Residential property auction market wrap

VENDORS were hoping the second weekend of spring would begin to warm up the auction market, however buyers remain cautious, spooked by the Commonwealth Bank and ANZ raising home loan rates last week.

Last weekend across Australia, a preliminary clearance rate of 57.9% was reported, according to Domain.

The number of listings increased compared to the previous weekend, to 1,584 and 1,075 homes were auctioned, resulting in 674 sales totalling $506.5 million.

The soft market reflects buyers cautiousness after the CBA and ANZ raised their interest rates out of cycle with the Reserve Bank last week, which comes after Westpac increased its home loan rates a week earlier.

In the previous weekend, there were 1,476 listings and 1,205 homes went under the hammer resulting in 698 sales totalling $534.1 million and representing a clearance rate of 52.1%.

Vendors were hoping the winter lull would begin to wear off as seen in the same weekend last year, when the clearance rate was 64.7% from 1,781 listings, 1,609 auctions and 1,110 sales totalling $1,256.5 million.

Sydney

Sydney returned a preliminary clearance rate of 56% from 535 listings, 298 auctions and 200 sales, according to Domain.

Sales totalled $160.5 million and the median house and unit sales prices were $1,462,500 and $995,000 respectively.

AMP Capital chief economist Shane Oliver expects the final clearance rate will be around 50%, which is unchanged from the previous weekend’s 50%.

In the previous weekend Sydney had 555 listings, 399 auctions and 246 homes sold totalling $203.5 million. The median house and unit sale prices were $1,303,000 and $870,000 respectively.

Oliver said the market continued to show weakness, but it is not crashing.

He said sales volumes are running around 30-40% below a year ago.

In the same weekend last year, Sydney’s clearance rate was 63% from 688 listings, 550 auctions and 396 homes sold. Auction sales totalled $551.1 million and the median house and unit sale prices were $1,460,000 and $925,001.

Melbourne

Similarly, Oliver said the Melbourne market was not crashing but remains weak and sales volumes are also running 30-40% below a year ago.

He expects the market will continue to be weak given tighter lending standards, rising supply, lower capital growth expectations.

Melbourne recorded a preliminary clearance rate of 60.4% last weekend, according to Domain. There were 822 listings, 637 auctions and 397 homes sold under the hammer. Sales totalled $300.8 million and the median house and unit sale prices were $915,500 and $621,000 respectively.

Oliver expects the final clearance rate will be around 55%, which is on par with the previous weekend’s 55.1% from 726 listings, 652 auctions and 376 homes sold.

Sales totalled $290.1 million and the median house and unit sales prices were $912,500 and $620,000.

In the same weekend last year, the clearance rate was 68.4% from 887 listings, 873 auctions and 609 sales, totalling $627.2 million. The median house and unit sales prices were $1,00,001 and $566,000 respectively.

The REIV reported a preliminary clearance rate of 64%. There were 668 auctions, 428 homes sold, whilst 240 properties were passed in, 121 were on a vendor’s bid. Auction sales totalled $430 million and at the same time, there were 216 private deals totalling $148 million.

In the previous weekend, the clearance rate was 60% from 704 auctions and in the same weekend last year, it was 74% from 873 auctions.

Canberra

Canberra reported a preliminary clearance rate of 62%, according to Domain. Of the 59 scheduled auctions, 48 homes went under the hammer and 31 sold.

Sales totalled $21.79 million and the median sale price was $772,500.

Corelogic reported a clearance rate of 64% from 69 listings, 42 auctions and 27 sales whilst 13 properties passed in.

Brisbane

The clearance rate in Brisbane remains at a low of 43%. According to Domain, there were 101 listings, 57 homes were auctioned and 26 sold.

Sales totalled $12.54 million and the median sale price was $800,000.

Across Queensland, there were 289 listings and 146 auctions were held, resulting in 46 sales whilst 76 properties were passed in, resulting in a clearance rate of 38%, according to Corelogic.

Adelaide

After weeks of strong performance, Adelaide’s clearance rate slumped to 49% last weekend, according to Domain.

Adelaide had 67 listings, 35 auctions and 20 sales totalling $10.757 million. The median sale price was $656,000.

However, across the state, the clearance rate was stronger at 64% from 93 listings, 55 auctions and 35 sales, according to Corelogic.

Perth

Western Australia’s clearance rate declined to a low 19% last weekend, according to Corelogic.

There were 40 listings but only 16 homes went under the hammer, of which three sold whilst 12 were passed in.

Darwin

The Northern Territory posted a clearance rate of 0%. Three properties were listed and two homes were auctioned but they were passed in.

Hobart

There were two listings across Tasmania last weekend and one property sold under the hammer.

Auction highlights this week Saturday, 8 September 2018 (Source: Domain)
City	Location	Value Sold
Most expensive
Sydney	173 Underwood St, Paddington NSW 2021, 4 br House, The Agency Inner West	$6,050,000
Melbourne	18 Selborne Rd, Toorak VIC 3142, 4 br House, Marshall White Stonnington	$6,010,000
Adelaide	137 Grant Av, Toorak Gardens SA 5065, 4 br House, Klemich Real Estate – RLA174424	$1,450,000
Brisbane	7 Drury St, Windsor QLD 4030, 5 br House, HAR Solutions Group	$1,360,000
Canberra	278 Duffy St, Ainslie ACT 2602, 4 br House, LJH Dickson	$1,595,000
Most affordable
Sydney	84 Wilkes Cr, Tregear NSW 2770, 4 br House, R&W Rooty Hill	$417,000
Melbourne	9/6 Newman Av, Carnegie VIC 3163, 1 br Unit, Buxton Bentleigh	$290,000
Adelaide	27 Burke St, Hackham SA 5163, 5 br House, HAR Tagni	$227,000
Brisbane	4 Franke Ct, Kingston QLD 4114, 4 br House, RW Logan City	$245,000
Canberra	8/10 Marou Pl, Ngunnawal ACT 2913, 3 br Townhouse, LJH Belconnen	$453,000

Australian Property Journal