This article is from the Australian Property Journal archive
MELBOURNE’S residential auction clearance rate has slumped below 60% last weekend despite fewer properties being offered for sale.
According to the REIV, of the 518 auctions reported 292 properties sold and 226 were passed in, 140 of those on a vendors bid, resulting in a clearance rate of 56%. There were 81 auctions which have not reported a result.
This is lower than the year to date clearance rate of 61% and less that the comparable weekend last year when there was 776 auctions reported with a clearance rate of 75%.
The clearance rates continue falling despite fewer houses being offered for sale. The same weekend last year there were 820 auctions and the clearance rate was around 72.1%, australian Property Monitors’ Home Price Guide.
REIV CEO Enzo Raimondo said conditions have clearly shifted in buyers favour again and this will continue to be the case over the rest of May with an average of 694 auctions each weekend.
However he noted demand continues to be stronger in the inner eastern and southern suburbs, where clearance rates are in the high 60s.
The total value of auction sales was $198.19 million. Meanwhile there were 550 private sales totalling $267.54 million.
Meanwhile in Sydney last weekend, there were 207 auctions reported and 140 sales resulting in a clearance rate of 60.1%, according to APM. This is compared to 448 auctions and 320 sales in the same weekend last year.
The total value of properties sold last weekend was $109.3 million compared to $277 million last year.
Adelaide had 10 auctions and four sales totalling $1.1 million and Brisbane had 23 auctions and five sales totalling $1.2 million.
Australian Property Journal
