This article is from the Australian Property Journal archive
THE summer auction season has begun with some markets sizzling and others fizzling last weekend.
The Melbourne auction market delivered one of its best results this year as a follow up to the super Saturday in the previous weekend.
According to the REIV, a clearance rate of 79% was recorded last weekend from 1,094 auctions, with 867 properties selling under the hammer whilst 227 were passed in.
The clearance rate was higher than the previous weekend’s 76% from 1,476 auctions and well ahead of the 65% recorded in the same weekend last year from 1,539 auctions.
The total value of auction sales was $846.54 million. At the same time, 389 homes sold privately totalling $274.41 million.
Domain Group’s chief economist Andrew Wilson said Melbourne recorded its highest clearance rate in two months and one of its highest results of the year.
“The Melbourne’s market continued its strong spring performance with more robust results over November. The city reported an overall monthly clearance rate of 75.9%, just ahead of the 75.6% of the previous month and well up on the 69% in November last year.
“Melbourne’s November clearance rate was the third highest on record for that month and the highest November result since 2009,” Wilson said.
Although he noted that auction numbers were well down at the weekend compared to the previous weekend, which may have contributed to the higher clearance rate.
At the end of November, auction numbers remain well below last year’s total, with 4,485 properties going under the hammer, down 12.1% when compared to the same period last year.
According to Domain, the north-east recorded the highest clearance rate of 87% on the weekend, followed by the outer east with 83.2%, the north with 83.1%, the west with 82.1%, the inner city with 80.9%, the inner south with 79.6% and the highest number of sales at 129, the inner east with 74.8% and the south-east with 72%.
Melbourne recorded a median auction price of $851,000 on Saturday, just below the $856,000 reported the previous weekend but 10.5% higher than the $770,000 over the same weekend last year.
Meanwhile Sydney’s market started summer on a weaker note – recording its lower result in over four months, despite fewer properties going under the hammer.
According to Domain, Sydney reported a clearance rate of 75.8% last weekend, which was lower than the 78.8% in the previous weekend.
There were 874 listings with 570 auctions and 479 sales reported, totalling $496.8 million. This is down from the previous weekend’s super Saturday’s 961 listings, 801 auctions and 652 sales totalling $686.6 million.
Despite the weaker performance, the clearance rate was significantly higher than the 51.7% recorded in the same weekend last year, from 887 listings, 662 auctions and 419 sales totalling $499.3 million.
“Although Saturday’s rate was the lowest recorded by the local market for over four months, it was nonetheless still a good result for sellers and reflected the surge in listings over recent weekends,” Wilson said.
“Sydney’s home auction market continued its strong spring performance with more robust results over November. Sydney reported an overall monthly clearance rate of 74.9%, which was just below the 76% recorded over the previous month, but well ahead of the 61% recorded over November last year.
“Auction numbers, however, remain well below last year’s total with 8762 fewer auctions conducted over the first 11 months of this year compared to the same period last year – a steep fall of 24.5%,” he added.
“The top performer was the Blue Mountains, where the single reported auction sold under the hammer. This was followed by the central coast with a clearance rate of 94.7%, the northern beaches still strong with 88.1%, the lower north with 82.6%, the inner west with 79.3% and the most sales at 69, the city and east with 78.9%, the upper north shore with 77.5%, the south with 73.9%, Canterbury Bankstown with 72.7%, the west with 63%, the north west with 62.1% and the south west with a clearance rate of 54.8%.
“Next weekend will present another stringent test for the market with about 900 auctions to be conducted,” Wilson said.
Sydney recorded a median auction price of $1.2 million on Saturday, which was lower than the $1.27 million recorded the previous weekend. Saturday’s median was however 8.1% higher than the $1.11 million recorded over the same weekend last year.
Canberra posted a clearance rate of 61% from 81 listings, 57 auctions and 36 sales totalling $18.59 million. The median price of homes sold on the weekend was $667,000.
Meanwhile Brisbane’s clearance rate dipped to 47% from 148 listings, 53 auctions and 27 sales. The total value of sales was $16.40 million and the median price was $797,500.
Finally Adelaide had 106 listings and 52 properties were reported for auction with 32 selling, resulting in a clearance rate of 62%. The total value of properties sold was $17.90 million and the median price was $645,000.
| Auction highlights this week Saturday, 3 December 2016 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 23 Parriwi Rd, Mosman NSW 2088, 5 br House, Belle Property Mosman | $6,480,000 |
| Melbourne | 49 Berkeley St, Hawthorn VIC 3122, 3 br House, Jellis Craig Boroondara Group, | $5,100,000 |
| Adelaide | 44 Barnard St, North Adelaide SA 5006, 4 br House, Smallacombe RE | $1,475,000 |
| Brisbane | 88 Laurel Av, Chelmer QLD 4068, 5 br House, Belle Property Sherwood | $2,300,000 |
| Canberra | 30 La Perouse St, Griffith ACT 2603, 3 br House, RW – Kingston | $1,370,000 |
| Most affordable | ||
| Sydney | 10/1-3 Shadforth St, Wiley Park NSW 2195, 2 br Unit, RALPH First Real Estate – Lakemba | Belmore | $370,000 |
| Melbourne | 8/12-18 Margaret Cr, Braybrook VIC 3019, 1 br Villa, Sweeney EA StAlbans/Snshn | $268,000 |
| Adelaide | 4 Tangerine Ct, Golden Grove SA 5125, 4 br House, FN RE Burton Grvs RLA1866 | $360,000 |
| Brisbane | 21 The Esplanade, Caboolture QLD 4510, 3 br House, ELD – Morayfield | $220,000 |
| Canberra | 39 Norriss St, Chisholm ACT 2905, 2 br House, McGrath Woden | $437,000 |
Australian Property Journal
