This article is from the Australian Property Journal archive
FEWER vendors coming on the market and buyers holding back dragged the auction market lower last weekend.
According Domain’s preliminary data, listings are down by at least 25% and sales by $1.2 billion across the country when compared to a year ago.
Last weekend there were 1,656 listings, which is well below 2,240 properties scheduled for auction in the same weekend last year.
Despite the decline in listings, auction clearance rates were not higher with homebuyers showing restraint.
Across the country, the preliminary median clearance rate was 58.6%. Of the 1,168 properties that went under the hammer – 755 sold totalling $612.2 million.
In the previous weekend, the final clearance rate was 54.6% from 1,785 listings, 1,501 auctions and 911 sales totalling $689.8 million.
In the same weekend last year, a high clearance rate of 72% was recorded from 2,240 listings, 2,008 auctions and 1,526 sales totalling $1.85 billion.
Sydney
According to Domain, Sydney reported a preliminary clearance rate of 55% last weekend from 524 listings, 321 auctions and 217 sales.
In the previous weekend, the clearance rate was 51% from 578 listings, 429 auctions and 273 sales. In the same weekend last year, the clearance rate was 70.9% from 870 listings, 734 auctions and 573 sales.
AMP Capital’s chief economist Shane Oliver said final clearance rate in Sydney will likely be around 50%, once all the data is reported.
It is not only sales numbers that have declined, the total value has also fallen markedly. Last weekend, Sydney sold $219.1 million worth of homes, which is similar to the previous weekend’s $254.5 million, but well below the $862 million figure recorded for the same weekend last year.
Last weekend’s median house and unit auction sale price was $1,430,000 and $877,500, respectively.
Melbourne
After putting up a valiant effort for the most part of the first half of this year, Melbourne is winding down rapidly. Over the past month, its clearance rates have dipped below 60% and are now trending towards the low to mid 50% level.
According to Domain, the preliminary clearance rate was 62.5% from 899 listings, 685 auctions and 446 sales last weekend. The median house and unit sale prices were $860,000 and $611,000, respectively.
AMP Capital’s Shane Oliver predicts the final figure will be around 58%.
In the previous weekend, the final clearance rate was 56.4% from 958 listings, 851 auctions and 507 sales totalling $357.76 million. In the same weekend last year, the rate was 75.1% from 1,106 listings, 1,046 auctions and 806 sales totalling $879.9 million.
Separate data from REIV shows Melbourne recorded a preliminary clearance rate of 64% from 787 auctions and 502 sales, whilst 285 properties were passed in, 152 of those on a vendor bid.
The total value of auction sales was $508.29 million. At the same time, there were 393 private sales totalling $283 million.
The clearance rate in the previous weekend was 62% from 954 auctions. It is a far cry from last year’s rate of 79% from 1,114 auctions.
Adelaide
Adelaide also continued to trend downwards. Last weekend, it reported a clearance rate of 55% from 68 listings, 49 auctions and 29 sales, according to Domain. The median auction sale price was $658,750.
Separate data from Corelogic shows across South Australia, the clearance rate was not much better, at 54% from 129 listings, 80 auctions, 43 sales and 32 homes were passed in.
Brisbane
Brisbane reported a low clearance rate of 38% last weekend, according to Domain.
There were 107 scheduled auctions and 60 homes went under the hammer, however only 27 sold.
The total value of sales was $17.65 million and the median price was $817,000.
Conditions did not improve across Queensland. According to Corelogic, the rate was also 38% from 261 listings, 182 auctions and 70 sales, whilst 98 homes were passed in.
Canberra
The nation’s capital delivered a clearance rate of 64%. There were 58 listings and 53 properties were auctioned, of which 36 sold.
The total value of auction sales was $19.73 million and the median was $770,000.
Corelogic reported a clearance rate of 66% from 79 listings, 74 auctions and 49 sales, whilst 23 properties were passed in.
Perth
Perth recorded a low clearance rate of only 23%, according to Corelogic. There were 51 scheduled auctions and 30 homes went under the hammer, of which seven sold and 17 properties were passed in.
Darwin & Northern Territory
Last weekend in the Northern Territory, there were eight listings and seven auctions, however only two properties sold resulting in a clearance rate of 29%.
Hobart & Tasmania
Tasmania recorded another perfect 100% clearance rate last weekend, although there was only one auction held and the property at 1001 Deddington Rd Deddington sold for $320,000.
| Auction highlights this week Saturday, 19 May 2018 (Source: APM) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 58/1 Lauderdale Av, Fairlight NSW 2094, 4 br Unit, Stone Real Estate Manly | $4,860,000 |
| Melbourne | 56 Kerferd St, Malvern East VIC 3145, 5 br House, Thomson | $6,110,000 |
| Adelaide | 479 Henley Beach Rd, Lockleys SA 5032, 7 br House, Ous Property | $1,550,000 |
| Brisbane | 48 Flinders Pde, Sandgate QLD 4017, 4 br House, Jim McKeering Real Estate | $1,420,000 |
| Canberra | 3 Golden Gr, Red Hill ACT 2603, 4 br House, Belle Property Kingston | $1,580,000 |
| Most affordable | ||
| Sydney | 15/17 Bruce St, Blacktown NSW 2148, 2 br Unit, HAR Parramatta | $440,000 |
| Melbourne | 10/4-6 Foot St, Frankston VIC 3199, 2 br Unit, Community Real Estate | $288,000 |
| Adelaide | 66 Zephyr Tce, Port Willunga SA 5173, 3 br House, HAR Packham property | $312,000 |
| Brisbane | 17 Ashvale St, Kingston QLD 4114, 3 br House, RW – Marsden | $273,000 |
| Canberra | 26 Honyong Cr, Ngunnawal ACT 2913, 3 br House, Cream Residential | $462,000 |
Australian Property Journal
