This article is from the Australian Property Journal archive
AUCTION listings picked up last weekend and buyers responded with 80% clearance rates recorded across three capital cities.
National
In the second auction weekend of 2020, 968 properties were scheduled for auction, according to Domain. 624 results were reported with 491 homes selling under the hammer, resulting in a preliminary clearance rate of 74.7%. Auction sales totalled $388 million.
Activity ramped up from the previous weekend where clearances were 68.3% from 402 listings, 284 auctions and 213 sales totalling $147.3 million.
Its an improvement on this the 49.7% rate reported time last year where there were 745 listings, 640 auctions and 353 sales, totalling $310.9 million.
AMP Capital chief economist Shane Oliver said the auction sales has started to pick up following the holiday season, but activity remains well down on boom time levels, between 2015 and 2018.
In the same weekend in 2018, $660.5 million worth of homes sold despite lower clearance rates of 63.4% compared to last weekend due to a staggering 1,225 listings and 1,035 auctions held, of which 715 properties sold.
This time in 2017 clearances were 74.9% from 1,253 listings, 1,133 auctions and 891 sales totalling $874.8 million, whilst in 2016, there were 977 listings, 903 auctions and 665 sales, resulting in a 69.9% rate and sales of $595.6 million.
Finally, in 2015 clearances were 74.7% from 1,092 listings, 987 auctions and 762 sales totalling $662.5 million.
Sydney
Torrential rain failed to dampen activity. Strong buyer turnout pushed the preliminary clearance rate higher to 80%, according to Domain. From the 402 properties listed, 294 were auctioned, 250 sold and 44 passed in.
Sales totalled $221.55 million, the median house and unit sale prices were $1,275,000 and $795,000. The most expensive sale was a five bedrooms house in 14 Bennett St, Curl Curl for $3,350,000 and cheapest was a one-bedroom apartment in 1/12 Adelaide St, West Ryde for $440,000.
Oliver expects the final rate will be around 76%, which is on par with the previous weekend’s 76% where there were 139 listings, 111 auctions and 95 sales totalling $81.1 million.
Oliver said sales are running 70% higher than a year, where clearances sat at a low of 54.3%. Of the 290 homes listed, 238 were auctioned and 151 sold totalling $158 million.
But last weekend’s sales are below 2018’s figure of $325.4 million, where clearances were 59.6% from 466 listings, 371 auctions and 251 sales.
It is also significantly lower than the $528.1 million recorded in 2017, where clearances were also higher at 80.2% from 535 listings, 476 auctions and 418 sales. In 2016, the rate was 70.6% from 347 listings, 313 auctions and 243 sales totalling $273.2 million and in 2015 the rate was 81.3% from 447 listings, 415 auctions and 352 sales totalling $360.2 million.
Melbourne
Melbourne also reported a high preliminary clearance rate last weekend, of 81%, according to the REIV. There were 303 auctions reported, 244 homes sold and 59 passed in of which 29 were on a vendor bid. In the previous weekend, clearances were 69% from 196 auctions and 59% from 308 auctions last year.
Last weekend’s auction volumes totalled $201.01 million. So far this year, more than half of auction sales in Victoria (110 of 200) took place in Melbourne’s outer suburbs, led by Craigieburn and Werribee with seven homes in each.
Domain reported a slightly lower preliminary rate of 75%. Of the 381 homes listed, 232 went under the hammer with 181 selling. Oliver expects the final rate will be around 74%.
Volumes totalled $131.1 million and the median house and unit sale prices were $795,500 and $623,500. The most expensive property sold was a one-bedroom house in 80 Ross St, Port Melbourne for $2,190,000 and cheapest was two bedrooms house in 4/58 Sharps Rd, Tullamarine for $310,000.
In the previous weekend clearances were 67% from 134 listings, 94 auctions and 69 sales totalling $41.5 million.
