This article is from the Australian Property Journal archive
THE auction market has immediately felt the impact of the renewed lockdown in Melbourne with homes scheduled for auctions been withdrawn or postponed in favour of private sales.
National
According to Domain, there were 976 properties listed last weekend across Australia, of which 498 were auctioned and 398 sold, resulting in a preliminary clearance rate of 54.9%. Volumes totalled $274.1 million and the median house and unit sale prices were $1,037,500 and $704,500.
AMP Capital chief economist Shane Oliver said extended JobKeeper support and bank payment holiday beyond September to avoid a fiscal cliff will help.
However he expects ongoing weakness and falling prices as higher unemployment, lower rents and cut back in immigration impacts the market.
Volumes are down from the previous weekend’s $368.1 million where there were 940 listings, 739 auctions and 506 sales, representing a clearance rate of 59.2%. In the same weekend last year clearance rates were 67% from 746 listings, 576 auctions and 418 sales totalling $405.8 million.
This time in 2018 rates were low at 49.6% but there were more properties on the market with 979 listings, 796 auctions and 457 sales totalling $427.9 million. In 2017 clearances were stronger at 65.8% despite the higher listings with 1,282 properties scheduled, 1,136 auctioned and 813 selling for $838.6 million.
In 2016 the rate was even higher at 70.7% from 1,030 listings, 928 auctions and 682 sales totalling $628.1 million. In 2015, clearances were 75.5 from 1,452 listings, 1,318 auctions and 1,040 sales totalling $973 million.
Sydney
Sydney’s market weakened despite New South Wales not been under stage three restrictions. According to Domain, there were 452 listings, 255 auctions and 207 sales resulting in a preliminary clearance rate of 64.3%. Volumes totalled $169.4 million and the median house and unit sale prices were $1,370,000 and $732,000.
The private sales market remains solid with 1,324 homes changing hands, according to Corelogic.
Oliver said Sydney’s auction market was weak and expects the final clearance rate will be around 60%, which will be slightly below the previous weekend’s 62.1% where there were 470 listings, 353 auctions and 260 sales totalling $211.9 million and last year’s rate of 71.7% from 284 listings, 227 auctions and 117 sales totalling $219.6 million.
This time in 2018 Sydney’s clearances 44.9% from 355 listings, 236 auctions and 145 sales totalling $180 million, whilst in 2017 the rate was 63.8% from 497 listings, 410 auctions and 301 sales totalling $410.4 million. In 2016 the rate was 71.9% from 366 listings, 321 auctions and 246 sales totalling $296.6 million and in 2015 the rate was sky high at 78.4% from 636 listings, 575 auctions and 476 sales totalling $535.2 million.
Melbourne
According to the REIV, a clearance rate of 88% was recorded from 210 auctions and 184 sales whilst 26 were passed in, 12 on a vendor bid. Auction sales totalled $148.69 million. The institute said the auction market in metro Melbourne’s outer ring has been growing with 1,520 homes sold under the hammer in the first half of 2020, up 9% compared to same time last year, led by Craigieburn with 104 sales, Mulgrave (56) and Epping (41).
The clearance rate is higher than previous weekend’s 71% from 364 listings, and 75% (287 auctions) this week last year. The REIV also recorded 339 private sales totalling $247 million.
Including the 149 properties withdrawn, Domain reported a lower preliminary rate of 46.4% from 417 listings, 168 auctions and 147 sales, totalling just $81.7 million. The median house and unit sale prices were $800,000 and $654,000.
Oliver expects the final rate will be approximately 43% and said Melbourne is doing a rerun of March and April lockdown.
In contrast the previous weekend also had 41 properties withdrawn. The rate was 57.6% from 373 listings, 308 auctions, 201 sales totalling $130.4 million. This time last year, clearances were 67.1% from 336 listings, 257 auctions and 188 sales totalling $149.5 million, only 23 homes were withdrawn.
In 2018 the rate was 52.1% from 481 listings, 444 auctions and 244 sales totalling $198.4 million and in 2017 it was 71.6% from 611 listings, 573 auctions and 431 sales totalling $365.9 million.
In 2016 there were 507 listings, 478 auctions and 366 sales totalling $288.2 million, representing a clearance rate was 74.8%. In 2015 the rate was 75.1% from 640 listings, 599 auctions and 462 sales totalling $371.3 million.
Canberra
Clearance rates in the nation’s capital fell to 53% after rising over 85% in the previous weekend, according to Domain.
There were 23 listings, 19 auctions and 10 sales whilst nine properties passed in, totalling $5.7 million. In comparison, the previous weekend’s rate was 85% from 33 listings, 24 auctions and 22 sales totalling $16.62 million.
Corelogic reported a higher rate of 74% for the ACT, from 41 listings, 27 auctions and 20 sales whilst seven homes passed in. It also recorded 47 private transactions.
Brisbane
Brisbane’s clearance rate improved to 43%, according to Domain. There were 55 listings, 37 auctions and 20 sales totalling $8.9 million with a median price of $870,000.
Clearances improved on the previous weekend’s 27% from 42 listings, 15 auctions and six sales totalling $3.66 million.
Across Queensland the rate was 45% from 125 listings, 44 auctions and 20 sales whilst 23 properties passed in. Corelogic also recorded 824 private sales.
Adelaide
Adelaide reported a 67% clearance rate from 29 listings, 19 auctions and 14 sales totalling $8.30 million with a median price of $725,500, according to Domain.
According to Corelogic, the rate across South Australia was 72% from 48 listings, 25 auctions and 18 sales whilst five properties passed in. At the same time, 210 homes sold privately.
Perth
Western Australia had 14 listings but only three auctions were recorded of which one sold, whilst two passed in. There were 340 private transactions, according to Corelogic.
Hobart
Tasmania recorded one auction but the property failed to sale. Meanwhile 164 homes sold privately, according to Corelogic.
Darwin
The Northern Territory recorded four listings, two listings and one sale, resulting in a 50% clearance rate. There were also 12 private sales, according to Corelogic.
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 3/85 Raglan St, Mosman NSW 2088, 5 br House, Belle Property Mosman | $4,550,000 |
| Melbourne | 1018 Drummond St, Carlton North VIC 3054, 4 br House, Nelson Alexander Carlton | $2,802,500 |
| Adelaide | 13 Willingale Av, Lockleys SA 5032, 5 br House, Gary J Smith Plympton | $2,050,000 |
| Brisbane | 30 Guthrie St, Paddington QLD 4064, 5 br House, RW at The Entertainment Quarter | $1,750,000 |
| Canberra | 18 Wagga St, Farrer ACT 2607, 5 br House, Luton Properties – Weston Creek and Molonglo Valley | $1,240,000 |
| Most affordable | ||
| Sydney | 7/19 Rowe St, Eastwood NSW 2122, 1 br Unit, Tracy Yap Realty | $426,000 |
| Melbourne | 215/358 Moreland Rd, Brunswick West VIC 3055, 1 br Unit, Barry Plant Coburg | $390,000 |
| Adelaide | 4 Silicate Av, Taperoo SA 5017, 3 br House, HAR Smith | $500,000 |
| Brisbane | 8 Inwood St, Wooloowin QLD 4030, 2 br House, HAR Solutions Group | $604,000 |
| Canberra | 10 Jindivik Pl, Scullin ACT 2614, 3 br House, LJH Belconnen | $555,000 |
