This article is from the Australian Property Journal archive
FOLLOWING a surge post the federal election, auction listings and sales declined last weekend ahead of the Reserve Bank’s June 7 meeting.
According to Domain, there were 2,220 homes listed last weekend, down from 2,708 properties in the post-election weekend.
A preliminary clearance rate of 58.7% was reported from 1,533 auctions and 900 sales. Volumes totalled $739.8 million, the median house and unit sale prices were $1,205,000 and $772,500.
In the previous weekend there were 2,382 auctions and 1,383 sales totalling $1.136 billion. This time last year, there were 2,589 listings, 2,162 auctions and 1,482 sales totalling $2.083 billion.
Last weekend’s result reflects the declining market.
According to Domain’s Auction Report for May 2022, after a record volume of auctions was seen in the first four months of 2022, May has seen an annual decline in listings for the first time since February 2021.
Auction clearance rates have fallen below 70% in all capital cities this month as a result of more homes on the market and reduced competition among buyers, highlighting the overall slowdown in the property market. Sydney, Melbourne, Canberra, and Brisbane recorded their weakest clearance rates of the year.
According to Apollo Auctions’ May Auction Report, the average number of active bidders at auction reduced by about 5% during May, partly due to the federal election but also the interest rate increase at the start of the month. Active bidding was recorded at 63.83% of auctions.
Apollo Auctions director Justin Nickerson said although active bidders did retreat, the number of registered bidders, as well as attendance figures, remained stable compared to April, at 3.84 and 29.1 respectively.
Apollo Auctions recorded an average auction clearance rate of 65.48%, down about 5% compared to April. Its total included a 75% clearance rate in Perth and a 65.5% clearance rate on the Gold Coast.
Nickerson said the smaller cities of Brisbane, the Gold Coast, and Perth are continuing to show strong market metrics for sellers.
Meanwhile the RBA meets this week and economists expect it hike its cash rate by another 25 basis points followed by 40bp in August.
Capital Economics forecast interest rates will peak at 3.0% is above the analyst consensus.
Activity weakened in Sydney with 801 homes listed, of which 523 auctions and 285 sales were reported, resulting in a preliminary clearance rate of 54.5%. Volumes were $297.4 million, the median house and unit sale prices were $1,540,500 and $1,000,000.
In the previous weekend clearances were 55.3% from 1,012 listings, 856 auctions and 473 sales totalling $478.5 million and last year, the market was booming with 72.4% clearance rates from 1,038 listings, 987 auctions and 715 sales totalling $1.247 billion.
Melbourne’s preliminary clearance rates were higher than Sydney, at 58.4%. There were 1,095 listings, 811 auctions and 474 sales totalling $347.4 million. The median house and unit sale prices were $1,121,000 and $686,000.
Clearances were comparable to the previous weekend’s 58% from 1,322 listings, 1,206 auctions and 700 sales totalling $509.8 million. Last year it was 62.3% from 1,274 listings, 901 auctions and 561 sales totalling $658.5 million.
Canberra reported 95 listings, 65 auctions and 42 sales resulting in a 65% clearance rate. Sales totalled $33.812 million and the median sale price was $975,000.
Brisbane clearances rebounded to 70%. There were 86 listings, 44 auctions and 31 sales totalling $23.53 million. The median sale price was $1,140,000.
Adelaide remains the top performer with a clearance rate of 76%. There were 143 listings, 90 auctions and 68 sales totalling $37.657 million. The median sale price was $780,000.
