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Outer east is tops when it comes to auctions

Eight out of 10 auctions end in success for region’s sellers

A mix of housing styles, quality schools and family-friendly amenities is driving the huge success of auctions in Melbourne’s outer east.

“We’ve had a strong strike rate of around 80 per cent since the start of the year,” Barry Plant Ringwood & Heathmont auctioneer Jay Carroll said.

“In recent weeks, only one auction property has passed in, and we are selective about going to auction.”

The outer-east region has seen the highest auction clearance rates in Melbourne, reporting almost 80 per cent in February, and home prices are rising, according to CoreLogic data..

Greater demand than supply has helped push up auction clearance rates in some neighbourhoods in the outer-east areas, a Domain report revealed.

“We have heaps of good schools, train stations, shopping centres and amenities, and these tick the boxes for buyers,” Mr Carroll said.

“There are good-sized homes, plenty of greenery and a mix of housing types for upgraders, downsizers and first-home buyers.”

He nominated Heathmont as sought after by buyers while Ringwood East homes have regained their popularity in recent months.

Mr Carroll agreed that the region’s strong clearance rate was also due to keen demand and a shortage of homes for sale.

Compared with other regions, outer-east suburbs have managed to retain strong buyer numbers even as the market softened because of rising interest rates, he noted.

The agency is still getting three or four bidders at auctions while each private listing attracts at least two buyers.

“Private sales took around two weeks last year but are taking three to four weeks now,” Mr Carroll said.

Meanwhile, a university student has bought his first home, with the help of family, at a March 18 auction.

The three-bedroom townhouse at 71 Dublin Road, Ringwood East, fetched $1.066 million with seven buyers competing.

“It appealed to many buyers because there are just two townhouses on the block and there is no body corporate,” Mr Carroll said.

“It was a quick auction rising from $800,000 to $1 million, and the property had a realistic reserve.”

The changing demographics of many outer-east suburbs was also keeping sales ticking over, Mr Carroll noted.

“There is an ageing population that is downsizing, while many young families want to be close to good schools,” he said.

“People are just getting on with the business of buying and selling properties here, and there is no doom and gloom.”