This article is from the Australian Property Journal archive
THE residential property auction clearance rates in Melbourne and Sydney is improving, after a slow start.
According to the REIV, there were 772 auctions last weekend in Melbourne and 484 properties sold. In the previous weekend there were 623 auctions and in the same period last year, there were 994 auctions.
The auction clearance rate was 63% from 57% in the previous weekend and is almost on par with same period last year of 64%. However it remains below the same weekend in 2010, when 979 properties went under the hammer and the clearance rate was 87%.
Last weekend the highest number of auctions was held in Prahran, Richmond and South Yarra.
CEO Enzo Raimondo said in light of the increased number of auctions this result provides an indication that demand is gradually improving this year.
The total value of auction sales was $354.81 million.
Last weekend 288 properties were passed in of which 189 were on a vendor bid. Meanwhile 102 auctions did not disclose a result.
CEO Enzo Raimondo said with a full months’ auction volumes recorded, it is now apparent that the overall number of listings is lower, around 17% below the average between 2007 and 2011. This year there will be around 1,900 auctions in February compared to the five-year average of 2,285.
Volumes remain high next weekend with 860 residential auctions scheduled.
Melbourne’s private sales market recorded 562 transactions totalling $263.91 million.
In Sydney the REINSW said the clearance rate has improved to 62%, from 56% in the previous weekend and 49% at the start of the season three weeks ago.
There were 590 properties auctioned and 365 sold, with 105 selling prior to the auction, 246 at auction and 14 after auction, totalling $222.39 million.
There were 225 properties which did not sell, with 145 auctions recording ‘no result’ whilst 39 properties were passed in on a vendors bid.
In the same weekend last year, Sydney recorded 619 auctions and 359 sales resulting in a clearance rate of 60.6%, according to Australian Property Monitors’ Home Price Guide.
APM’s Home Price Guide also shows Sydney’s auction sales are below the same weekend last year of $331.4 million.
REINSW CEO Tim McKibbin said the result is promising sign that the NSW auction market may continue to see the modest improvement. Meanwhile Sydney’s private sales market recorded 463 transactions totalling $223.99 million.
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