Demand for auction property subdued in Victoria

Home loans customers in parts of Australia have seen the number of properties being snapped up at auctions decline.

According to the Real Estate Institute of Victoria (REIV), many attendees at house auctions are reluctant to shell out on a new abode, with plenty merely acting as spectators.

This is despite a recent cut to interest rates sanctioned by the Reserve Bank of Australia.

Leaders at the REIV stated the Melbourne-based auction held over the weekend (November 19th and 20th) recorded a clearance rate of just 53 per cent. This marked a two per cent rise on the previous weekend, but was four per cent down on the corresponding date in 2010.

"The Melbourne auction market has been typified by consistently moderate levels of demand this year and this weekend is no different," commented REIV chief executive officer Enzo Raimondo.

However, demand for property in the Northern Beaches region of Sydney appears to have remained high, as the Sydney Morning Herald reported that prices in the area grew by 3.2 per cent in the six months leading up to September.

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