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Melbourne auctions: the best suburbs for buyers and sellers

28 Sep 2015 - Four C Realty

Melbourne’s auction market is favouring sellers with three in four homes selling under the hammer, but that doesn’t mean buyers everywhere are out of luck. 

 
The better markets for house hunters include Balwyn North, Glenroy, Epping, Craigieburn and Essendon, Domain Group data shows. 
 
Buyers looking for units generally have more bargaining power than those purchasing houses, and the inner-city suburbs of St Kilda, Richmond, Toorak, Prahran and Melbourne in particular are buyer-friendly. 
 
In these markets, a lower proportion of homes sold under the hammer over the past month compared with the city average.  
 
Domain Group senior economist Andrew Wilson said that in Balwyn North, where 72.5 per cent of 51 houses sold, vendors’ expectations might be outpacing what the market was willing to pay.
 
“The clearance rates are falling, it’s easier to buy even though it is expensive (with a house median of $1.8 million),” he said.
 
“It’s a good time for buyers to negotiate because sellers aren’t getting what they expect to get.”
 
 
Dr Wilson said there could also be good value buying for units in the north, where prices were still below their previous peak. 
 
 
With only 58.3 per cent of the 12 apartments selling at auction, Prahran was also a buyers’ market. 
 
 
The better suburbs for house sellers include Mount Waverley, Moonee Ponds, Greensborough, Bundoora and Coburg.
 
About nine in 10 houses sold at auction in these suburbs over the past month, and the turnover had also been strong. The house clearance rate for the city was 77.5 per cent. 
 
For units, vendors hold the upper hand in Elwood, St Kilda East, Malvern, Camberwell and Noble Park. 
 
Dr Wilson said Mount Waverley was the strongest early spring performer, where 94.3 per cent of the 35 houses sold under the hammer. 
 
This meant even the B- and C-grade properties were selling at auction, he said. 
 
“If you’re a seller, you can sleep well at night,” he said. “If you’re looking to pick the top of the market, it’s not there.”
 
Dr Wilson said house buyers priced out of the east might be turning their attention to northern suburbs such Moonee Ponds, where 92 per cent of the 25 houses sold at auction. 
 
Kensington-based agent Lou Rendina said he had seen younger families moving to Moonee Ponds and rejuvenation of the area.
 
He said the suburb was becoming more discovered as new cafes, restaurants and popular food chains open on Puckle Street, which was attracting a younger demographic. 
 
The suburb is also home to Penleigh and Essendon Grammar School, with Lowther Hall Anglican Grammar School around the corner. 
 
Compared with surrounding suburbs, Mr Rendina said Moonee Ponds had more period homes and was strategically laid out so all the residential streets were close to the junction.
 
The above is an extract from:
http://www.domain.com.au/news/melbourne-auctions-the-best-suburbs-for-buyers-and-sellers-20150924-gjts0b/
 
Four C Realty
Caroline He