Melbourne’s auction market has rebounded strongly, recording an average final auction clearance rate of 67% in May, the strongest result since mid-2023.
As illustrated in the following chart, the bounce in Melbourne’s auction clearance rate has been accompanied by a corresponding rise in dwelling values, which increased by 0.8% in May, according to PropTrack.
The rising interest in Melbourne property makes sense, given it has become the cheapest major capital city market in the nation.
The following table from PropTrack shows that Melbourne’s median dwelling value of $782,000 at 31 May was 11% below the capital city median and the lowest out of the five major capital cities.
Melbourne’s relative affordability follows modest growth of only 17.6% since the onset of the COVID-19 pandemic in March 2020, versus 44.8% growth across the combined capital cities.
Cotality’s dwelling values index shows similar results, with Melbourne’s median value of $791,303 as of 31 May tracking 13% below the combined capital city median and the lowest of the five major capital cities.
Cotality has recorded only 12.8% growth for Melbourne over the past five years, versus 38.1% growth across the combined capital cities.
As shown below, Melbourne’s growth over the past five years has been the lowest in the nation.
Finally, Domain’s quarterly house price series shows that Melbourne’s median house price relative to the other capital cities is tracking at a cyclical low at a level not seen since the mid-2000s.
The bargain hunters are moving in, which explains the strong bounce in auction clearances.
