This article is from the Australian Property Journal archive
HOME sellers flooded the auction market on the weekend, but it did not translate to higher sales. The housing sector will be a key focus in the upcoming budget with the government extending the housing deposit scheme and unveiling a new program targeting single parents.
National
Across the country 2,563 properties were listed, almost 300 higher than the previous weekend, according to Domain, which reported 1,923 auctions and 1,514 sales.
As result of the higher listings, the preliminary clearance rate dipped to 78.7%. Volumes totalled $1.45 billion, the median house and unit sale prices were $1,248,000 and $778,000.
Archistar chief economist Dr Andrew Wilson said although rates have eased marginally from the record-breaking March results, the numbers in all capitals remained clearly at boom-time levels.
Wilson said last weekend was the second highest offering of the year so far behind only the Super Saturday of auctions of March 27th.
Clearances continue to weaken are lower than the previous weekend’s 79.5% where there were 2,289 listings, 1,954 auctions and 1,554 sales totalling $1.44 billion.
During lockdown last year there were only 287 listings, 256 auctions, 143 sales totalling $136 million and resulting in a 55.9% clearance rate.
Despite last weekend’s result, AMP Capital chief economist Shane Oliver said sales remain very strong, supported by ultra-low rates return of investors and the government’s expanded deposit support schemes.
On the weekend the government announced the extension of the FHLDS (New Homes) and the establishment of a new program called the Family Home Guarantee in the 2021- 2022 Budget.
Family Home Guarantee will provide eligible single parents with dependants the opportunity to build a new home or purchase an existing home with a deposit of 2%, subject to the individual’s ability to service a home loan. From 1 July 2021, 10,000 Family Home Guarantees will be made available over four financial years.
Regardless of whether that single parent is a first home buyer or previous owner-occupier, they can access the program as long as they have an annual taxable income of no more than $125,000.
The government also extended the FHLDS (New Homes) with an additional 10,000 places available from 1 July 2021 to 30 June 2022.
Wilson said auction markets will be further advantaged with the federal budget set to announce more significant stimulus policies aimed directly at housing demand – notably first home buyers increasingly marginalised by skyrocketing prices and rising competition from investors.
Sydney
Despite new COVID-19 restrictions introduced across Sydney to prevent a potential “super spreader”, the auction market saw listings increased to 1,014 properties last weekend, of which 766 auctions and 623 sales were reported by Domain.
The preliminary clearance rate was 81.3% and volumes totalled $726.5 million. The median house and unit sale prices was $1,690,000 and $926,000.
Oliver expects the final clearance rate will be 78%, which is slightly lower than the previous weekend’s 79.5% from 935 listings, 821 auctions and 653 sale totalling $745.9 million. Last year it was 67% from 131 listings, 109 auctions and 73 sales totalling $77.6 million.
Wilson said although clearance rates have faded marginally compared to the unprecedented results recorded in March, the market clearly remain in favour of sellers with upward pressure on prices continuing from strong buyer competition now increasingly fuelled by investors.
“Sydney’s high autumn clearance rates remained unaffected by another record surge in auctions at the weekend with yet more boom-time results recorded,” he added.
According to Archistar, the northern beaches and the lower north were the top performing regions with clearance rates of 88.3% and 88.1% respectively. The south west however fell again at the weekend down to 76.1% with west also lower at 73.0%.
Melbourne
Wilson said Melbourne auctions numbers were a record for a May Saturday.
According to Domain, there were 1,248 listings, 938 auctions and 718 sales resulting in a preliminary rate of 77%. Volumes totalled $590.3 million and the median house and unit sale prices were $1,076,000 and $680,500.
According to Archistar, The clearance rate for houses was 81.3%, with units at 78.0% and the outer east yet again reported the top regional clearance rate on Saturday with 85.5% followed by the North 84.8%.
Oliver expects the final rate will be around 75%, which is lower than the previous weekend’s 78.8% where there were 1,085 listings, 919 auctions and 724 sales totalling $580.2 million. Last year it was 47.25% from 110 listings, 106 auctions and 50 sales totalling $42.6 million.
Meanwhile the REIV reported an 81% rate from 1,000 auctions, 811 sales totalling $941 million, whilst 189 homes passed in, 92 on a vendor bid.
There were also 204 private sales totalling $167 million.
Canberra
After sitting aloft above 90% in recent weekends, Canberra clearance rates dipped below that level last Saturday. According to Domain, there were 69 listings, 64 auctions and 55 sales, representing a rate of 88%.
Auction volumes totalled $49.89 million, and the median sale price was $917,500.
Corelogic reported 65 private sales.
Brisbane
Brisbane reported a strong clearance rate of 73%, according to Domain. There were 135 listings, 89 auctions and 65 sales. Volumes totalled $52.83 million and the median sale price was $1,057,500.
Corelogic reported a 76% rate across Queensland from 323 listings, 118 auctions and 90 sales. It also recorded 1,128 private sales.
Adelaide
Adelaide continues to perform strongly reporting a 80% clearance rate on the weekend. Of the 97 homes listed, 66 went under the hammer and 53 sold, according to Domain.
Volumes totalled $39.85 million, and the median sale price was $791,000.
Corelogic reported 354 private sales.
Perth
Western Australia reported a 57% rate. Of the 23 homes listed, seven auctions and four sales were reported by Corelogic. There were also 610 private transactions.
Hobart
Tasmania reported a 100% clearance rate from one auction as well as 182 private sales, according to Corelogic.
Darwin
The Northern Territory recorded a 50% rate from two auctions and 19 private transactions, according to Corelogic.
| Auction highlights this week Saturday, 8 May 2021 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 28 Lower Boyle St, Mosman NSW 2088, 4 br House, R&W Mosman/Neutral Bay | $8,250,000 |
| Melbourne | 50 Kerferd Rd, Albert Park VIC 3206, 5 br House, Greg Hocking Holdsworth | $6,300,000 |
| Adelaide | 39A North Esp, Glenelg North SA 5045, 4 br House, R&H Unley | $2,450,000 |
| Brisbane | 57 Enderley Rd, Clayfield QLD 4011, 5 br House, Place Estate Agents Ascot | $5,075,000 |
| Canberra | 9 Daly St, Deakin ACT 2600, 5 br House, Blackshaw Belconnen | $2,950,000 |
| Most affordable | ||
| Sydney | 116/26 Cairds Av, Bankstown NSW 2200, 1 br Unit, McGrath Sutherland Shire | $410,000 |
| Melbourne | 10/36 Moonya Rd, Carnegie VIC 3163, Unit, Gary Peer | $295,000 |
| Adelaide | 199 Sandison Rd, Hallett Cove SA 5158, 3 br House, Harris Real Estate – Copper Coast R | $475,000 |
| Brisbane | 5 Scenic Av, Browns Plains QLD 4118, 3 br House, Your Address Real Estate | $436,000 |
| Canberra | 122/2 Windjana St, Harrison ACT 2914, 2 br Unit, LJH Belconnen | $410,000 |
