This article is from the Australian Property Journal archive
MELBOURNE'S residential property auction clearance rate has improved to 66% last week, on the back of strengthening demand.
Last weekend’s auction follows the Reserve Bank’s decision to cut interest rates at the October meeting, by 25 basis points to 3.25%, its lowest level in three years.
The REIV reported 497 properties going under the hammer and 330 sold, whilst 167 homes were passed in, 104 of those on a vendor bid. This resulted in a clearance rate of 66%. The total value of auction sales was $177.23 million.
Whilst the clearance rate has improved compared to the same weekend last year, where there were 559 auctions and a clearance rate of 51%, the value of sales was on par with $177.36 million last year.
In the same period in 2010, there were 527 auctions a clearance rate of 72%, and sales totalled $350.7 million. In 2009, there were 599 auctions and a clearance rate of 82% totalling $347.57 million, according to Australian Property Monitors’ Home Price Guide.
REIV CEO Enzo Raimondo said the market is building up to a busy run into Christmas and 3,070 auctions expected to be held this month, compared to 2,368 in September.
“This will provide buyers with more choice and continuing good buying opportunities, especially as interest rates have been reduced and prices remain below their peak.
“In the past month the market has seen an improved level of demand compared to this time last year and the next few weeks results will indicate whether it is, as is hoped by estate agents and vendors, a sustained one.
“Despite an overall low volume of auctions this year this spring will see a weekend with in excess of 1m000 auctions with 1,150 expected on the 27th and 28th of October. This in part reflects improving confidence from vendors but also the impact of the Melbourne Cup on the following weekend’s auctions,” he added.
The private sales market recorded 439 sales totalling $202.95 million, higher than 388 private sales totalling $181.36 million in 2011; 694 private sales totalling $335.84 million in 2010.
In Sydney there were 430 auctions reported and 270 sales, whist 160 properties were passed, resulting in a clearance rate of 63%, totalling $173.31 million, according to the REINSW.
Last weekend’s result is an improvement from the same period last year, where 403 properties went under the hammer and 174 sold resulting in a clearance rate of 55.4%, according to Australian Property Monitors’ Home Price Guide. The total value of properties sold was $123.6 million.
Sydney’s private sales market reported 539 transactions totalling $253.52 million.
Property Review
