This article is from the Australian Property Journal archive
AUCTION clearance rates nationally are expected to fall below 70% due to sustained higher listings. But Melbourne’s extended lockdown did not dampen spirits in the prestige property market, an Albert Park home sold just shy of $10 million, to Grant Petty, founder of Blackmagic Design.
National
According to Domain, the first June auction weekend saw preliminary clearance rates fall to 70.8% on the weekend, this is below the March average of around 84% in the lead up to the Easter holidays.
The fall was due to a combination of the Melbourne lockdown and sustained higher listings as vendors try to take advantage of the boom conditions whilst it lasts.
On the weekend there were 2,697 listings, 1,773 auctions and 1,255 sales whilst 392 properties were withdrawn, of which 281 were in Melbourne. Sales totalled $1.12 billion and the median house and unit sale prices was $1,210,000 and $845,000.
AMP Capital chief economist Shane Oliver said Melbourne saw increased listings, but the market was hit by the lockdown and warned that the market will slow further if lockdown drags on.
He noted that although Sydney remains strong, clearances are down, which he added could point to slower price growth which is good news for buyers.
Archistar chief economist Dr Andrew Wilson said sellers continue to flood national weekend auction markets in record numbers as the winter selling season commences with unprecedented activity levels.
“National clearances rates however eased at the weekend, reflecting the listings surge providing more choices for buyers and again high withdrawals in a Melbourne market continuing to be impacted by the covid lockdown.
“Clearance rates however remained at boomtime levels generally indicating ongoing strong demand for property. Saturday’s national clearance rate of 80.7% was the lowest for the year so far but just below the previous weekends 82.0%. Weekend clearance rates were lower in Sydney, Melbourne and Adelaide but higher in Brisbane and steady in Canberra.
“Although surging auction numbers will be lower next weekend due to the Queens Birthday holiday, there is clearly no sign of a significant easing in the strong market conditions experienced across the board this year.” Wilson said.
Domain senior data and research analyst Dr Nicola Powell said last weekend was the second busiest weekend for auctions in Sydney, Melbourne, Brisbane, Adelaide and Canberra since late March this year.
This comes after Sydney, Melbourne and Adelaide saw the largest number of auctions scheduled in a single month since Domain records began.
Domain records began for NSW in 1995, in Victoria 1997, in Queensland 2001, in Canberra 1999, and in South Australia and Western Australia 2002.
Listings are higher than the previous weekend’s 2,508, where 2,109 homes went under the hammer and 1,497 sold totalling $1.25 billion, resulting in a 71% clearance rate. Last year during the national lockdown, the rate was 50.7% from 495 listings, 446 auctions and 226 sales totalling $279.6 million.
May Auctions
| City | Clearance Rate | Auctions Scheduled | Auction Sold | Passed In | Sold Prior | Withdrawn |
| Sydney | 77.3% | 5486 | 3956 | 485 | 34.5% | 13.2% |
| Melbourne | 72.2% | 6112 | 4040 | 856 | 23.4% | 12.6% |
| Brisbane | 67.2% | 688 | 362 | 134 | 27.1% | 8% |
| Adelaide | 76.2% | 723 | 462 | 100 | 23.6% | 7.3% |
| Canberra | 89.8% | 400 | 327 | 25 | 22.8% | 3.3% |
| Geographies are based on GCCSA geography. Auction reporting rates are above 91% across all capitals apart from Brisbane at 78% and Adelaide at 83%. Source: Domain | ||||||
Sydney
Despite higher listings Sydney preliminary rates were 77%. According to Domain, of the 1,048 homes listed, 770 went under the hammer and 593 sold. Sales totalled $655.6 million, the median house and unit sale prices were $1,645,000 and $1,016,500.
Oliver expects the final rate will be 72%.
Wilson said the Sydney market hosted another remarkable weekend of listings on Saturday to smash the record for the number of properties to go under the hammer on a June day.
“Sydney reported a June record 1048 auctions on Saturday which was higher than the previous weekends 981 and the second highest for the year so far – behind only the 1227 auctioned over the pre-Easter Super Saturday on March 27th.
“Record auction numbers acted to push clearances rates down but results clearly remained in favour of sellers,” he added.
The northern beaches was again the top performing region with a clearance rate of 88.8% followed by Canterbury Bankstown 86.7% and the city and east 84.4%. The south west recorded the lowest regional result at 76.1%. The clearance rate for houses was 81.7%, with units lower at 77.6%.
