This article is from the Australian Property Journal archive
STAGE 3 restrictions in greater Melbourne continued to keep a lid on auctions but homes for sale by private treaty are selling quicker than a year ago.
National
A preliminary rate of 55.1% was recorded across Australia on the weekend, according to Domain. There were 1,188 listings, 644 auctions and 513 sales totalling $371.2 million. The median house and unit sale prices were $1,075,000 and $710,000.
AMP Capital chief economist Shane Oliver said the result reflects the lockdown in Melbourne, which is keeping sales down and withdrawals up, whilst Sydney remains weak.
Oliver said ongoing income support such as JobKeeper is continuing to help the property market avoid a sharp fall in home prices.
He added that although the JobKeeper and JobSeeker extensions will help turn the fiscal cliff into a “fiscal slope”, the negatives around high effective unemployment, the weak rental market and the collapse in immigration point to ongoing falls in prices into next year, particularly in Sydney and Melbourne.
The result is inline with the previous weekend’s 52.3% where 1,050 properties were listed, 638 were auctioned and 481 sold under the hammer totalling $350.9 million. This time last year clearances were 65.6% from 956 listings, 803 auctions and 568 sales totalling $537.4 million. In 2018 the rate was 51% from 1,318 listings, 1,088 auctions and 622 sales totalling $595.3 million.
In the same weekend in 2017 the rate was 67.3% from 1,468 listings, 1,339 auctions and 964 sales totalling $953.5 million, in 2016 it was 70% from 1,266 listings, 1,135 auctions and 849 sales totalling $834.1 million and in 2015 the rate was 74.2% from 1,620 listings, 1,460 auctions and 1,130 sales totalling $1.055 billion.
Sydney
Sydney’s market remains weak with clearances expected to fall further. A preliminary rate of 63.5% was reported by Domain. Of the 546 homes listed, 339 were auctioned and 268 sold totalling $220.2 million. The median house and unit sale prices were $1,312,500 and $875,000.
Oliver predicts the final rate will be around 60%, which is marginally lower than the previous weekend’s 61.7% from 472 listings, 324 auctions and 248 sales totalling $216.5 million. This time last year the rate was 70.4% and there were 346 listings, 286 auctions and 224 sales totalling $258.1 million. In 2018 the rate was 48.8% and there were 423 listings, 314 auctions and 186 sales totalling $234.1 million.
In 2017 clearances were 63.2% from 535 listings, 454 auctions and 327 sales totalling $435 million; in 2016 they were 71.7% from 390 listings, 339 auctions and 271 sales totalling $345.3 million and in 2015, it was 76.9% from 715 listings, 642 auctions and 527 sales totalling $583.3 million.
Melbourne
Excluding withdrawn properties, the REIV reported a 79% rate last weekend from 242 auctions and 190 sales whilst 52 passed in, 20 on a vendor bid. In the previous weekend the rate was 80% from 251 auctions and last year it was 72% from 472 auctions. Auction volumes totalled $170 million.
Meanwhile 262 homes sold privately totalling $170 million. REIV president Leah Calnan said despite the pandemic, residential property in Victoria is selling quicker now than it was 12 months ago.
Private treaty sales data shows the average home spent 41 days on the market before being sold, down from 44 days a year ago.
Homes in metropolitan Melbourne are being sold within 39 days on average, improving on the 42 days it took in June 2019.
“This is a great time to sell your property, a relatively lower volume of property listings is producing strong prices and driving down the selling time,” she said.
| Days on Market, Private Sales | |||
| June 2020, Seasonally Adjusted | |||
| Region | Jun-20 | May-20 | Jun-19 |
| INNER MELBOURNE | 38 | 40 | 43 |
| MIDDLE MELBOURNE | 37 | 36 | 42 |
| OUTER MELBOURNE | 39 | 40 | 40 |
| METRO MELBOURNE | 39 | 40 | 42 |
| REGIONAL VICTORIA | 60 | 57 | 58 |
| VICTORIA TOTAL | 41 | 41 | 44 |
| Source: REIV | |||
Including withdrawn properties, Domain reported a preliminary clearance rate of 45.4%. Of the 527 listings, 203 were withdrawn and 229 homes were auctioned resulting in 196 sales.
