This article is from the Australian Property Journal archive
AUCTION clearance rates trended lower as sellers continue to flood the market to take advantage of the housing boom while it lasts.
National
According to Domain, listings remain elevated last weekend with 2,401 homes on offer across Australia. There were 1,796 auctions and 1,421 sales reported resulting in a preliminary clearance rate of 79.1%.
Sales totalled $1.34 billion and the median house and unit sale prices were $1,273,000 and $812,500.
Archistar chief economist Dr Andrew Wilson said clearance rates have fallen for the fourth consecutive week.
“Although home auction markets reported more boomtime results at the weekend, clearance rates are now clearly trending lower impacted by a continuing surge of sellers keen to take advantage of strong buyer competition – while it lasts.
“2401 homes were reported as listed for auction on Saturday which, although lower than last weekend’s all-time May record 2569, nonetheless again provided plenty of choices for buyers, reflecting increased supply, the national average weekend clearance rate was down again on Saturday, falling from 83.1% to 80.8% – the lowest result since the season opener 77.7% recorded on the January 30th.
“Clearance rates have now fallen for 4 consecutive weekends and are now well below the peak result of 88.5% recorded on March 5th – although still clearly in favour of sellers,” Wilson said.
According to Domain, listings declined from the previous weekend’s 2,569, where 2,294 auctions and 1,766 sales were recorded totalling $1.68 billion and representing a 77% clearance rate.
Due to the national COVID-19 lockdown last year, there were only 268 listings, 238 auctions and 141 sales resulting in a 59.2% rate and sales totalling $162.4 million.
Sydney
Listings dipped below 1,000 homes properties in the harbour city. Domain reported 990 auctions scheduled of which 717 went under the hammer and 584 sold resulting in an 81.5% preliminary clearance rate.
Volumes totalled $664.4 million, the median house and unit sale prices were $1,641,000 and $994,000.
Wilson said although clearance rates clearly remained high, they nonetheless continue to track lower.
“Surging auction numbers since the resumption of full activity following the lengthy April holiday distractions have impacted clearance rates, with significantly more choices for buyers – although clearly remaining a sellers’ market.
“The Northern Beaches was yet again Sydney’s top performing region at the weekend with a clearance rate of 89.1% followed by the City and East 87.9% and the Inner West 87.6%. The South West however was lower again at the weekend down to 72.2% with the West just above at 74.2%. The clearance rate for houses was 82.8%, with units higher at 83.4%.
AMP Capital chief economist Shane Oliver expects the final rate will be around 79%, which is slightly higher than the previous weekend’s 78.3% where there were 1,016 listings, 957 auctions and 749 sales totalling $853.6 million. This time last year it was 69.6% from 142 listings, 112 auctions and 78 sales totalling $106.6 million.
Melbourne
Melbourne reported 1,159 listings, 887 auctions and 686 sales totalling $568.1 million. According to Domain, the preliminary clearance rate was 77%.
Wilson said the Melbourne market recorded its lowest clearance rate for the year so far with waves of listings providing more choices for buyers and placing downward pressure on results.
Oliver expects the final rate will be 76%, which is slightly above the previous weekend’s 75.4% where there 1,252 homes listed, 1,098 auctions and 828 sales totalling $672.9 million. Last year it was 49.3% from 80 listings, 75 auctions and 37 sales totalling $36.6 million.
The North reported the top regional clearance rate on Saturday with 83.7% followed by the Outer East 82.8%. The clearance rate for houses was 80.6%, with units well down at 71.6%.
The REIV reported a 83% last weekend from 963 auctions and 796 sales totalling $950 million.
It also recorded 159 private transactions totalling $170 million.
Canberra
Canberra was the best performing market on the weekend with Domain reporting a 92% clearance rate.
Of the 57 homes listed, 52 went under the hammer and 48 sold for a total $37.88 million. The median sale price was $840,000.
Corelogic reported 68 private sales.
Brisbane
Brisbane clearances dipped to 64% from 74% in the previous weekend. Domain recorded 98 listings, 69 auctions and 44 sales.
Volumes totalled $33.71 million, and the median sale price was $1,325,000.
Across Queensland clearances were 70% from 307 listings, 109 auctions and 76 sales, according to Corelogic. There were also 1,214 private sales.
Adelaide
Adelaide was the second-best performing market last weekend. According to Domain, of the 97 homes listed, 71 were auctioned and 59 sold under the hammer, resulting in a 83% rate.
Volumes totalled $35.10 million and the median sale price was $725,000.
Corelogic reported 381 private sales.
Perth
Corelogic reported a 75% rate in Western Australia. There were 33 listings, eight auctions and six sales. The private sales market transacted 617 homes.
Hobart
Tasmania did not report any auctions last weekend but 200 homes sold privately, according to Corelogic.
Darwin
The Northern Territory also did not report any auction activity last weekend but 23 properties sold privately, according to Corelogic.
| Auction highlights this week Saturday, 15 May 2021 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 55 Ocean View Rd, Freshwater NSW 2096, 4 br House, Clarke & Humel Property Management Pty Ltd | $8,800,000 |
| Melbourne | 312 Danks St, Middle Park VIC 3206, 6 br House, Marshall White Bayside | $7,900,000 |
| Adelaide | 48 Tarlton St, Somerton Park SA 5044, 4 br House, Harris Real Estate – Copper Coast R | $2,200,000 |
| Brisbane | 253 Kent St, Teneriffe QLD 4005, 3 br House, RW – New Farm | $2,525,000 |
| Canberra | 23 Barron St, Deakin ACT 2600, 3 br House, Blackshaw City & Inner North | $1,800,000 |
| Most affordable | ||
| Sydney | 4/19 Rawson St, Wiley Park NSW 2195, 2 br Unit, McGrath Bankstown | $367,000 |
| Melbourne | 8/3 Hampton Pde, West Footscray VIC 3012, 2 br Unit, Jas Stephens Real Estate Yarraville | $312,000 |
| Adelaide | 109 Whites Rd, Salisbury North SA 5108, 3 br House, HAR Sergeant Property | $311,000 |
| Brisbane | 24 Gladewood Dr, Daisy Hill QLD 4127, 3 br House, Elders RE Shailer Park | $447,000 |
| Canberra | 7 Kellermann Cl, Holt ACT 2615, 3 br Townhouse, Blackshaw Gungahlin | $515,000 |
