This article is from the Australian Property Journal archive
DISRUPTION to everyday life from the coronavirus (covid-19) pandemic is increasing, but the auction market continues to attract huge crowds with almost 2,000 properties going under the hammer last weekend, although Sydney is showing signs of weakening.
National
According to Domain, a preliminary clearance rate of 69.6% was recorded across Australia. Listings surge again with Melbourne back in business following Labour Day holiday.
There were 1,921 listings, 1,292 homes were auctioned and 969 sold totalling $778.2 million. The median house and unit sale prices were $1,070,000 and $729,000.
Although the covid-19 pandemic has yet to slow the resurging auction market, AMP Capital chief economist Shane Oliver is predicting a significant slowing along with the softer economic outlook.
In the previous weekend, clearances were 67.8% from 1,168 listings, 973 auctions and 719 sales totalling $592.1 million.
Clearance rates are up from this time last year, which was only 49% from 1,479 listings, 1,231 auctions and 686 sales totalling $743.7 million.
But sales remain below the 2015-2018 periods. In the same weekend in 2018, there were 2,496 listings, 2,153 auctions, 1,428 sales totalling $1.67 billion and a clearance rate of 60.9%.
In 2017 sales totalling $1.8 billion with 2,180 listings, 1,995 auctions and 1,540 sales resulting in a 73.7% clearance rate. Meanwhile a staggering $2 billion worth of homes sold in the same weekend in 2016, where there were 2,874 listings, 2,601 auctions and 1,897 sales representing clearances of 70.2% and in 2015, clearances were 77% from 2,109 listings, 1,887 auctions and 1,502 sales totalling $1.56 billion.
Sydney
Sydney clearances slipped again since peaking around 84% in the mid-February. According to Domain, the preliminary rate was 73.4% from 644 listings, 433 auctions and 361 sales totalling $328.5 million. The median house and unit sale prices were $1,370,000 and $897,500.
Oliver expects the final rate will be around 67%, which will be the first-time clearances have fallen below the 70% mark since the auction season started this year.
He added that although sales are up around 60% a year, Sydney is showing signs of slowing and will continue to, due to the covid-19 pandemic and muted economy.
In comparison Corelogic reported the number of private sales market has shot to 1,261 last weekend, after lingering below the 1,000 mark in previous weekends
In the previous weekend, clearances were 74.5% from 678 listings, 547 auctions and 453 sales totalling $419.6 million. Last year auction sales totalled $340.5 million. There were 529 listings, 383 auctions and 250 sales resulting in a clearance rate of 51%.
In the same weekend in 2018 there were 817 listings, 626 auctions, 425 sales totalling $635.1 million and clearances of 56.5%. In 2017 clearance rates were 76.1% from 714 listings, 626 auctions and 520 sales totalling $783.1 million.
In 2016, rates were 70% from 913 listings, 812 auctions and 611 sales totalling $804.3 million and in 2015 it was 84.4% from 724 listings, 668 auctions and 588 sales totalling $708.2 million.
Melbourne
Following the Labour Day holiday, auction activity bounced back with 853 properties going under the hammer, according to the REIV. There were 609 sales and 244 homes passed in, 122 on a vendor bid, resulting in a clearance rate of 71%. Auction sales totalled $596 million and there were also 135 private transactions totalling $96 million.
The clearance rate in the previous weekend was 72% from 373 auctions and last year it was 57% from 761 auctions.
REIV data shows that so far this summer, over 5,000 homes were sold at auction, almost doubled that of last year (around 2,710). Craigieburn and Reservoir leads, each sold 74 homes through auction, while Blackburn South and Moorabbin each sold all 18 and 16 under the hammer.
According to Domain, the preliminary rate was 68% from 1,090 listings, 751 auctions and 532 sales last weekend. Auction volumes totalled $412.7 million and the median house and unit sale prices were $990,000 and $621,000.
