The Real Estate Institute of Victoria said the number of properties sold at auction yesterday rose to 64% from the more than three-year low of 59% it hit last weekend.
The rebound comes as a growing number of real estate agencies begin closing, selling up or merging in a bid to survive Victoria's property slump.
REIV figures show that more than 100 estate agencies have shut down or changed ownership so far this year, up nearly 28% on the same time last year.
The shake-up may be just the start of a long-term trend in the industry. Macquarie Bank research released last month indicates that 10%-15% of Australian real estate agencies are considering selling part or all of their businesses, compared with just 3% late last year.
REIV chief executive Enzo Raimondo said an increasing number of agencies — particularly small, independently run firms — were facing tough decisions about whether they could continue to operate.
"Some of those agencies that sprang up to take advantage of the good times probably aren't prepared to handle the bad times," he said.
The Sunday Age has found that several larger agencies and franchise groups have closed or consolidated at least eight offices across Victoria this year.
David Morrell, of buyer's advocacy group Morrell & Koren, said the extent of the cost-cutting, job losses and office closures was being concealed by some operators in a bid to protect their image.
The Age | Chris Vedelago | 10 August 2008
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