By Robert Larocca

Melbourne auction preview - RP Data

There are 673 auctions scheduled this week in Melbourne compared to 677 for the same time last year. Buyers are clearly in the market for capital gains, as yields remain low at 3.3 per cent for houses; the lowest of all capital cities.

Low yields translate into good conditions for renters in many parts of Melbourne. Recently released rental market data showed that the median advertised rent for a house in Melbourne was stable in July at $447 per week and has risen by 2.4 per cent in the previous twelve months.

This means that the median advertised rent for houses is not keeping pace with the CPI, 3.2 per cent in Melbourne, for most relevant period. The comparable data for units showed a drop of a dollar a week to $397 over the month and an increase of 1.6 per cent in the year. This reflects the adequate levels of supply in the higher density market.

The average time on market for houses sold last month rose from 44 to 46 days. Vendor discounting rose, but only slightly from -5 per cent the previous week to -5.1 per cent last week.

Key data

  • Clearance rate week ending 3 August: 69%
  • Melbourne auctions expected week ending 10 August: 673
  • Melbourne private sales time on market week ending 3 August: 46 days (houses)
  • Melbourne vendor discounting market week ending 3 August: -5.1% (houses)
  • Listings being prepared for market are 0.7% higher in month ending 3 August (seasonally adjusted)

Robert Larocca
RP Data Victoria Housing Market Specialist

Source: RPD

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