Oliver expects the final rate will be around 61%, which is also weakening after peaking around 77% in mid-February. In the previous holiday weekend, it was 63.1% from 347 listings, 298 auctions and 200 sales totalling $141.5 million.
Although he noted that sales are around 80% higher than a year ago. This time in 2019 the clearance rate was 49.2% from 741 listings, 667 auctions and 350 sales totalling $335.2 million.
But last weekend’s sales continue to pale in comparison to 2018’s figure of $935.8 million, where there were 1,444 listings, 1,328 auctions and 885 sales resulting in a 64.1% rate. Similarly, in 2017 there were 1,205 listings, 1,135 auctions and 879 sales totalling $920 million and clearances of 75.7%. In 2016 the rate was 72.9% from 1,583 listings, 1,480 auctions and 1,100 sales totalling $1.06 billion and in 2015, clearances were 76.9% from 1,125 listings, 1,026 auctions and 809 sales totalling $779.3 million.
Canberra
In the nation’s capital 51 homes were listed and 30 homes were auctioned of which 23 sold, resulting in a clearance rate of 74%, according to Domain. Sales totalled $11.44 million and the median price was $837,500.
Corelogic reported a lower rate of 68% from 52 listings, 31 auctions and 21 sales whilst nine properties passed in. There were also 67 private transactions.
Brisbane
Clearance rates remain above 50% for the third weekend in a row in Brisbane. According to Domain, there were 74 listings, 38 auctions and 26 sales resulting in a 59% rate. Sales totalled $11.10 million and the median price was $825,000.
Across Queensland, the rate was 53% from 187 listings, 87 auctions and 46 sales whilst 40 properties passed in, according to Corelogic. There were also 971 private transactions.
Adelaide
Adelaide recorded another solid clearance rate of 63% from 62 listings, 40 auctions and 27 sales, according to Domain.
Sales totalled $14.50 million and the median price was $772,500.
Corelogic reported a higher rate of 74% from 93 listings, 47 auctions and 35 sales whilst nine homes passed in. It also recorded 221 private sales.
Perth
Western Australia had 31 listings and seven homes were auctioned but they all passed in. Meanwhile 385 properties sold privately, according to Corelogic.
Hobart
Tasmania had nine property listings and seven auctions were conducted, of which five properties sold whilst two passed in. According to Corelogic, there were also 145 private sales.
Darwin
The Northern Territory reported a 100% score from 12 listings, eight auctions and eight sales. There were also four private sales.
| Auction highlights this week Saturday, 14 March 2020 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 2/6 Cliff St, Milsons Point NSW 2061, 3 br Unit, Di Jones Lower North Shore Chatswood | $8,000,000 |
| Melbourne | 22 Epping St, Malvern East VIC 3145, 4 br House, Marshall White Stonnington | $3,820,000 |
| Adelaide | 19 Bickford Tce, Somerton Park SA 5044, 4 br House, Harris Real Estate Sales | $1,690,000 |
| Brisbane | 12 Glanmire St, Paddington QLD 4064, 5 br House, Place West | $2,850,000 |
| Canberra | 12 Barwell Pl, Curtin ACT 2605, 5 br House, Hayman Partners, Projects | $1,117,500 |
| Most affordable | ||
| Sydney | 10/68 McBurney Rd, Cabramatta NSW 2166, 1 br Unit, Ray White Cabramatta | $320,000 |
| Melbourne | 1208/408 Lonsdale St, Melbourne VIC 3000, 1 br Unit, Pagan Real Estate | $250,000 |
| Adelaide | 13 Kennett St, Para Hills SA 5096, 4 br House, RW Para Hills | $355,000 |
| Brisbane | 38/285 Creek Rd, Mount Gravatt East QLD 4122, 2 br Townhouse, RW Mount Gravatt | $389,000 |
| Canberra | 1/16 Sexton St, Cook ACT 2614, 2 br House, Hayman Partners, Projects | $560,000 |
