This article is from the Australian Property Journal archive
THE residential property auction market resumed after the Easter holiday break and at the same time, the Melbourne median house price has smashed the $800,000 barrier for the first time and Canberra recorded the strongest growth of all the capitals.
Sydney
Sydney recorded a clearance rate of 75.6% last weekend from 506 listings, 361 auctions and 304 sales totalling $311.2 million, according to Domain Group’s Australian Property Monitors.
The clearance rate is higher than the 68.8% from 422 listings, 365 auctions and 275 sales totalling $325.6 million.
The median house and unit sale price was $1,315,500 and $880,500 respectively, compared to $1,285,000 and $783,550 respectively in the same weekend last year.
The Sydney home auction market resumes this Saturday following last weekend’s pause for the Easter holiday break as latest price data confirms the booming local conditions.
Domain chief economist Andrew Wilson said it comes as no surprise that the booming Sydney auction market with weekend clearance rates averaging above 80% this year has translated into strong prices growth.
Latest Domain data reports that the Sydney median house price surged by 2.8% over the March quarter to a new record high of $1,151,565. Sydney house prices have now increased by a remarkable 13.1% over the past year.
Sydney unit prices are also rising, up by 1.3% over the March quarter to a new peak of $717,899. Unit prices have now increased by 6.1% over the past year.
Melbourne
Melbourne also recorded a strong clearance rate of 78% from 603 auctions and 472 sales, according to the REIV. The total value of auction sales was $383.65 million.
In the same weekend year, the clearance rate was 75% from 538 auctions.
At the same time, there were 522 private sales last weekend totalling $366.73 million.
The median apartment auction price was $671,000, house was $845,500 and land was $675,000.
At the same time, the latest REIV data shows Melbourne’s median house price has recorded its strongest quarterly price growth since 2013 to smash the $800,000 barrier for the first time.
The citywide median increased 7.6% in the first three months of 2017 to a record high $826,000 – up more than $55,000 on December figures.
REIV president Joseph Walton said a range of factors had contributed to significant price growth across the city.
“Melbourne’s property market is experiencing a perfect storm with price increases driven by strong buyer demand, solid population growth, record low interest rates and low stock on market.
“The city’s buoyant auction market, combined with the strongest private sale market in seven years, has undoubtedly boosted Melbourne’s median house price,” Walton said.
While increases were recorded across the city, Melbourne’s middle suburbs were the main growth driver with the median house price increasing 6.1% over the quarter to just over $960,000. House prices in Templestowe in the north-east experienced the largest growth, up 17.6% in the March quarter to a median of more than $1.5 million.
Price growth was also recorded at the top end of the market with house prices in inner Melbourne increasing 5.8% to break the $1.5 million mark for the first time.
Solid price growth was also recorded in the apartment sector with the metropolitan Melbourne median up 3.8% to $583,000.
Regional Victoria also performed strongly in the March quarter, with the median house price up 4.1% to $377,000.
Brisbane
Brisbane delivered a clearance rate of 50% from 99 listings, 63 auctions of which 33 properties sold totalling $14.74 million, according APM. The median price was $757,000.
Across Queensland there were 310 auctions and so far 168 auctions were reported, of which the clearance rate was 40%.
The latest APM March quarter data shows the Brisbane median house price fell by 1.4% to $532,504, which was the sharpest quarterly decline reported by the local market since the September quarter 2011. Brisbane house prices increased by 3.4% over the year ending the March quarter which was the slowest annual rate of growth recorded since June 2013.
Recent record levels of apartment building continue to impact the Brisbane unit market with the median unit price falling again and down by 3.8% over the March quarter to $376,760. The March result was the sharpest quarterly decline in Brisbane unit prices recorded since December 2000. Prices have now fallen by 3.5% over the past year.
Adelaide
Adelaide had 73 listings, 37 auctions were reported and there were 24 sales, resulting in a clearance rate of 65%. The total value of auction sales is $12.45 million. The median sale price was $530,000.
Across South Australia, there were 107 listings, and 55 auctions of which the clearance rate was 60%.
