Auction clearance rates rise, but renters lose ownership dream

The weekend’s auction results have posted strong clearance rates, with Melbourne’s results even beating those seen on the same weekend in 2006, when the property boom was in full swing.

According to figures from the Real Estate Institute of Victoria, Melbourne recorded a clearance rate of 79%, with 442 auctions and 347 sales reported. Total sales were $190.97 million.

“This result should provide a great deal of confidence for vendors and those considering selling in the next few months,” REIV president Enzo Raimondo said in a statement.

Sydney also posted a strong clearance rate at 65%, with 257 properties on the market and 180 sales totalling at $109.9 million.

Adelaide had 21 properties up for auction, of which 14 sold for a clearance rate of 67%. Brisbane saw 40 properties at auction, of which 18 sold for a total of $6.3 million.

Meanwhile, a new survey has shown 57% of Victorian renters believe they will never be able to own a house of their own. The Galaxy poll also shows that 21% of adults earning between $40,000 and $70,000 believe they will never own a home.

Brian Welch, chief executive of the Master Builder’s Association, which commissioned the research, told News.com.au that the survey suggests future housing will be owned by only those who are wealthy.

“Local, state and federal governments of all political persuasions have not covered themselves in glory when it comes to improving housing affordability for the average Victorian,” Welch says. 

Finally, new Australian Bureau of Statistics figures show that the size of the average Australian home has increased by a third in about 20 years. The data shows houses have increased by 32.7%, from 181 square metres in 1987-88 to 239 square metres in 2007-08.

Canberra homes have been dubbed the largest, with the average house measuring in at 252 square metres.

South Australians have the smallest homes, with the average new home coming in at just 191 square metres, a decrease of 20 square metres in the past 20 years.

Related stories:

• Housing market battered in first quarter: Report
  
• Auction results offer hope for property sector