In the previous weekend there were 984 listings, 916 auctions and 654 sales totalling $702.3 million, resulting in a 71.4% clearance rate. Last year clearances were 51.5% from 310 listings, 272 auctions and 140 sales totalling $199.8 million.
Melbourne
The extended lockdown saw preliminary clearances plunge further to 62.5% as more properties were withdrawn. According to Domain, there were 1,369 listings, 803 auctions and 502 sales whilst 281 homes were withdrawn.
Sales totalled $350.1 million, the median house and unit sale prices were $1,050,000 and $703,000.
Wilson said Melbourne reported a record auction day for June, it was the second highest so far this year – behind only the 1593 reported over the pre-Easter Saturday on March 27th.
But high withdrawals due to the lockdown subdued clearance rates. Although he noted withdrawals levels are significantly lower than those recorded during last year’s lockdowns with online auctions to the fore.
Despite the lockdown the prestige market recorded a $9.90 million sale of a Victorian residence at 44 Merton Street Albert Park in a Greg Hocking Holdsworth auction.
It was snapped up via a Zoom auction by Grant Petty, the founder and CEO of Blackmagic Design.
Named Lorimer, the property sits on a 830 sqm (approx.) site and formerly served as a maternity hospital in the early 20th century. It comprises five bedrooms, two bathrooms and three car parking spaces.
In the previous weekend the rate was 69.5% from 1,272 listings, 983 auctions and 683 sales totalling $444.7 million. Last year it was 49.6% from 138 listings, 133 auctions and 66 sales totalling $62.7 million.
The REIV reported a 96% rate from 556 auctions and 534 sales totalling $607.94 million, whilst 572 auctions were postponed and 231 withdrawn.
More than 14,000 homes have been sold under the hammer in the first five months of 2021, led by Reservoir (254) and Glen Waverley (202).
There were also 183 private sales totalling $147 million.
Canberra
Canberra continues its outperformance with a 86% clearance rate. According to Domain, there were 71 listings, 58 auctions and 50 sales totalling $47.755 million. The median sale price was $980,000.
Corelogic reported 54 private sales.
Brisbane
Brisbane also reported strongly with clearances of 75%. Domain recorded 102 listings, 72 auctions and 54 sales. Volumes totalled $35.15 million and the median sale price was $977,500.
Across Queensland the rate was 66% from 275 listings, 94 auctions and 62 sales, according to Corelogic, which also reported 1240 private sales.
Adelaide
Adelaide recorded a 80% rate from 107 listings, 70 auctions and 56 sales. Volumes totalled $31.49 million and the median sale price was $622,500, according to Domain.
Corelogic reported 353 private sales.
Perth
Western Australia reported a 75% rate from four auctions and three sales, according to Corelogic. Meanwhile 649 properties sold privately.
Hobart
Tasmania did not report any auctions but 205 properties sold privately, according to Corelogic.
Darwin
The Northern Territory also did not report any auctions although 27 homes sold privately.
| Auction highlights this week Saturday, 5 June 2021 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 22 Hopetoun Av, Vaucluse NSW 2030, 5 br House, PPD Real Estate | $6,910,000 |
| Melbourne | 44 Merton St, Albert Park VIC 3206, 5 br House, Greg Hocking Holdsworth | $9,900,000 |
| Adelaide | 29 Lockwood Rd, Erindale SA 5066, 4 br House, RW Norwood | $2,250,000 |
| Brisbane | 9 Goodwood St, Hendra QLD 4011, 5 br House, Place Estate Agents Ascot | $3,321,000 |
| Canberra | 33-35 Grey St, Deakin ACT 2600, 6 br House, Hive Property (ACT) Pty Ltd | $3,980,000 |
| Most affordable | ||
| Sydney | 68/4-11 Equity Pl, Canley Vale NSW 2166, 2 br Unit, HAR Mascot | $400,000 |
| Melbourne | 23/58 Andrew St, Melton South VIC 3338, 2 br Unit, Brad Teal Woodards Essendon | $261,000 |
| Adelaide | 1 Idmiston St, Elizabeth SA 5112, 4 br House, Alpha Residential | $126,000 |
| Brisbane | 3/80 Groth Rd, Boondall QLD 4034, 3 br Townhouse, Huis Estate Agents | $347,000 |
| Canberra | 192/41 Chandler St, Belconnen ACT 2617, 1 br Unit, LJH Belconnen | $345,000 |