According to Domain, Adelaide median house price increased by 1.8% to a new record high $514,853. The March growth rate was the highest since the December quarter 2015 with the median house price increasing over 10 consecutive quarters. Adelaide house prices are up by 4.9% over the past year.
Adelaide unit prices were steady over the quarter with the median remaining at $302,079. Although prices were flat over the quarter, the median has fallen marginally by 1.3% over the year ending the March quarter.
Canberra
Canberra had 46 listings, 41 auctions and 30 sales reported, representing a clearance rate of 68%. The total value of sales was $18.63 million and the median sale price was $625,000.
According to Domain, the Canberra median house price jumped by 5.3%, the highest rate of all the capitals. The Canberra median has now exceeded $700,000 for the first time and at $705,059 has increased by 10.4% over the past year. The March result was the highest quarterly growth rate reported by the local market since December 2009.
Canberra unit prices fell for the second consecutive quarter – down by 0.6% to $401,661. Lower unit prices reflect the recent surge in apartment construction with the median now down by 2.0% over the past year.
Perth
Perth had 41 listings, 17 auctions and a clearance rate of 35% was recorded.
Domain data shows the Perth median house price falling by 1.8% over the March quarter to a median of $561,165. The March result however followed an increase of 0.7% over the previous December quarter providing an early sign that the local market may be stabilising after a lengthy period of decline. Although Perth house prices were down by 3.0% over the year, this was nonetheless the lowest rate of annual decline recorded since June 2015.
Perth unit prices fell sharply over the March quarter down by 3.5% to $368,791, the lowest quarterly median price recorded since September 2012. The March result however followed rises over the previous two quarters, with annual prices now down by 5.1%.
Hobart
Hobart had eight listings and three auctions were reported, resulting in a clearance rate of 67%.
According to Domain, Hobart house prices jumped by 4.8% to $389,625. The March result followed the previous December quarter increase of 3.5% with the median house price rising by 11.9% the past year. Hobart house prices are now rising by the fastest rates since the previous strong market conditions in 2010.
Hobart unit prices have also increased sharply over the past year, up by 14.3% to a median of $294,493.
Darwin
Darwin had 10 listings, seven auctions and a clearance rate of 14% was reported.
The Darwin median house price increased by 2.9% over the March quarter to $589,914 although prices have fallen by 3.3% over the past year.
Darwin unit prices however continue to weaken reflecting recent record levels of new apartment supply pushing supply well ahead of demand. The median unit price has now fallen by 18.7 per cent over the past year to a March quarter result of $395,473.
| Auction highlights this week Saturday, 22 April 2017 (Source: APM) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 12 Agnes St, Strathfield NSW 2135, 4 br House, Devine Real Estate Strathfield | $5,400,000 |
| Melbourne | 13 Toorak Av, Toorak VIC 3142, 4 br House, Marshall White Stonnington | $5,733,000 |
| Adelaide | 31 River St, St Peters SA 5069, 6 br House, Belle Property Adelaide City | $1,600,000 |
| Brisbane | 79 Bage St, Nundah QLD 4012, 2 br House, RW Ascot | $2,550,000 |
| Canberra | 13 Throsby Cr, Narrabundah ACT 2604, 3 br House, RW – Kingston | $1,320,000 |
| Most affordable | ||
| Sydney | 2/8 Phillip St, Redfern NSW 2016, 0 br Studio, Exchange Prop Sales&Mgt | $357,000 |
| Melbourne | 73/145 Canterbury Rd, Toorak VIC 3142, 1 br Unit, RT Edgar Toorak | $247,500 |
| Adelaide | 9 Adina Ct, Modbury North SA 5092, 4 br House, HAR Brock Williams | $343,000 |
| Brisbane | 6 Ketch St, Russell Island QLD 4184, 3 br House, LJH Bay Islands | $145,000 |
| Canberra | 35/46 Paul Coe Cr, Ngunnawal ACT 2913, 3 br Townhouse, LJH Gungahlin | $360,000 |
Australian Property Journal