In the same weekend last year, the rate was 50.7% from 295 listings, 272 auctions and 143 sales totalling $114.5 million. In 2018 the rate was 68.3% from 550 listings, 484 auctions and 352 sales totalling $259.2 million.
This time in 2017 clearances were 72.8% from 473 listings, 427 auctions and 319 sales totalling $243.4 million and in 2016 it was 71.8% from 454 listings, 425 auctions and 315 sales totalling $249.3 million. In 2015 it was 73.8% from 465 listings, 426 auctions and 321 sales totalling $245.5 million.
Canberra
The nation’s capital was the third city to report an 80% plus clearance rate. According to Domain, of the 51 properties listed, 36 were auctioned and 30 sold whilst six passed in, resulting in rate of 83%.
Sales totalled $21.635 million and the median sale price was $800,000. The most expensive property sold was a four bedrooms house in 72 Arthur Cir, Forrest for $2,520,000 and cheapest was a three bedrooms house in 7 Halligan Pl, Page for $475,000.
Corelogic reported a 74% rate from 54 listings, 35 auctions and 26 sales whilst nine homes passed in.
Brisbane
Brisbane’s clearance rate slumped to 37% last weekend. According to Domain, there were 84 listings, 35 auctions but only 14 sales whilst 21 properties passed in.
Sales totalled only $6.419 million, the most expensive sale was a five bedrooms house in 10 Weal Av, Tarragindi for $1,800,000 and cheapest was a two bedrooms unit in 1/29 Noble St, Clayfield for $380,000.
The statewide clearance rate was higher at 43%, according to Corelogic. From the 256 homes listed, 90 went under the hammer and 39 sold whilst 46 passed in.
Adelaide
Adelaide was unable to sustain its solid performance from the previous weekend with clearances falling to 59%. According to Domain, there were 50 listings, 27 auctions and 16 sales whilst 11 homes passed in.
Sales totalled $7.291 million and the median sale price was $695,500. The most expensive property sold was a five bedrooms house in 43 William St, Hawthorn for $1,413,000 and cheapest was three bedrooms house in 5 Penny St, Ridgehaven for $335,000.
Perth
Western Australia also underperformed, posting a low 33% clearance rate, according to Corelogic. From the 33 properties listed, nine went under the hammer and three sold whilst six passed in.
Hobart
No auctions were held in Tasmania last weekend.
Darwin
The Northern Territory reported a 67% rate from 18 listings, 12 auctions and eight sales, according to Corelogic.
| Auction highlights this week Saturday, 8 February 2020 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 14 Bennett St, Curl Curl NSW 2096, 5 br House, McGrath Property Management (North) | $3,350,000 |
| Melbourne | 80 Ross St, Port Melbourne VIC 3207, 1 br House, Greg Hocking Holdsworth | $2,190,000 |
| Adelaide | 43 William St, Hawthorn SA 5062, 5 br House, Harris Real Estate Sales | $1,413,000 |
| Brisbane | 10 Weal Av, Tarragindi QLD 4121, 5 br House, Place Estate Agents Ascot | $1,800,000 |
| Canberra | 72 Arthur Cir, Forrest ACT 2603, 4 br House, Peter Blackshaw Manuka, Projects | $2,520,000 |
| Most affordable | ||
| Sydney | 1/12 Adelaide St, West Ryde NSW 2114, 1 br Unit, C21 Armstrong-Smith | $440,000 |
| Melbourne | 4/58 Sharps Rd, Tullamarine VIC 3043, 2 br House, Stockdale & Leggo Gladstone Park | $310,000 |
| Adelaide | 5 Penny St, Ridgehaven SA 5097, 3 br House, C21 First Choice North East | $335,000 |
| Brisbane | 1/29 Noble St, Clayfield QLD 4011, 2 br Unit, HAR Clayfield | $380,000 |
| Canberra | 7 Halligan Pl, Page ACT 2614, 3 br House, Independent Tuggeranong | $475,000 |
