This article is from the Australian Property Journal archive
TO say the residential property auction has cooled is an understatement. The latest data from last weekend shows Melbourne and Sydney have recorded their worst results in six and 10 years, respectively.
It was a bumper weekend with a marked increase in the number properties going under the hammer across Australia, however that did not translate to higher sales.
According to preliminary data from Domain, there were 2,070 listings with 1,418 properties auctioned and 962 sold, resulting in a clearance rate of 62.5%. The total value of properties sold was $726.8 million.
Activity picked up compared to the previous weekend, where there were 1,329 listings, 1,092 auctions and 663 sales, representing a clearance rate of 54.8%. The total value of properties sold was $515.6 million.
In the same weekend last year, there were 1,883 listings, 1,693 auctions and 1,312 sales totalling $1.34 billion. The clearance rate was 73.3%.
Sydney
An uplift in listings overwhelmed Sydney’s market.
According to Domain’s preliminary data, there were 670 listings, 378 auctions and 264 sales totalling $224.1 million, resulting in a clearance rate of 58%.
AMP Capital’s chief economist Shane Oliver said the final clearance rate figure is expected to be 49% once the late results are accounted.
Oliver said the average clearance rate in Sydney over April is around 53% which is the worst result in a decade, since April 2008.
Oliver said auction sales continue to fall with tighter lending standards starting to impact along with poor affordability and falling capital gain expectations.
In the coming months, all eyes will be on investors after the Australian Prudential Regulation Authority reversed its decision last week by removing the investor loan growth benchmark.
Introduced in December 2014, the 10% cap on investor loan growth was aimed at curbing higher risk lending by the banks and to improve their practices. At the time, investors accounted for 45% of all new borrowing and in the space of three and a half years, it has fallen to 35% as at February this year.
In the previous weekend, the clearance rate was 51.5% from 406 listings, 278 auctions and 185 sales totalling $189.8 million.
In the same weekend last year, the clearance rate was 74.6% from 642 listings, 447 auctions and 447 sales totalling $579.5 million.
Melbourne
The REIV’s preliminary data shows Melbourne recorded a clearance rate of 68%. There were 984 auctions, 665 homes sold under the hammer and 319 were passed in, 168 on a vendor bid.
The clearance rate from the previous weekend was 67% from 807 auctions. In the same weekend a year ago, the clearance rate was sitting at a high of 81% from 1,025.
Last weekend, the total value of auction sales was $613.12 million. At the same time, there were 249 private sales totalling $177 million.
Oliver said the Melbourne clearance rate average was 61% in April, which is the worst result since 2012.
Canberra
Canberra reported a clearance rate of 65%, according to Domain’s preliminary data.
There were 82 listings, 62 auctions and 40 sales totalling $24.71 million and the median sale price was $777,000.
Brisbane
Last weekend in Brisbane, there were 103 listings, 50 auctions and 29 sales, according to Domain. The clearance rate was 53%.
The total value of auction sales was $21.33 million and the median sale price was $795,000.
According to Corelogic, the clearance rate was 42% from 305 listings, 166 homes went under the hammer and 51 sold at auction, 18 prior and one after whilst 83 were passed in.
Adelaide
Adelaide reported a clearance rate of 62%, according to Domain.
There were 91 listings, 48 auctions and 34 sales totalling $21.52 million and the median sale price was $660,000.
Perth
Last weekend Perth’s clearance rate was 38%, according to Corelogic.
There were 44 listings, 21 auctions and five sales under the hammer and three prior to the event, whilst 12 homes were passed in.
Hobart
Hobart had eight listings and six properties were auctioned resulting in two sales whilst four homes were passed in.
Corelogic recorded a clearance rate of 33%.
Darwin
The clearance rate was 40% in Darwin last weekend.
Corelogic recorded 12 listings and 10 homes were auctioned with one selling on the day and three prior, whilst five properties were passed in.
| Auction highlights this week Saturday, 28 April 2018 | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 88 Park Rd, Hunters Hill NSW 2110, 5 br House, McGrath Hunters Hill | $5,800,000 |
| Melbourne | 18 Miller Gr, Kew VIC 3101, 4 br House, Marshall White Boroondara | $3,375,000 |
| Adelaide | 18 Warwick St, Walkerville SA 5081, 4 br House, Klemich Real Estate – RLA174424 | $1,545,000 |
| Brisbane | 115 Elizabeth St, Toowong QLD 4066, 5 br House, Adcock Prestige | $1,715,000 |
| Canberra | 58 Sprent St, Narrabundah ACT 2604, 5 br House, Luton Properties – Manuka | $2,200,000 |
| Most affordable | ||
| Sydney | 2/61 Colin St, Lakemba NSW 2195, 2 br Unit, Ray White Bankstown | $366,000 |
| Melbourne | 11/3 Royal Av, Essendon North VIC 3041, 1 br Unit, Nelson Alexander Essendon | $215,000 |
| Adelaide | 1 Desmond Rd, Hackham SA 5163, 3 br House, Phil McMahon Real Estate “Glenelg” | $185,000 |
| Brisbane | 27 Marble St, Keperra QLD 4054, 3 br House, HAR Solutions | $435,021 |
| Canberra | 10/58 Eileen Good St, Greenway ACT 2900, 2 br Unit, Peter Blackshaw Real Estate Woden & Weston Creek Projec | $457,500 |
Australian Property Journal
