This article is from the Australian Property Journal archive
THE Reserve Bank’s second interest rate cut in two months has helped auction clearance rates stay above 60%, however volumes remain low.
The preliminary national clearance rate on the weekend was 64.3%, according to Domain. There were 762 listings, 516 auctions and 366 sales reported. Volumes totalled $282.8 million and the median house and unit sale prices were $950,000 and $700,000.
AMP Capital chief economist Shane Oliver said the market continues to rebound following the election and two interest rate cuts as well as news that APRA is easing 7% minimum interest rate loan guidelines and allowing lenders to set their own.
However, he noted that volumes remain very low.
Oliver said the rebound in auction clearances points to stronger momentum in Sydney and Melbourne house prices ahead after a lag but volumes would need to pick up.
“I suspect it’ll be constrained this time by tighter bank lending standards, high household debt, rising unemployment, and slower NSW & Vic economies,”
Volumes are down from the previous weekend’s 1,056 listings, 876 auctions and 591 sales, representing a 61.8% rate. Sales totalled $410.7 million, the median house and unit sale prices were $953,750 and $676,000.
Activity is also well down from the same weekend last year where there were 1,136 listings, 917 auctions and 522 sales, reflecting a 49.2% clearance rate. Sales totalled $531 million and the median house and unit sale prices were $910,000 and $747,000.
In the same weekend in 2017, the clearance rate was 66.2% from 1,380 listings, 1,238 auctions and 872 sales totalling $862.5 million.
Sydney
Last weekend the preliminary clearance rate soared to 69%, according to Domain. But activity declined with only 289 listings, 191 auctions and 152 sales reported.
Auction sales totalled $136.4 million and the median house and unit sale prices were $1,310,000 and $825,250. The most expensive property sold was a three bedroom apartment in 35/93 Elizabeth Bay Rd, Elizabeth for $4,175,000 by Ray White whilst the cheapest was a three-bedroom house in 6 Balboa Pl, Willmot for $232,000 by Laing+Simmons.
Corelogic also reported 1,232 private sales.
Oliver expects the final clearance rate will be around 64%, once all the results are reported. This is on par with the previous weekend, although there were more properties on offer. Of the 427 homes listed, 340 went under the hammer and 224 sold, totalling $194.2 million. The median house and unit sale prices were $1,293,000 and $822,500.
This time last year, the clearance rate was languishing at 47.6% from 441 listings, 309 auctions and 191 sales which totalled $257 million. The median house and unit sale prices were $1,450,000 and $964,000.
In 2017, the rate was 66.9% from 535 listings, 462 auction and 462 sales totalling $437.1 million.
Melbourne
Volumes also declined in Melbourne. According to Domain, there were 338 listings, 237 auctions and 170 sales, representing a preliminary clearance rate of 68%.
Sales totalled only $122.7 million and the median house and unit sale prices were $863,000 and $583,000. A three-bedroom townhouse in 3/15 Morton Gr, Chelsea was the most expensive sale at $2,000,000 by Hocking Stuart and cheapest was a one-bedroom apartment in 12/42 Gillies St, Fairfield for $335,000 by Miles Real Estate.
Oliver expects final clearance rate will fall to around 64%, which will be lower than the previous weekend’s 67.8%, where there were 465 listings, 414 auctions and 293 sales totalling $194.2 million. The median house and unit sale prices were $873,500 and $626,000.
In the same weekend last year, the rate was 50.4% from 539 listings, 476 auctions and 259 sales totalling $217.3 million. The median house and unit sale prices were $825,000 and $580,000.
In 2017, there were 663 listings, 612 auctions and 441 sales totalling $356.9 million.
The REIV reported a 72% clearance rate. There were 287 auctions and 208 properties sold whilst 79 were passed in, 31 on a vendor bid.
There were also 142 private sales totalling $74 million.
In comparison, the previous weekend’s rate was 73% from 457 auctions and last year, it was 62% from 517 auctions.
Canberra
Canberra reported a 41% clearance rate. According to Domain, there were 50 listings, 39 auctions and 17 sales whilst 22 homes were passed in.
Sales totalled $8,660,000 and the median sale price was $640,000. The most expensive property sold was a five-bedroom house in 113 Oodgeroo Av, Franklin for $1,085,000 by McGraths whilst the cheapest was two-bedroom townhouse in 8/57 Totterdell St, Belconnen for $370,000 by Ray White.
Brisbane
A preliminary clearance rate of 33% was reported last weekend. According to Domain, there were 36 listings, 24 auctions and nine sales whilst 15 homes were passed in.
Sales totalled $6,498,000 and the most expensive sale was six-bedroom house in 117 Adelaide St E, Clayfield for $2,800,000 by Ray White and Raine & Horne handled the cheapest sale, a three-bedroom house in 16 Coburg St E, Cleveland for $435,000.
Corelogic reported a 39% rate from 129 listings, 61 auctions and 24 sales whilst 30 properties were passed in. It also recorded 700 private sales.
Adelaide
Adelaide reported a 58% clearance rate, according to Domain. Of the 49 homes listed, 25 were auctioned and 18 sold under the hammer whilst seven were passed in.
Volumes totalled $8,606,500 and the median sale price was $626,000. The most expensive sale was a six-bedroom house in 8-10 Paringa Av, Somerton Park for $1,405,000 by Belle Property and cheapest was a three-bedroom house in 592 Military Rd, Largs North for $456,000 by Ray White.
Corelogic recorded a 67% rate from 64 listings, 27 auctions and 18 sales whilst seven properties were passed in. There were 204 private sales.
Tasmania
There were no auctions last weekend, but 144 homes sold privately, according to Corelogic.
Northern Territory
The Northern Territory reported a 50% rate from 11 listings, six auctions and three sales. There were also 14 private sales.
| Auction highlights this week Saturday, 6 July 2019 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 35/93 Elizabeth Bay Rd, Elizabeth Bay NSW 2011, 3 br Unit, RW Elizabeth Bay | $4,175,000 |
| Melbourne | 3/15 Morton Gr, Chelsea VIC 3196, 3 br Townhouse, Hocking Stuart Mentone | $2,000,000 |
| Adelaide | 8-10 Paringa Av, Somerton Park SA 5044, 6 br House, Belle Property Glenelg | $1,405,000 |
| Brisbane | 117 Adelaide St E, Clayfield QLD 4011, 6 br House, RW – New Farm | $2,800,000 |
| Canberra | 113 Oodgeroo Av, Franklin ACT 2913, 5 br House, McGrath – Projects | $1,085,000 |
| Most affordable | ||
| Sydney | 6 Balboa Pl, Willmot NSW 2770, 3 br House, Laing+Simmons Mount Druitt | $232,000 |
| Melbourne | 12/42 Gillies St, Fairfield VIC 3078, 1 br Unit, Miles Real Estate | $335,000 |
| Adelaide | 592 Military Rd, Largs North SA 5016, 3 br House, RW Semaphore | $456,000 |
| Brisbane | 16 Coburg St E, Cleveland QLD 4163, 3 br House, R&H Cleveland | $435,000 |
| Canberra | 8/57 Totterdell St, Belconnen ACT 2617, 2 br Townhouse, RW Canberra | $370,000 |
