REIV: Regional auctions hold their own

While the auction market in Metropolitan Melbourne has been sluggish during the first three quarters of 2018, with fewer auctions held and low clearance rates, Regional Victoria is holding its own.

Coming off the property boom of the past few years, Regional Victoria has hosted a similar number of auctions so far in 2018 compared with the same period in 2017 with 1985 and 2099 respectively. The success rate for 2018 has been even higher than 2017 with a 69 per cent clearance rate at 30 September 2018 compared with 66.2 per cent at the same period for 2017.

In Regional Victoria, 1369 homes have sold under the hammer so far in 2018.

The Geelong region continues to lead the Regional Victorian auction market with the top five towns for auction volume all being located in the region. So far this year, Belmont has hosted the most auctions, 123, with 107 homes sold via auction in the town leading to a high clearance rate of 87 per cent.

Eighty-four auctions were held in Highton (57 sales), 80 were held in Geelong West (55 sales), there were 69 auctions in Newtown (46 sales) and 65 in Torquay (55 sales).

The top three auctions sales in Regional Victoria so far in 2018 have all fetched more than $2 million. The most expensive home sold under the hammer was a four-bedroom architecturally-designed home on 50 acres in Mount Franklin with sweeping views which fetched $2.55 million.

Trentham is home to the second most expensive property to sell for big bucks under the hammer in 2018: an idyllic 26-acre property at 220 Mulcahys Road which went for $2.2 million. A three-bedroom house next to the Barwon Heads Golf Club rounded out the top three, selling for $2.15 million in May 2018.

There were also some budget buys in Regional Victoria with properties selling under the hammer for as little as $22,250 for a two-bedroom renovator’s delight in Donald. A fire-damaged home at 7 McBain Street Swan Hill sold via auction for $38,000 and a three-bedroom house located at 65 Bree Road, Hamilton fetched $62,000 at auction.

The REIV expects around 950 auctions to take place in Regional Victoria during the final quarter of 2018.