This article is from the Australian Property Journal archive
THE residential property auction market is showing signs that it is missing a few gears.
Sydney
Preliminary data shows Sydney’s clearance rate last weekend was 68.4%, which slightly lower than the 69% recorded in the previous weekend, and significantly under last year’s rate of 80%, according to Domain Group’s Australian Property Monitors.
There were 721 listings, 484 auctions and 368 sales totalling $377.7 million last weekend compared to 676 listings, 520 auctions and 363 sales totalling $340 million.
In the same weekend last year, there were 676 listings, 598 auctions and 496 sales totalling $689.9 million.
Sydney recorded a median auction price of $1,247,000 on Saturday, higher than the $1,150,000 reported the previous weekend and 2% higher than the $1,222,500 recorded over the same weekend last year.
Domain chief economist Andrew Wilson said Sydney’s auction market is failing to keep up with last year’s spring season, and the clearance rates remains below the season average.
Wilson said the weaker auction market has had an impact on prices.
“Declining auction clearance rates over recent months have resulted in a sharp fall in Sydney house prices, with the boom-time results of recent years having now clearly ended.
“Domain Group data shows that the Sydney median house price fell 1.9% over the September quarter to $1,167,516, which was the first decline since December 2015 and only the second quarterly fall in house prices in more than years. Sydney unit prices also eased over the quarter, down by 0.8% to $732,321,” he added.
Wilson said although home prices are now falling, the underlying drivers of the Sydney housing market remain positive.
Melbourne
Melbourne delivered a clearance rate of 75% last weekend, according to the REIV.
Preliminary data shows there were 858 auctions of which 646 homes sold, whilst 212 being passed in, 104 of those on a vendor bid.
The clearance is a slight improvement on the previous weekend’s 74% from 933 auctions, but below the 77% from 1030 auctions reported last year.
According to REIV, this year has surpassed 2015 as the strongest auction market with a record 31,500 homes going under the hammer and 24,150 selling.
The total value of auction sales was $602.30 million. According to APM, the median house and unit sale price was $916,000 and $625,000.
Wilson said although consistent solid auction clearance rates in Melbourne have predictably translated into more house price growth, the rate of growth has declined sharply.
Domain reports that the Melbourne median house price increased by 1.3% over the September quarter to a new record high of $880,902, which is the lowest rate since the September quarter 2014 and well below the 4.1% reported over the previous June quarter.
Canberra
Canberra’s auction market appears to have stabilised, reporting a clearance rate of 68% last weekend, according to APM.
There were 47 listings, 34 auctions and 23 sales. The total value of auction sales was $16.83 million and a median price of $735,000 was recorded.
Brisbane
Brisbane saw another surge in listings last weekend.
There were 121 listings and 66 properties went under the hammer with 32 selling, resulting in a clearance rate of 48%.
The total value of properties sold was $14.56 million with a median price of $750,000.
Across the state, 354 property listings and 258 properties were auctioned, with 72 sales whilst 136 homes were passed in.
Perth
Perth had 47 homes scheduled for auction and 22 went under the hammer, resulting in 10 sales. There were nine homes that were passed in.
Adelaide
Adelaide recorded the strongest clearance rate last weekend of 79%.
There were 72 listings and 33 homes were auctioned with 26 selling.
The total value of sales was $13.018 million and a median of $700,000 was recorded.
Darwin
There were 12 scheduled auctions however five went ahead and two homes sold.
Hobart
Hobart had seven listings and four properties went under the hammer, resulting in two sales.
| Auction highlights this week Saturday, 14 October 2017 (Source: APM) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 144A Hewlett St, Bronte NSW 2024, 4 br House, PhillipsPantzer Donnelley | $6,430,000 |
| Melbourne | 307 Beaconsfield Pde, Middle Park VIC 3206, 4 br House, Greg Hocking Holdsworth | $6,370,000 |
| Adelaide | 15 Jellicoe St, Linden Park SA 5065, 3 br House, Harris Real Estate – Glenelg | $2,175,000 |
| Brisbane | 71 Moreton St, New Farm QLD 4005, 4 br House, Belle Property New Farm | $2,760,000 |
| Canberra | 25 Fortitude St, Red Hill ACT 2603, 4 br House, Peter Blackshaw Real Estate Manuka | $1,700,000 |
| Most affordable | ||
| Sydney | 8/660 Barrenjoey Rd, Avalon Beach NSW 2107, 1 br Unit, Purplebricks NSW | $400,000 |
| Melbourne | 120/6 Acacia Pl, Abbotsford VIC 3067, 1 br Unit, Biggin & Scott Richmond | $313,000 |
| Adelaide | 3/461 Portrush Rd, Glenside SA 5065, 2 br Unit, HAR Brock Williams | $285,000 |
| Brisbane | 27 Kingfisher Ct, Regency Downs QLD 4341, 3 br House, Eld Gatton | $235,000 |
| Canberra | 5/156 Knox St, Watson ACT 2602, 2 br Unit, McGrath Estate Agents Dickson, Projects | $243,000 |
Australian Property Journal