Volumes totalled $119.2 million and the median house and unit sale prices were $920,000 and $650,000.
Oliver expects the final rate will be 44%, which is on par with the previous weekend’s 43.2% from 482 listings, 239 auctions, 188 sales and 196 withdrawn, totalling $103.9 million. This time last year, clearances were 67.6% from 489 listings, 423 auctions and 298 sales totalling $251.8 million.
In 2018 the rate was 52.9% from 717 listings, 613 auctions and 355 sales totalling $302.6 million; in 2017 it was 72.5% from 736 listings, 713 auctions and 532 sales totalling $452.5 million; in 2016 clearances were 72.6% from 660 listings, 618 auctions and 466 sales totalling $414.2 million and in 2015 it was 75.15 from 735 auctions, 672 listings, 517 sales totalling $412 million.
Canberra
Clearances rates remain strong at 73% last weekend despite a higher number of auctions, according to Domain. There were 39 listings, 32 auctions and 24 sales totalling $18.524 million and the median sale price was $878,000.
It is below the rate of 86% from 23 listings, 21 auctions and 19 sales totalling $14.34 million in the previous weekend.
According to Corelogic, the rate was 81% from 52 listings, 36 auctions and 29 sales whilst seven homes passed in. It also recorded 81 private transactions.
Brisbane
Brisbane recorded a 52% rate, according to Domain. Of the 45 homes listed, 29 went under the hammer and 15 sold for $8.7 million. The median sale price was $672,500.
Across Queensland, Corelogic reported a 54% clearance rate from 145 listings, 56 auctions and 30 sales whilst 26 passed in. There were also 854 private sales.
Adelaide
Adelaide reported a 67% rate from 31 listings, 15 auctions and 10 totalling $4.57 million, according to Domain.
Corelogic reported a 55% rate across South Australia. There were 70 listings, 31 auctions and 17 sales whilst 14 failed to sell. There were also 216 private sales.
Perth
Western Australia’s clearance rate was 33% from 14 listings, six auctions and two sales whilst four properties passed in, according to Corelogic. There were 380 private sales.
Hobart
Tasmania did not record any auctions last weekend but 116 properties sold privately, according to Corelogic.
Darwin
The Northern Territory reported a 50% clearance rate from five listings, two auctions and one sale. Corelogic also recorded 10 private sales.
| Auction highlights this week Saturday, 25 July 2020 (Source: APM) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 356 Edgecliff Rd, Woollahra NSW 2025, 5 br House, The Agency Inner West | $8,100,000 |
| Melbourne | 16 Rushall Cr, Fitzroy North VIC 3068, 4 br House, Nelson Alexander Commercial | $3,675,000 |
| Adelaide | 43 Myrtle Rd, Seacliff SA 5049, 4 br House, RW Brighton | $1,325,000 |
| Brisbane | 50 Kingsholme St, Teneriffe QLD 4005, 3 br House, RW – New Farm | $2,756,500 |
| Canberra | 3 Booroondara St, Reid ACT 2612, 3 br House, Luton Properties – Manuka | $1,870,000 |
| Most affordable | ||
| Sydney | 9/20-22 Speed St, Liverpool NSW 2170, 2 br Unit, C21 Combined Liverpool | $286,000 |
| Melbourne | 15/51 Chapel St, St Kilda VIC 3182, 1 br Unit, Gary Peer | $365,000 |
| Adelaide | 4 Bond St, Northfield SA 5085, 3 br House, Xsell Property – RLA267857 | $515,500 |
| Brisbane | 55/1230 Creek Rd, Carina Heights QLD 4152, 2 br Townhouse, RW East Brisbane Property Management | $315,000 |
| Canberra | 12 Mollison St, Scullin ACT 2614, 3 br House, LJH Belconnen | $576,000 |
