Domain Group data shows that unlike Sydney home sellers, Melbourne sellers rarely negotiate with buyers before auction day, preferring instead to see the campaign through its end. Only 15.4 per cent of Melburnians agreed to sell prior to their scheduled auction in June. This is half than the proportion in Sydney.
"Melburnians are more attached to auctions, to that sense of letting the market decide," said Domain Group chief economist Andrew Wilson. "It's a cultural connection that we know has been particularly true in higher-priced inner and middle suburbs, but one that has increasing spread out to the outer suburbs."
Among all the suburbs in the city, Port Melbourne sold the most properties under the hammer in June at 25.
"Everything you're selling in Port Melbourne has multiple buyers," said Marshall White auctioneer Michael Paproth. "(Selling before) is like going to a party and drinking the punch, steering clear of the good stuff. You're at a party, you might as well enjoy the night."
However, there are a handful of suburbs where sellers have agreed to take offers early. For instance, 41.67 per cent of homes were sold prior to auctions in Montmorency. Other Melbourne suburbs sporting a high rate of pre-sold homes include Moonee Ponds at 36.36 per cent, Hoppers Crossing at 33.33 per cent, and Dandenong North at 30.77 per cent.
According to Scott Nugent of Barry Plant Eltham, there were more buyers in Montmorency than homes for sale, and they would come in with huge early offers to avoid missing out.
"A lot of the time it's not even about buying the house, but buying into the great lifestyle and community of Monty," he said.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker