This article is from the Australian Property Journal archive
WITH only a few weeks before the end of the year, Sydney’s residential auction market is dangerously inching closer and closer to a sub 50% clearance rate.
Sydney is not alone. Across the nation, clearance rates are declining in other capital cities. As a result, dwelling prices dipped by 0.1% in November, led by Darwin and Sydney, to $655,132, according to Corelogic.
Sydney
According to Domain’s preliminary data, Sydney recorded a clearance rate of 64.9% last weekend. There were 868 listings, 465 auctions and 375 sales.
AMP Capital chief economist Shane Oliver has conservatively estimated that the final result is likely to be 54%, however it could be lower than that figure.
In the previous weekend, the preliminary clearance rate was 65.7%, which Oliver predicted would be 57%. Domain’s final result shows the true clearance rate was 53.3%.
Last weekend $352.1 million worth of homes sold at auction.
There were 987 scheduled auctions, 739 homes went under the hammer and 489 sold totalling $422 million in the previous weekend.
The same weekend last year is now a distant memory, when the market registered a high clearance rate of 70.6% from 870 listings, 721 auctions and 573 sales, totalling $794.3 million.
Oliver said this is the sixth weekend in a row where the rate is in the 50s, which points to ongoing price weakness.
CoreLogic’s latest research shows Sydney’s house prices fell by 0.7% in November and 1.3% over the quarter to be 5% higher than a year, at $904,041.
Head of research Tim Lawless said the Sydney housing market moved through a recent peak in July 2017 and dwelling values have been trending lower each month since that time.
“Sydney’s 1.3% fall over the past three months is the greatest decline over a three month period since March 2016,” he pointed out.
Melbourne
The clearance rate in the auction capital of Australia continues to decline, however it has not put off sellers.
Preliminary results from the REIV show a clearance rate of 68% was recorded last weekend. There were 1,202 auctions held and 663 sold under the hammer, 158 sold before and two sold after, whilst 179 were passed in.
The clearance rate is weaker than the previous weekend’s 69% where there were 1,578 auctions.
Compared to a year ago, the clearance rate was 78% from 1,262 auctions.
Despite the weakening clearance rates, sellers remain undeterred. The REIV said more than 4,300 auctions are scheduled this month, challenging last year’s record when 3,877 homes were auctioned in December.
There were also 409 private sales last weekend totalling $276 million.
The recent weaker clearance rates have yet to hit Melbourne, with dwelling prices rising 0.5% in November and 1.9% during the quarter to be 10.1% higher than a year – double the rate of growth for Sydney – at $718,325, according to CoreLogic.
Canberra
Canberra chalked up a clearance rate of 77% last weekend from 81 listings, 65 auctions and 50 sales, according to Domain.
The total value of properties sold was $33.298 million and the median price was $760,000.
Canberra led the way in November, with house prices increasing by 0.9%, the highest growth recorded in Australia during the month, according to CoreLogic.
Over the quarter, prices increased by 1.3% to be 5.8% higher over the year at $588,788.
Perth
There were 61 listings in Perth last weekend and 26 properties went under the hammer, of which 12 homes sold at auction whilst 11 were passed in.
CoreLogic shows Perth’s dwelling prices are bottoming out, rising by 0.2% in November and 0.3% during the quarter.
Although prices remain 2.6% lower than a year ago at $463,026.
Lawless said there is mounting evidence that the Perth housing market may finally have bottomed out.
“Dwelling values across Perth have edged higher over each of the past three months to record the first rolling quarterly capital gain since late 2014. The three months to November saw Perth dwelling values rise by 0.3%.
“In addition to values moving off their low base, settled sales are rising (+3.8% year on year), homes are selling faster (59 days compared with 68 days a year ago) and advertised stock levels have reduced substantially (-12.7% compared with last year). “If this is indeed the start of a recovery phase in the Perth housing market, it comes after dwelling values have fallen 10.8% since peaking in mid-2014.” Lawless said.
Brisbane
Brisbane had 131 listings, 54 auctions and 27 sales resulting in a clearance rate of 45%.
The total value of properties sold was $24.44 million and a median price of $787,500 was recorded.
Across Queensland, there were 395 listings and 271 properties went under the hammer of which 68 sold and 29 sold prior. However a staggering 152 homes were passed in.
Brisbane house prices nudged higher by 0.1% in November to $490,915, and is up 0.6% over the quarter to be 2.4% above last year.
Adelaide
Adelaide had 87 listings, 39 auctions and 25 sales totalling $13.625 million. The median sale price was $755,000.
CoreLogic shows Adelaide house price growth remained flat in November at $432,126 and rose by only 0.1% over the quarter, to be 7.8% higher than last year.
Hobart
Hobart had 11 listings, six auctions, of which one sold under the hammer and two old prior whilst two properties were passed in.
Despite the lack of activity at the auction, Hobart was the star performer in November with house prices jumping by 0.6% to $398,093.
Hobart relegated Melbourne to second place with house price growth of 3.3% during the quarter and 11.5% over the 12 months.
Darwin
Darwin had 17 listings and 11 auctions. Three homes sold at auction and one sold prior whilst seven properties were passed in.
Along with Sydney, Darwin house prices also fell in November, down 0.4% to $432,774, to be 2.7% lower over the quarter and 5.5% below the same time last year.
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 159 Hastings Pde, North Bondi NSW 2026, 3 br House, McGrath Eastern Suburbs New Developments | $7,550,000 |
| Melbourne | 7 Springfield Av, Toorak VIC 3142, 3 br House, Marshall White Stonnington | $4,600,000 |
| Adelaide | 44 Kingston Tce, North Adelaide SA 5006, 3 br House, Fox Real Estate | $1,391,000 |
| Brisbane | 22b Sentinel Ct, Cleveland QLD 4163, 4 br House, RR Real Estate | $3,900,000 |
| Canberra | 58 Leichhardt St, Griffith ACT 2603, 3 br House, Peter Blackshaw Real Estate Manuka | $2,120,000 |
| Most affordable | ||
| Sydney | 2/49 Thomas St, Ashfield NSW 2131, 1 br Unit, R&H Bardwell Park | $480,000 |
| Melbourne | 3/30 Beaumont Pde, West Footscray VIC 3012, 1 br Villa, Jas Stephens Real Estate | $276,000 |
| Adelaide | 43 Butterworth Rd, Aldinga Beach SA 5173, 3 br House, LJH Aldinga / Christies Beach | $220,000 |
| Brisbane | 7 Charles Av, Logan Central QLD 4114, 3 br House, LJH Sunnybank Hills | $317,000 |
| Canberra | 44 Goldner Cct, Melba ACT 2615, 2 br House, LJH Belconnen | $385,000 |
Australian Property Journal
