Sydney and Melbourne have both been leading the charge in property auctions for this year. These 2 heavyweights are clawing their way to the top with the high property demand amidst low interest rates and high property values.
Melbourne is taunted as the most aggressive among the two, as it boasts of a steady supply of available properties on the market. This can be a problem though, as property returns are lower than the usual because of oversupply in the market, currently at a low of 4.4%. In terms of properties sold based on average times, Sydney takes the lead as homes are snatched off the market at an average of 27 days, as compared to Melbourne’s 34.
In terms of property values, Melbourne has the edge in affordability as the median auction price sits at $700,000, comfortably lower compared to Sydney’s $900,000. For auction clearance rates, Sydney has the advantage as values hover between 80 – 85%. Melbourne’s clearance rates dropped to 67% the previous week.
Sydney may have won this round based on the values stated, but Melbourne is not going down without a fight, as it commits to adding around 110,000 apartments through 2031.
Read more about this on the My Wealth Hot Topic website.