This article is from the Australian Property Journal archive
RESIDENTIAL listings increased last weekend to signal the end of the winter auction season, however eager sellers might have jumped the gun too early.
Listings picked up in anticipation of the spring season, however demand did not match up.
Sydney
After showing promising signs at the start of August, the Sydney market declined further last weekend and ended August on a low – posting its fortnight result in 16 months, according to Domain’s Australian Property Monitors.
Last weekend in Sydney, 675 homes were listed for auction and 441 went under the hammer and 343 sold.
The clearance rate was 67.9%, down from the previous weekend’s 69.4% from 578 listings, 485 auctions and 339 sales.
It is significantly below the 80.7% recorded in the same weekend last year from 565 listings, 497 auctions and 408 sales.
The value of auction sales was also lower last weekend, totalling $316.8 million compared to $332.3 million in the previous weekend and substantially below the $538.3 million recorded last year.
“Sydney’s auction market ended winter with a thud on Saturday with clearance rates falling over consecutive weekends for the lowest non-holiday result since April 16 last year,” Domain’s chief economist Andrew Wilson said.
“Higher auction numbers may have contributed to the weekend’s lower result providing more choice for buyers and more competition for sellers,” he added. “The official start to the Sydney spring selling season next Saturday will again host about 650 auctions,”
Sydney recorded a median auction price of $1.2 million on Saturday, which was higher than the $1.16 million reported the previous weekend and the same as that recorded over the same weekend last year.
Wilson said the Sydney auction market has ended winter on a weaker note, although listings were significantly higher than recorded over the same period last year.
“Sydney auction clearance rates averaged 70.6% over winter, compared to 79% over autumn and 77.5% over winter last year.
“A total of 7795 weekend auctions were conducted over winter, lower than the 9040 auctioned over autumn, but well ahead of the 5785, or 34.7% higher, held last winter,” he continued.
“Although Sydney auction numbers will continue to rise through spring and likely remain ahead of last year’s totals, clearance rates are set to track lower as the lower interest rate energy driven by last year’s rate cuts dissipates,” Wilson forecast.
Melbourne
The clearance rate in Melbourne dipped slightly last weekend. According to the REIV, there were 836 auctions and 642 homes sold whilst 194 were passed in.
The clearance rate was 77%, which was down from 78% from 881 auctions in the previous weekend, and on par with the same weekend last year, which had 948 auctions.
The total value of auction sales was $672.22 million with a median house, apartment and vacant sale price of $970,000, $665,000 and $730,000 respectively.
At the same time, there were 309 private sales totalling $205.53 million.
Wilson said Melbourne’s auction market has ended winter with another healthy clearance rate with a vibrant spring selling season anticipated.
“Melbourne weekend auction clearance rates averaged 75.1% over winter, lower than the 78.1% averaged over autumn and the same rate as recorded over last winter.
“During winter 10,046 weekend auctions were held, which was lower than the 11,804 auctioned over autumn but well ahead of the 8073, or 24.4% higher, that were held last winter,” he said.
“Although Melbourne auction numbers will continue to rise through spring and likely remain ahead of last year’s totals, weekend clearance rates are set to remain above 70% despite the waning impact of the lower interest rate energy driven by last year’s rate cuts,” Wilson continued.
Canberra
Canberra recorded a solid clearance rate of 73%.
According to APM, there were 61 listings and 40 auctions reported, of which 29 properties sold totalling $18.95 million and a median of $734,000.
Adelaide
Adelaide posted a strong result with a clearance rate of 89% from 46 listings, 18 auctions and 16 sales totalling $8.19 million.
A median sale price of $627,500 was recorded.
Brisbane
Activity also picked up in Brisbane with 104 listings with 51 auctions reported of which 25 homes sold, resulting in a low clearance rate of 46%.
The total value of auction sales was $16.33 million and a median sale price of $756,000 was recorded.
Across Queensland, there were 281 listings and 178 auctions were reported, of which 56 homes sold under the hammer.
Perth
It was relatively quiet in Perth with only 38 listings, and 17 auctions were conducted with eight sales under the hammer.
Darwin
Last weekend there were nine properties listed for auction but only two went under the hammer and one sold, a four bedroom house at 5 Verburg Ct Stuart Park for $585,000.
Hobart
Hobart reported eight listings, six auctions and four sales.
| Auction highlights this week Saturday, 26 August 2017 (Source: APM) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 1503/61-69 Macquarie St, Sydney NSW 2000, 3 br Unit, Morton Circular Quay | $7,110,000 |
| Melbourne | 1 Anthony St, Glen Iris VIC 3146, 5 br House, Marshall White Stonnington | $5,770,000 |
| Adelaide | 4 Osborn Av, Beulah Park SA 5067, 3 br House, Real Estate Partners SA | $921,000 |
| Brisbane | 24 Orvieto Rd, Yeronga QLD 4104, 5 br House, McGrath Annerley/Yeronga | $1,505,000 |
| Canberra | 7 Weld St, Yarralumla ACT 2600, 3 br House, McGrath Woden | $1,390,000 |
| Most affordable | ||
| Sydney | 104E/138 Carillon Av, Newtown NSW 2042, 0 br Studio, R&H Newtown | $420,000 |
| Melbourne | 1/202A Pascoe Vale Rd, Essendon VIC 3040, 1 br Unit, Nelson Alexander Essendon | $277,000 |
| Adelaide | 3 Richard St, Para Hills SA 5096, 3 br House, LJH Walkerville | Modbury | $262,750 |
| Brisbane | 9 Sandra Ct, Deception Bay QLD 4508, 3 br House, Professionals Caboolture | $265,000 |
| Canberra | 3 Traill Pl, Charnwood ACT 2615, 3 br House, LJH Gungahlin | $401,500 |
Australian Property Journal
