This article is from the Australian Property Journal archive
IT was back to business for the residential property auction market last weekend following a lull in the previous week due to the federal election.
The Melbourne market delivered a strong clearance rate of 77% on the weekend from 469 auctions and 362 sales, according to the REIV. The total value of auction sales was $263.81 million. At the same time, there were 359 private sales totalling $219.95 million.
During the election weekend, clearance rate of 70% was recorded from only 225 auctions. Compared to the same weekend last year, the clearance rate was 74% from 594 auctions.
Melbourne recorded a median auction price of $650,000 on Saturday, which was 1% lower than the $655,000 recorded over the same weekend last year, according to Domain’s Australian Property Monitors.
Domain Group’s chief economist Andrew Wilson said clearance rates are now trending upwards compared to the same time last year, when the market was clearly on the slide.
“Auction numbers also remain at healthy levels for the mid-winter market, providing reasonable choice for buyers in most regions and price ranges.
“Auction numbers, although typically lower during the winter, are set to remain robust for this time of the year with around 550 listings scheduled next weekend,” he added.
The Sydney market also posted a stronger result with a clearance rate of 75.4%, an improvement from the previous election weekend’s 73.5% – although well below the boom-time 80% reported in the same weekend last year, according to APM.
Wilson said relatively low auction numbers continue to characterise the Sydney market, with the strong competition amongst buyers for a smaller pool of available properties becoming a significant driver of robust clearance rates.
Only 419 properties were listed for auction last weekend, well below the 622 properties in the same weekend last year.
Of the 419 listings, 299 auctions and 251 sales were reported totalling $228.5 million. Compared to the same weekend last year, there were 622 listings, 562 auctions and 460 sales totalling $497.9 million, according to APM.
Sydney recorded a median auction price of $1,045,500 on Saturday, which was lower than the $1.1 million recorded last weekend. Saturday’s median was 7.5% higher than the $972,500 recorded over the same weekend last year. A total of $228.5 million was reported sold at auction in Sydney at the weekend.
Wilson said the Sydney home auction market continues to record healthy results for sellers with strong buyer competition for scarce listings in most regions and price-ranges.
“Lower auction numbers will continue to characterise the market over coming weekends, with just over 300 auctions expected next weekend — around half the number auctioned over the same weekend last year.
“The June quarter inflation data due to be released by the Australian Bureau of Statistics on July 27 will provide a key determinant of future rate settings, with another low result likely to activate the Bank. Political uncertainly both locally and internationally can only add to the case for more stimulus, given a clearly underperforming national economy,” Wilson said.
Meanwhile Canberra reported 43 listings, 38 auctions and 30 sales totalling $18.33 million. The median price was $570,000.
Brisbane reported 93 listings, 42 auctions and 18 sales totalling $13.76 million with a median of $766,000.
Finally Adelaide had 50 listings, 27 auctions and 22 sales totalling $14.995 million and median of $608,000.
| Auction highlights this week Saturday, 9 July 2016 (Source: APM) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 17 Firth Av, Strathfield NSW 2135, 4 br House, Georges Ellis & Co | $4,120,000 |
| Melbourne | 12 Glen Huntly Rd, Elwood VIC 3184, 4 br House, Chisholm & Gamon Property – Elwood | $2,465,000 |
| Adelaide | 287 Esplanade, Henley Beach SA 5022, 4 br House, T&T Real Estate Norwood | $2,675,000 |
| Brisbane | 1 Sutherland Ct, Mount Ommaney QLD 4074, 6 br House, NGU Real Estate – East Brisbane | $2,600,000 |
| Canberra | 18 Bannister Gdns, Griffith ACT 2603, 2 br House, Luton Properties – Dickson | $1,370,000 |
| Most affordable | ||
| Sydney | 1/61 Howarth St, Wyong NSW 2259, 2 br Unit, LJH Wyong | $280,000 |
| Melbourne | 2/11 Aberdeen St, Brunswick VIC 3056, 1 br Unit, Ray White Brunswick | $271,000 |
| Adelaide | 2/12-14 Fooks Tce, St Kilda SA 5110, 2 br Unit, Professionals Salisbury | $183,000 |
| Brisbane | 20 Arakurta St, Lota QLD 4179, 3 br House, REMAX First Choice Advantage | $305,000 |
| Canberra | 109/68 Hardwick Cr, Holt ACT 2615, 2 br Unit, LJH Belconnen | $288,000 |
Australian Property Journal
