There’s 1071 auctions scheduled across Victoria this week including 1046 auctions in Greater Melbourne. Picture: David Caird.
The cumulative impact of this year’s three interest-rate hikes is expected to sharpen buyers’ caution as 1071 Victorian homes go under the hammer this week.
The Reserve Bank lifted Australia’s cash rate to 4.35 per cent on Tuesday, following earlier rate rises in February and March.
PropTrack senior economist Eleanor Creagh said that while a single 25 basis point increase would not change market conditions overnight, auction markets were already showing
lower clearance rates and higher numbers of homes being withdrawn.
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“Weaker auction results are a signal that higher borrowing costs and high levels of uncertainty are beginning to weigh more meaningfully on homebuying demand,” Ms Creagh said.
“Buyers are increasingly reassessing how high rates may ultimately lift and this week’s rate rise is likely to weigh on sentiment at this weekend’s auctions, because it reinforces the message that interest rates may stay higher for longer than many buyers had anticipated earlier in the year.”
Victoria recorded a 56 per cent auction clearance rate last week, compared to 66.05 per cent result 12 months prior.
PropTrack senior economist Eleanor Creagh says higher borrowing costs and high levels of uncertainty are beginning to weigh more on buyers.
7 Russell St, Toorak, will be auctioned on Saturday with $8.5m-$9m price hopes.
Ms Creagh said that although the Australian government would be launching its 2026-27 budget on Tuesday, this wouldn’t immediately have much of an impact on auction clearance rates around the nation despite speculation about mooted changes to the Capital Gains Tax (CGT).
“Looking across recent budget cycles, clearance rates in the four weeks before and after budget night have generally remained relatively stable, with broader economic conditions playing a much larger role in shaping buyer behaviour,” Ms Creagh said.
A former church, at 469-475 Iron Bark Rd, Yarrambat, will also go under the hammer on Saturday.
The ex-church is set on a 4043sq m landholding.
One of the priciest Melbourne homes slated to go under the hammer this weekend is a four-bedroom house at 7 Russell St, Toorak, with an $8.5m-$9m asking range.
Forbes Global Properties’ Mike Gibson has the listing features a pool, terraced rear garden and a kitchen with granite surfaces and stainless-steel appliances.
And a former Anglican church at 469-475 Iron Bark Rd, Yarrambat will go under the hammer with $1.1m-$1.21m price hopes.
Ray White’s Shane Leete is overseeing the campaign for the ex-worship site which showcases high timber ceilings, original pews, an altar and a stained-glass window on a 4043sq m block.
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