There is much written about the faltering Victorian property market and whilst some predict the market will remain lack lustre and even experience further declines in the year ahead it is not all doom and gloom when it comes to Melbourne’s property market. Whilst wider concerns over job security in the manufacturing sector and sluggish consumer spending are weighing on the market as a whole, clearance rates show that some suburbs are clearly fairing well in a soft market.
Who’s on top?
Hawthorn is one suburb showing resilience, recording stronger than average clearance rates of 76.9% in the first quarter of 2011 and 80.9% in Q1 of 2012. Glen Iris and Malvern East also experienced similar successes with clearance rates averaging 72.1% and 71.4% in Q1 of 2011 and 76.3% and 73.2% respectively in 2012.
But not all suburbs have experienced the same dream run, others have shown renewed interest from buyers after a period of soft market conditions. In Q1 2011, Carnegie and Richmond clearance rates fell to 43.9% and 54.5% respectively however with property prices in these areas now more affordable than ever, buyers are taking advantage of current market conditions. As a result clearance rates have risen to 69.8% and 75.3% respectively in Q1 of 2012.
Clearance Snapshot Clearance Rates 2011 vs Q1 2012.
Not good news all round
At the other end of the spectrum, some suburbs have seen clearance rates decline year on year, whilst others have remained soft. Coburg’s clearance rates have marginally fallen from 72.1% to 66% year on year – despite this the suburb continues to trend above the Victorian market as a whole. Whilst Reservoir has continued to be affected by soft market conditions and supply outweighing demand. Clearance rates for the suburb have risen from 47.8% in Q1 2011 to 50% in Q1 2012 but are trending well below the market average.