Residential property auctions remain in hot form

DESPITE the major banks recently raising interest rates out of cycle, homebuyers remain undeterred and were out in force on the weekend snapping up more than $1.6 billion worth of properties at auction.

Sydney

The residential property auction market was in hot form on weekend in Sydney, recording a strong clearance rate of 80.2% in spite of an increase in listings, according to Domain’s Australian Property Monitors.

There were 880 listings and 605 properties went under the hammer which resulted in 514 sales totalling $682.2 million. The median auction house and unit prices recorded were $1,512,000 and $940,000 respectively.

Sydney has now reported six weekend clearance rates above 80% over the past eight weeks.

In the previous weekend, the clearance rate 76.7% from 720 listings, 610 auctions and 505 sales totalling $551.2 million. The median auction house and unit prices were $1,457,166 and $880,000 respectively.

There were no comparative figures for the same weekend last year due to the holiday, so only 50 properties were listed with 37 auctioned and 27 sold, representing a clearance rate of 61.4%, totalling $32.1 million.

Melbourne

Melbourne recorded a strong clearance rate of 82% last weekend from a bumper 1,192 auctions reported, according to the REIV. There were 974 properties sold totalling $990.7 million whilst 218 were passed in.

REIV president Joseph Walton said Prahran was the city’s top performer on the weekend with 18 homes sold at auction.

Bundoora and Torquay were also strong performers, recording 100% clearance rates from 13 auctions in each.

At the same time, Melbourne recorded 286 private sales totalling $182.46 million.

According to the REIV, 818 houses were sold under the hammer with a median price of $1,042,000; 342 apartments were also knocked down with a median price of $699,000 and 25 vacant land sold with a median of $521,000.

Walton said the 2017 auction market is one of the strongest in recent years with volumes up 13% on the same period last year.

“Multiple auction records fell in February when more than 3,200 homes went to auction and close to 2,570 sold under the hammer,” he said. “High auction volumes have continued throughout March with the current clearance rate of 79% signalling ongoing buyer and vendor confidence.”

After last weekend, more than 7,580 homes would have been auctioned this year, up from 6719 for the same period in 2016. A further 1,000 auctions are scheduled next weekend.

TOP AUCTION SUBURBS BY VOLUME – YTD

Suburb	Total Auctions	Sold at auction	Clearance Rate
RESERVOIR	81	66	81.50%
ST KILDA	76	49	64.50%
CRAIGIEBURN	72	55	76.40%
GLEN WAVERLEY	65	48	73.80%
EPPING	61	51	83.60%
RICHMOND	61	44	72.10%
BENTLEIGH EAST	60	48	80.00%
MALVERN EAST	58	40	69.00%
KEW	58	48	82.80%
CHELTENHAM	55	48	87.30%
BRIGHTON	33	26	78.80%

TOP AUCTION SUBURBS BY SALES – YTD

Suburb	Total Auction	Sold at auction	Clearance Rate
RESERVOIR	81	66	81.50%
CRAIGIEBURN	72	55	76.40%
EPPING	61	51	83.60%
ST KILDA	76	49	64.50%
GLEN WAVERLEY	65	48	73.80%
BENTLEIGH EAST	60	48	80.00%
KEW	58	48	82.80%
CHELTENHAM	55	48	87.30%
RICHMOND	61	44	72.10%
PRESTON	55	42	76.40%

Source: REIV

Brisbane

Brisbane had 344 auctions but only 70 homes sold under the hammer whilst 109 were passed in, resulting a low clearance rate of 43%.

According to APM’s preliminary data, the total value of auction sales was $21.86 million and the median price achieved was $772,000.

The most expensive property sold was at 34 Gordon St in Hawthorne for $2,225,000.

Adelaide

The Adelaide market recorded a clearance rate of 68% from 134 auctions which saw 43 homes sold.

Preliminary data shows $20.52 million worth of properties sold under the hammer and the median price recorded a $707,500.

The most expensive property sold was of a six bedroom house at 6 Penfold Rd in Magill for $1,412,000.

Canberra

The nation’s capital recorded a strong clearance rate of 78%. There were 105 auctions and 65 properties sold, totalling $41.79 million.

According to APM, the median price was $817,500. A three bedroom house at 8 Brown St Yarralumla was the most expensive property sold, at $2,590,000.

Perth

In Perth, there were 42 auctions and only four properties sold under the hammer.

The most expensive property sold at auction was at 150 Lefroy Rd Beaconsfield for $750,000.

Darwin

There were only five auctions in Darwin and one home sold, which also happened to be the most expensive sale at the weekend. The four bedroom house at 24 Haritos St Wanguri was snapped up for $635,000.

Hobart

Hobart had seven auctions and four sales, resulting in a clearance rate of 71%.

The most expensive property sold at auction was of a two-bedroom unit at 1/70 Esplanade in Rose Bay for $390,000.

Although the most expensive sold was at 95 Arthur St in East Launceston for $645,000, which changed hands prior to the auction.

Auction highlights this week Saturday, 25 March 2017 (Source: APM)
City	Location	Value Sold
Most expensive
Sydney	57/10-14 Terry Rd, Dulwich Hill NSW 2203, 1 br Unit, Gerber Properties	$8,620,000
Melbourne	23 Kinane St, Brighton VIC 3186, 5 br House, Marshall White Brighton	$5,530,000
Adelaide	6 Penfold Rd, Magill SA 5072, 6 br House, Belle Property Adelaide City	$1,412,000
Brisbane	34 Gordon St, Hawthorne QLD 4171, 3 br House, Archived Ray White Rural (Queensland)	$2,225,000
Canberra	8 Brown St, Yarralumla ACT 2600, 3 br House, RW – Kingston	$2,590,000
Most affordable
Sydney	24/98-102 Victoria St, Werrington NSW 2747, 2 br Townhouse, Property Central Penrith	$392,000
Melbourne	5/446 Albion St, Brunswick West VIC 3055, 1 br Unit, Nelson Alexander Brunswick	$249,000
Adelaide	42 Rose St, Ottoway SA 5013, 3 br House, Power Real Estate	$255,000
Brisbane	4 MacKellar Dr, Boronia Heights QLD 4124, 3 br House, Your Address Real Estate	$295,000
Canberra	36 Heighway St, MacGregor ACT 2615, 3 br House, Luton Properties – Weston Creek	$495,000

Australian Property Journal