This article is from the Australian Property Journal archive
DESPITE the snap lockdown in Victoria, the national auction market finished May stronger with improved clearances due to better results in Brisbane, Sydney, Adelaide, and Canberra. Whilst in Melbourne almost half of vendors chose to sell their properties before auction.
National
It was set to be a bumper end to May with 2505 properties listed. However due to the Victorian lockdown, 313 auctions were withdrawn, mostly in Melbourne.
As a result, the market capped off the end of May with 1768 homes auctions and 1,325 sales reported, resulting in a preliminary clearance rate of 74.9%, according to Domain.
Sales totalled $1.087 billion, the median house and unit sale prices were $1,200,000 and $813,000.
Domain’s senior research analyst Dr Nicola Powell said agents are well-versed in conducting an auction virtually, particularly in Melbourne.
“Many homes are already likely to have a pool of buyers known to the agent.
“Clearance rates are likely to be impacted by the ban on onsite auctions as any withdrawn auction is counted as an unsuccessful auction outcome and therefore will pull down the overall clearance rate. However, it is likely to be less severe compared to the bounce in withdrawn auctions seen in late-March.” Powell said.
AMP Capital chief economist Shane Oliver agreed and said Melbourne looks to have only been slightly impacted by snap lockdown as most properties already inspected.
Archistar chief economist Dr Andrew Wilson said unprecedented May auction numbers have flooded markets over the past five weekends and although clearance rates have eased, they nonetheless clearly remain at boomtime levels.
Wilson said despite the surge in listings and Melbourne lockdown, clearances increased slightly from the previous weekend, reflecting stronger results in Brisbane, Sydney, Adelaide and Canberra.
In the prior weekend there were 2,342 listings, 2,156 auctions and 1,558 sales resulting in a 72.3% clearance rate and sales of $1.37 billion. Last year during the national lockdown, the rate was 57.4% from 568 listings, 526 auctions and 302 sales totalling $366.8 million.
Sydney
Sydney preliminary clearances picked up to 77.4% on the weekend despite a higher number of properties on offer. Domain reported 981 listings, 720 auctions and 557 sales.
Volumes totalled $587.8 million, and the median house and unit sale prices were $1,613,500 and $1,040,000.
Wilson said clearance rates rebounded following five consecutive weekend falls, and despite an increase in listings.
“Sydney hosted a record-breaking 4868 weekend auctions over May with each Saturday delivering over 900 listings.
“The northern beaches was Sydney’s top performing region at the weekend with a clearance rate of 88.3% followed by the lower north 86.0% and the inner west 85.0%. The north west recorded the lowest regional result at 74.1%. The clearance rate for houses was 82.3%, with units slightly lower by comparison at 81.8%,” he added.
In the previous weekend the rate was 72.6% from 952 listings, 876 auctions and 636 sales totalling $668.4 million and last year it was 57.4% from 358 listings, 324 auctions and 186 sales totalling $263.9 million.
Melbourne
The Melbourne market was more resilient than expected with only 207 auctions postponed or withdrawn on the weekend, according to Domain.
Of the 1,272 homes listed, 878 went under the hammer and 627 sold resulting in a preliminary clearance rate of 71.4%. Volumes totalled $404.2 million, the median house and unit sale prices was $990,000 and $689,100.
Wilson said the market reported another strong result despite the severe constraints of the coronavirus lockdown now in force – and another surge in listings.
“Melbourne was set for the second busiest Saturday of the year for the city, with 1269 homes anticipated to go to auction. It falls short of the bumper volume seen over the last weekend in March at almost 1,600.
However, many homes set for auction are likely to be postponed, withdrawn or quickly shifted to online.
“Although the Saturday result was the lowest for the year so far for Melbourne, the local market continues to prove relatively resilient to the record-breaking waves of auctions conducted over the past month.
“Melbourne’s north reported the top regional clearance rate on Saturday with 78.5% followed by the north east 78.2%, with all regions below 80% at the weekend. The clearance rate for houses was 77.7%, with units at 72.5%.” Wilson said.
In the previous weekend the rate was 70.8% from 1,122 listings, 1,047 auctions and 741 sales totalling $576.6 million. Last year it was 60% from 162 listings, 155 auctions and 93 sales totalling $88.1 million.
The REIV reported a 93% rate from 724 auctions and 674 sales totalling $733.11 million. Almost half of the homes, a staggering 303 properties sold prior to auction.
The institute said 198 homes were withdrawn, 324 postponed and 305 results yet to be reported.
It also reported 170 private sales totalling $134 million.
Canberra
The national capital reported a strong 86% clearance rate on the weekend, according to Domain. Of the 56 homes offered, 44 were auctioned and 38 sold.
Volumes totalled $31.32 million and the median sale price was $879,000.
Corelogic also reported 59 private sales.
Brisbane
Brisbane clearances soared to 79% on the weekend, rebounding strongly from 56% in the prior weekend. According to Domain, 93 properties were listed, 66 went under the hammer and 52 sold. Volumes totalled $32.93 million and the median sale price was $1,183,500.
Across Queensland the rate was 69%, according to Corelogic. There were 353 listings, 134 auctions and 93 sales. There were also 1,178 private sales.
Adelaide
Adelaide also performed strongly with 85% clearance rates. Domain reported 103 listings, 60 auctions and 51 sales. Volumes totalled $31.122 million and the median sale price was $761,000.
Corelogic also reported 365 private sales.
Perth
Western Australia reported a 75% clearance rate from four auctions and three sales, according Corelogic, which also recorded 617 private sales.
Hobart
Tasmania reported one auction but the property was passed in, but 188 homes sold privately, according to Corelogic.
Darwin
The Northern Territory recorded a 100% clearance rate from two auctions. There were also 22 private transactions, according to Corelogic.
| Auction highlights this week Saturday, 29 May 2021 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 309 Storey St, Maroubra NSW 2035, 6 br House, RW Maroubra, South Coogee | $6,450,000 |
| Melbourne | 5 Winmalee Rd, Balwyn VIC 3103, 4 br House, Marshall White Bayside | $3,010,000 |
| Adelaide | 6 Highfield Av, St Georges SA 5064, 4 br House, T&T Real Estate | $1,710,000 |
| Brisbane | 16 Walker Av, Teneriffe QLD 4005, 4 br House, RW – New Farm | $5,450,000 |
| Canberra | 18 Birdwood St, Hughes ACT 2605, 3 br House, Blackshaw Manuka | $1,445,000 |
| Most affordable | ||
| Sydney | 17/22 Nagle St, Liverpool NSW 2170, 2 br Unit, ELD Liverpool | $285,000 |
| Melbourne | 4/29 Greville St, Prahran VIC 3181, 1 br Unit, Belle Property Armadale | $354,000 |
| Adelaide | 12 Wingfield Rd, Wingfield SA 5013, 3 br House, Boffo Real Estate | $425,000 |
| Brisbane | 15 Hillgrove St, Taigum QLD 4018, 3 br House, Julie Harris Realty Pty Ltd | $580,000 |
| Canberra | 33/20 Oliver St, Lyneham ACT 2602, 2 br Unit, LJH Belconnen | $425,000 |
