Auction clearances plunge following second rate rise

AUCTION clearance rates continue to decline, along with sales as cost-of-living pressures and rising interest rates cool the market but the prestige residential market continues to defy the slowdown.

With the Reserve Bank of Australia expected to raise interest rates at each meeting going forward to 3%, the tables have turned and it has become a buyer’s market.

According to the Domain, it was a bumper weekend with listings surging to 2,191, of which 1,500 properties went under the hammer but only 840 sales were reported so far, resulting in a preliminary clearance rate of only 56%.

Sale volumes were $709 million and the median house and unit sale prices were $1,130,000 and $766,000.

Activity is up from the previous Queen’s Birthday long weekend where the clearance rate 53% from 993 listings, 838 auctions and 444 sales totalling $352.3 million.

But it is well below the same period last year where $1.93 billion worth of homes sold and clearances were 70.8% from 2,741 listings, 1,940 auctions and 1,373 sales.

Sydney clearances are expected to fall below 50% when the final results are reported. Preliminary data shows there were 751 listings, 476 auctions and 255 sales resulting in a rate of 53.6%. Volumes were $285.7 million, the median house and unit sale prices were $1,782,500 and $975,000.

But the luxury residential market continues to defy the slowdown. A six-bedroom house at 4 Springdale Road Killara sold for $12.155 million by Black Diamondz Property Concierge Projects.

The Queen’s Birthday weekend reported a 49.9% rate from 420 listings, 335 auctions and 167 sales totalling $176 million. This time last year, clearances were 73.7% from 1,012 listings, 961 auctions and 708 sales totalling $1.25 billion.

Melbourne also reported a prestige sale with a four-bedroom house at 23 St Georges Road Toorak selling under the hammer for $9.05 million by Abercromby’s RE.

But the general market underperformed reporting a preliminary clearance rate of 56%. Of the 1,134 homes listed, 832 auctions and 466 sales were reported. They totalled $346.2 million, the median house and unit sale prices were $1,025,500 and $718,000.

In the previous weekend there were 543 listings, 297 auctions and 153 sales, resulting in a 51.5% clearance rate and totalling $94 million. Last year the rate was 65% from 1,447 listings, 702 auctions and 456 sales totalling $490.4 million.

The market has slowed markedly in Canberra which reported weak clearances of 59% from 85 listings, 58 auctions and 34 sales totalling $25.035 million. The median sale price was $928,000.

Similarly Brisbane reported a 50% rate from 92 listings, 56 auctions and 28 sales. Volumes totalled $18.983 million and the median sale price was $966,500.

Adelaide was the only strong performer with clearances of 73%. It was an active weekend with 129 homes listed and 78 auctions reported, of which 57 properties sold under the hammer.

Volumes totalled $33.081 million and the median sale price was $700,000.