- 84.8% clearance rate for February beats an 84% record back in 2010
- 17 suburbs recorded a 100% clearance rate
- REIV President has warned the new Residential Tenancy Act will impact investors
Data from the Real Estate Institute of Victoria (REIV) shows February 2021 saw over 3000 auctions recorded with an 84.8% clearance rate.
This rate is the highest in eleven years, beating an 84% clearance rate record from 2010.
Staggeringly, 17 suburbs cleared 100% of listings which included inner suburbs such as Hawthorn East, Collingwood, Fitzroy North, Seddon and Brunswick East.
Rowvile, 27km east of Melbourne, also recorded a 100% clearance rate.
Reservoir, Coburg and Bentleigh East were the top-selling auction suburbs for last month clearing 44, 37 and 35 auctions respectively. 11 suburbs also doubled their auction sales compared to February 2020 – just before the pandemic hit Australia.
A variety of suburbs such as Doncaster, Fitzroy North, St Kilda West, Hoppers Crossing and Templestowe are on the REIV’s best improvement list compared to auction sales last year.
Despite lockdowns, international border closures and tightened purse strings, REIV President Leah Calnan, says the results show the State’s housing market has remained resilient.
“The pandemic, while challenging, has not spelled disaster for the Victorian property market as many doomsayers said it would.“
Leah Calnan, REIV President
Measures such as incentives for First Home Buyers, mortgage repayment holidays and low-interest rates have all significantly contributed to the past year’s performance, according to the REIV.
Additionally, a huge increase in demand statewide has occurred since Victoria’s multiple lockdowns, during which thousands of auction were cancelled due to restrictions.
Ms Calnan, however, has warned though the ‘times are ripe’ for those in the Victorian property market, upcoming legislative changes will have an impact on investors.
“While the Victorian property market is hot, there will be pain ahead for mum-and-dad investors with changes to the Residential Tenancy Act coming into effect at the end of this month.”
Leah Calnan, REIV President
In a statement, REIV argues the changes will result in greater red tape and an increase in ownership costs for investors.
