Last weekend, Melbourne experienced yet another strong clearance rate of 73.9 %. This was despite the relatively large number of auctions held.
The Melbourne market has been doing really well this auction season so far with clearances averaging 74.4 % – compared to 66 % over the same period last year. I would attribute the good results to low interest rates, improved market sentiment and also strong interest from overseas buyers (especially for the top end of the market).
There is some debate over how much property is actually being purchased by overseas buyers and that is primarily because of the lack of accurate statistics. The fact that many overseas investors are buying property through local relatives and contacts does not help. Understandably, this is something that is really hard to measure and prove.
In reality, overseas investors make up only a fraction of property sales. The large bulk of purchases are in inner and outer suburban Melbourne by local families. With the property market showing strong signs of recovering from years of flat growth, this may be the upswing in the market that triggers the next cycle of sustained property growth.
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