This article is from the Australian Property Journal archive
THE Melbourne residential auction market is beginning to balance out following a rollercoaster ride over the past 12 months.
Auctions clearance rates appear to be stabilising around 70%, after skyrocketing to a high of 90% and falling to low levels of 50% in the past year.
According to the REIV, the clearance rate last Saturday was 72%, compared to 70% in the previous weekend. There were 603 auctions reported with a total of 433 selling and 170 being passed in, 90 of those on a vendors bid. This weekend last year saw 568 auctions and a clearance rate of 85%.
Meanwhile independent data from Australian Property Monitors shows the clearance rate for Melbourne is hovering between the mid to high 60% level.
CEO Enzo Raimondo said this spring will be one when buyers have good opportunities and vendors achieve healthy results.
“This is sort of balanced residential auction market Melbourne has not witnessed for a few years,” he added.
The total value of properties sold via auction was $275.25 million and the median price for a house was $721,000 whilst the median apartment price was $560,000. The private sales market had 543 transactions totalling $348.27 million.
According to APM’s Home Price Guide, the dearest property sold was a four bedroom house in Malvern for $3.71 million and cheapest was a three bedroom townhouse in Whittlesea for $230,000.
Over the next fortnight the REIV expects around 1430 auctions.
In Sydney, the auction market has ebbed below the 60% mark, according to the Home Price Guide.
Last Saturday there were 341 auctions and 160 sales representing a clearance rate of 57.8% — compared to 438 auctions and 262 sales and a clearance rate of 66.7% in the prior weekend.
In the same period last year, Sydney reported 325 auctions and 209 sales, resulting in a clearance rate of 69.7%.
Last weekend’s total sales were $121.9 million down from $201.4 million in the previous weekend. Meanwhile the most expensive property sold was a five bedroom house in Darlinghurst for $2.54 million and cheapest was a two bedroom villa at Narara for $205,000.
In the smaller auction markets of Adelaide, there were 30 auctions and 17 sales totalling $12.3 million. This is one of the best results recorded in almost a year.
Brisbane had 31 auctions and four sales totalling $1.4 million.
Australian Property Journal
