"Auctions are the most popular sales method in the inner city, while in the outer suburbs most sales are conducted privately."
Top 10 Melbourne suburbs ranked by percentage of sales by auction, including Elsternwick and Surrey Hills
The REIV has released data that reveals, for the first time, the suburbs where auctions are the main method of sale and those where private sales are.
This data, presented in an online clickable map, is an invaluable resource for all real estate agents and vendors.
The data will assist real estate agents and vendors as they make the decision about the most appropriate sales method for their property.
The maps clearly show that auctions are the most popular sales method in the inner city, while in the outer suburbs most sales are conducted privately. This in part explains why the median price of a home sold at auction is higher than one sold at private sale, as residential property is much more expensive in the inner suburbs.
While overall auction sales have represented around 22% of all sales in Melbourne this year, there are some suburbs with a higher number and some with less.
Suburbs where more than half the homes were sold by auction in 2011 included Elsternwick, Surrey Hills, Armadale, Richmond, Malvern, Northcote and Camberwell.
At the other end of the spectrum less than 5% of homes were sold by auction in Narree Warren, Werribee, Rowville, Craigieburn and Mooroolbark.
It is also the case that clearance rates tend to be higher in the suburbs where auctions are more prevalent.
Analysis of the data over 2010 and 2011 shows a clear trend towards private sales as the level of competition dropped. This highlights that auctions work better when there is a high level of demand, generally or for a specific property.
When teamed with data showing weekly clearance rates this information is an invaluable and unique resource for all those active in the residential real estate market. The maps are available on the REIV website.
Top 10 suburbs ranked by % sales by auction in 2011
SURREY HILLS 68%
MONT ALBERT 62%
KEW EAST 62%
CLIFTON HILL 61%
CAULFIELD NORTH 60%
Enzo Raimondo is CEO of the Real Estate Institute of Victoria.