This article is from the Australian Property Journal archive
AROUND 1,500 properties were withdrawn from the auction market on the weekend following the government’s ban to combat the spread of the coronavirus and at the same time, buyers retreated due to uncertainty in the economy and rising unemployment.
National
Some 2,723 properties were scheduled to go under the hammer last weekend prior to the government ban, according to Domain. But after Prime Minister Scott Morrison announced changed to social gatherings, only 933 properties and 857 sales were reported, resulting in a clearance rate of 35.3%. The final rate is expected to be around 30%.
Auction volumes totalled $536.5 million and the median house and unit sale prices were $1,071,000 and $755,000.
Prior to last Saturday, the previous weekend already saw activity weaken after clearance rates fell below 60% for the first time this year to 57.1% from 2,162 listings, 1,775 auctions and 1,132 sales totalling $834.9 million.
AMP Capital chief economist Shane Oliver said the market has been hit by covid-19. He is expecting house prices to decline as property transactions are put on hold and rising unemployment impacts.
This time last year the rate was 50.4% from 1,649 listings, 1,375 auctions and 774 sales totalling $830.7 million. Due to the Easter holiday in 2018, there were only 79 listings, 45 auctions and 32 sales totalling $23.5 million.
Meanwhile in 2017 clearances were 74.4% from 1,940 listings, 1,785 auctions and 1,387 sales totalling $1.62 billion and in 2016 it was 65% from 1,252 listings, 1,078 auctions and 752 sales totalling $691.5 million. In 2015 it was also the Easter holiday, as a result there were only 55 listings, 41 auctions and 33 sales totalling $34.6 million and clearance rate of 68.8%.
Sydney
More than half of the properties scheduled for auction were pulled by vendors last weekend. According to Domain, there were 1,058 listings, 394 auctions and 351 sales were reported representing a clearance rate of 37.3%, with 547 homes withdrawn.
Auction sales totalled $268.1 million and the median house and unit prices were $1,422,500 and $940,000. Oliver is expecting the rate will be 31%.
According to Corelogic, there were 1,026 private sales.
In the previous weekend, there were 780 listings, 601 auctions and 420 sales. Clearance rates fell to 58.8%. Volumes totalled $361.8 million.
In the same weekend last year, the rate was 55.2% from 626 listings, 466 auctions and 320 sales totalling $416.1 million. During the Easter holiday in 2018, rates were 50% from 48 listings, 23 auctions and 16 sales totalling $15.1 million. In 2017 the rate was 74.3% from 795 listings, 709 auctions and 562 sales totalling $808.4 million.
In 2016 the clearance rate was 67.5% from 541 listings, 458 auctions and 345 sales totalling $429.6 million. In 2015 it was the Easter holiday, therefore there were only 33 listings, 24 auctions and 20 sales totalling $26.9 million, and the clearance rate was 71.4%.
Melbourne
Vendors withdrew 807 properties from auction last weekend from the 1,400 homes listed. As a result, only 470 auctions and 451 sales were reported resulting in a preliminary clearance rate of 35.3%, according to Domain. Auction sales totalled $251.3 million and the median house and unit prices were $933,500 and $655,000.
Oliver expects the final clearance rate will be around 32%.
Setting aside the number of properties withdrawn, the REIV said the clearance rate was 90% from the 363 auctions and 328 sales reported, whilst 35 homes passed in 13 on a vendor bid. Auction sales totalled $312 million whilst 97 homes sold privately for $70 million.
Clearances were 67% from 1,074 auctions in the previous weekend and this time last year it was 55% from 839 auctions.
According to Domain, in the previous weekend the rate was 49.5% from 792 listings, 710 auctions and 368 sales totalling $359.7 million. This time in 2018 it was Easter, therefore only 22 listings, 18 auctions and 14 sales were conducted, resulting in a 66.7% clearance rate and totalling $7.3 million.
In 2017 the rate was 78% from 926 listings, 887 auctions and 709 sales totalling $728.1 million and in 2016 it was 66.8% from 486 listings, 437 auctions and 302 sales totalling $202.7 million. The same weekend in 2015 was also the Easter holiday, so only 11 homes were listed, eight were auctioned and sold representing a 80% rate and sales totalling $5.1 million.
Canberra
Canberra also saw some 20 homes withdrawn from auction. The capital city reported a 47% clearance rate on the weekend. According to Domain, there were 66 listings, 31 auctions and 24 sales totalling $8.03 million. The median sale price was $806,400.
Corelogic reported a 73% rate from 73 listings, 33 auctions and 24 sales. There were also 75 private sales.
Brisbane
Brisbane’s clearance rate dipped to 20%. Of the 131 properties listed, only 23 went under the hammer and 18 sold whilst 67 were withdrawn. Sales totalled $4.18 million and due to the low volumes, the median sale price was not available.
Across the state, Corelogic reported 310 listings, 89 auctions and 37 sales whilst 14 properties withdrawn and 38 passed in, resulting in a 42% clearance rate. The private sales market has 852 transactions.
Adelaide
The city of churches had scheduled 68 auctions, but 51 properties were withdrawn, according to Domain. As a result, there were only 15 auctions and 13 sold, resulting in a 20% clearance rate. Sales totalled $4.90 million.
Corelogic reported a 58% rate in South Australia from 102 listings, 26 auctions and 15 sales whilst four properties were withdrawn. It also recorded 275 private sales.
Perth
Western Australia had 31 listings but only four auctions were reported and two homes sold. According to Corelogic, there were also 355 private sales.
Hobart
Tasmania did not hold any auctions last weekend but 135 homes sold privately, according to Corelogic.
Darwin
The Northern Territory reported five listings, one auction and one sales, according to Corelogic.
| Auction highlights this week Saturday, 28 March 2020 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 3/79-80 North Steyne, Manly NSW 2095, 4 br Unit, Clarke & Humel Property Management Pty Ltd | $7,000,000 |
| Melbourne | 34 Were St, Brighton VIC 3186, 5 br House, Buxton Brighton | $3,410,000 |
| Adelaide | 42 Linden Av, Hazelwood Park SA 5066, 4 br House, HAR Pilgrim | $1,100,000 |
| Brisbane | 43 Weatherhead Av, Ashgrove QLD 4060, 4 br House, RW at The Entertainment Quarter | $1,110,000 |
| Canberra | 5 Carey Pl, Melba ACT 2615, 5 br House, Blackshaw Belconnen | $1,200,000 |
| Most affordable | ||
| Sydney | 3/1-3 Myers St, Roselands NSW 2196, 2 br Unit, R&H Bardwell Park | $508,500 |
| Melbourne | 2/21 Perth Av, Albion VIC 3020, 1 br Unit, Create Real Estate – Sunshine | $234,000 |
| Adelaide | 63 Branson Av, Clearview SA 5085, 3 br House, RW Norwood | $457,500 |
| Brisbane | 26 Lionel St, Nudgee QLD 4014, 3 br House, RW Aspley | $600,000 |
| Canberra | 17/3 Riddle Pl, Gordon ACT 2906, 2 br House, RW Canberra | $406,000 |
