6 per cent house price growth in Melbourne in 2021 to a record $1,101,612 despite months of lockdown.

"We're definitely seeing different housing market dynamics play out now," Dr Powell said. "Listing numbers are normalising – Melbourne was the only city [in February] where listing numbers were above the five-year average, which is helping to ease conditions for buyers, giving them more choice."

Despite this, the south-east region recorded a slight rise in clearance rates over the year, with Fletchers Yarra Ranges director and auctioneer Scott Allison saying that property sales in suburbs on Mount Dandenong were still selling strongly.

"For weatherboard homes, we're having up to 40 people through a week, and we're averaging between one and three offers, sometimes more," Mr Allison said. Buyers were still moving from inner-city areas and from interstate for a tree change, he said.

Results. It's a Fletchers thing.