This article is from the Australian Property Journal archive
AUCTION clearance rates bounced back strongly last weekend in the lead up to the Reserve Bank meeting this Tuesday, where it is expected to cut interest rates.
Buyers began to warm up last weekend, which signalled the end of the mid-winter market with activity poised to pick up in the coming weeks.
In Melbourne, an increase in auction listings was matched by a stronger clearance rate of 78% last weekend from 601 auctions, according to the REIV. It resulted in 468 properties selling totalling $407.41 million.
This is compared to 72% from 514 auctions in the previous weekend and 77% from 699 auctions in the same weekend last year.
At the same time there were 341 private sales totalling $217.5 million.
Domain Group’s chief economist Andrew Wilson said the Melbourne auction market now turn towards spring with seller activity rising and robust buyer activity to be sustained by the prospect of further cuts to already record-low interest rates.
“Predictably Melbourne’s robust late autumn early winter auction market has translated into solid prices growth with the median house price increasing by 7.4% over the year ending the June quarter with unit prices increasing more modestly – up by 2.7%.
‘Melbourne’s western suburban region has consistently produced high clearance rates this year and latest data reveals that the median house price increased by 12.1% over the past year to $511,335.
“The unit market also revealed strong growth in the outer east over the past year, with the median unit price increasing by 11.8% to $525,255,” he added.
Sydney also recorded a stronger clearance rate of 75.7%, according to Domain Group’s Australian Property Monitors.
There were 395 listings last weekend with 284 homes going under the hammer and 231 selling, resulting in clearance rate of 75.7% and total sales of $229.2 million. The clearance rate is an improvement from the low 70.3% in the previous weekend from 354 listings, 306 auctions and 232 sales totalling $237.3 million.
Although the clearance rate is almost on par with the 76.1% recorded in same weekend last year, that market was substantially stronger with 645 listings, 578 auctions and 467 sales totalling a whopping $515.9 million.
Wilson said whilst auction listings remain well below last year’s record levels, they are set to gradually rise over coming weeks as the market turns towards spring providing buyers with more choice in a clearly under-supplied marketplace.
“Sydney recorded a median auction price of $1,208,000 on Saturday, which was just below the $1,210,000 recorded the previous weekend. Saturday’s median was, however, 25.8% higher than the $960,000 recorded over the same weekend last year.
“Predictably Sydney’s robust late autumn-early winter auction market has translated into solid prices growth, with the median house price increasing 2.4% over the June quarter with unit prices increasing more modestly – up by 0.6%.
“Low interest rates are a key catalyst for robust auction markets and rising home prices with the cut to official rates in May enhancing buyer momentum. This week the Reserve Bank will meet to decide the direction of official interest rates over August,” Wilson said.
In other cities, Brisbane reported 101 listings, 54 auctions and 31 sales totalling $22.37 million. Adelaide recorded 83 listings, 44 auctions and 31 sales totalling $17.1 million. Finally Canberra had 31 listings, 29 auctions and 21 sales totalling $16.26 million.
| Auction highlights this week Saturday, 30 July 2016 (Source: APM) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 27 Ryrie St, Mosman NSW 2088, 5 br House, Black Diamondz Property Concierge | $3,450,000 |
| Melbourne | 17 McKinley Av, Malvern VIC 3144, 5 br House, Marshall White – ARMADALE | $4,980,000 |
| Adelaide | 19 Harvey St, Henley Beach SA 5022, 3 br House, Harris Real Estate – Glenelg | $860,000 |
| Brisbane | 47 Palm Av, Ascot QLD 4007, 6 br House, RW Ascot | $3,000,000 |
| Canberra | 27 Fishburn St, Red Hill ACT 2603, House, Luton Properties – Belcon | $1,300,000 |
| Most affordable | ||
| Sydney | 68 Woolana Av, Budgewoi NSW 2262, 4 br House, Sorensen Real Estate | $490,000 |
| Melbourne | 5/25 Ridley St, Albion VIC 3020, 2 br Unit, Burnham Deer Park | $190,000 |
| Adelaide | 43 Marmion Av, Blair Athol SA 5084, 3 br House, LJH Walkerville | Modbury | $355,000 |
| Brisbane | 13 Byrne St, Bundamba QLD 4304, 2 br House, Action Realty Ipswich FN | $220,000 |
| Canberra | 40 Mockridge Cr, Holt ACT 2615, 3 br House, Peter Blackshaw Real Estate Gungahl | $490,000 |
Australian Property Journal
