First week of Spring auctions
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Sep 3, 2018
First week of Spring auctions
The first weekend of spring saw a total of 1,752 capital city auctions, a decrease on last week’s 1,915 auctions held and lower than over the same week last year when 2,074 homes went to auction.
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Image supplied by McGrath14 Woonona Avenue, Wahroonga sold by Alex Mintorn and Luci Hollands of McGrath, as featured on Luxury List
Although volumes are lower over the week, this is consistent with previous years where the spring selling season didn’t kick off until late September.
However according to CoreLogic, with a very different market at present; particularly relative to last year, it’s likely vendors will remain reluctant as property values continue to decline and volumes continue to track somewhat lower each week when compared to recent years.
Source: CoreLogic
The lower week-on-week volumes returned a preliminary auction clearance rate of 58.2 per cent, up on the 54.6 per cent final clearance rate over the week prior.
New South Wales
There were 662 auctions held in Sydney this week returning a preliminary auction clearance rate of 58.6 per cent.
In comparison, last week there were 721 auctions held with just over half successful (53.2 per cent), while this time last year, 65.5 per cent of the 779 auctions held were successful.
14 Woonona Avenue, Wahroonga was sold for $2.825 million by Alex Mintorn from McGrath.
“The buyer was local and had been looking for about 12 months for the right historic property to come up.
“They had seen several late 1800 homes, and we reached out in the beginning of the campaign but they only saw it for the first time on Saturday, and bought it on the same day."
There were four registered bidders in total at the auction.
Mr Mintorn said there was an enormous social media campaign which reached 120,000 people in three weeks.
“It’s the biggest viewing we have had of a property on social media."
14 Woonona Avenue, Wahroonga sold by Alex Mintorn and Luci Hollands of McGrath, as seen on Luxury List
Mr Mintorn said the market in Wahroonga is “Hot and cold. The top end of the market is still hotly demanded and undersupplied”.
“Unique properties like this one which rarely come up perform well in any market, there is always a healthy appetite.
“The last two weeks have been noticeably busier as far as enquiry on property and the number of people in open homes.
“Three weeks ago in the middle of winter most people were waiting for the spring market,” Mr Mintorn continued.
“Now there is more supply, more buyers, and more urgency in the marketplace.”
Mr Mintorn said he sold three homes over the weekend, all of which had multiple bidders competing.
Related reading: "Buyers frustrated with lack of stock" in Melbourne market
Victoria
Melbourne had 810 auctions over the week, returning a preliminary clearance rate of 59.1 per cent, in comparison to last week when 56.5 per cent of the 899 auctions cleared.
One year ago, there were 976 auctions held in Melbourne, returning a much higher clearance rate of 71.3 per cent.
Luke Sacco of Nelson Alexander sold 67 Victoria Road, Northcote for $2.405.5 million to a family relocating from Footscray.
The auction was fairly competitive with six bidders.
Mr Sacco said the Northcote market is “Pretty strong. Like all markets it has leveled off a fraction, but good families homes have strong demand”.
“This was a good house on good land, with a heap of interest,” said Mr Sacco.
67 Victoria Road, Northcote sold by Luke Sacco and Tom Alexiadis of Nelson Alexander, as seen on Luxury List
Gil King, chief executive officer of REIV said “Melbourne’s outer ring suburbs enjoyed solid clearance rates over the weekend: Craigieburn topped the auction market with nine sales and an 82 per cent clearance rate while Mernda cleared all seven listings, showing strong demand in affordable homes in the area as six of them were sold under $550,000”.
“The Middle suburbs hosted 40 per cent of total auction sales last week, led by Bentleigh East and Glen Waverley with seven properties in each.
“With an average 76 per cent clearance rate last week, regional towns have been competitive so far this year. Mildura sold all three listings under the hammer over the weekend.”
Related reading: Is the $50 billion Melbourne suburban rail loop the answer for congestion and housing?
Queensland
Brisbane had 112 auctions over the week, returning a preliminary clearance rate of 45.9 per cent, compared to last week when 40.3 per cent of the 104 auctions cleared.
One year ago, there were 137 auctions held, returning a very similar clearance rate of 45.6 per cent.
44 Fitzwilliam Street, Carrara sold prior to auction for $1.47 million to a Chinese investor.
Sam Guo of Ray White said the property was targeted at both the Australian and Chinese market and was advertised through Chinese social media and newspapers.
44 Fitzwilliam Street, Carrara sold by Sam Guo and Julia Kuo of Ray White, as seen on Luxury List
“The home was listed with another agent previously but didn’t sell as it was overpriced.
“Both parties were very happy with the outcome.”
Mr Guo said the Gold Coast market is very stable, and any good, well priced property in a great area will sell.
Across the smaller auction markets, the highest preliminary clearance rate was recorded in Canberra where 63.3 per cent of auctions were successful, followed closely by Adelaide where 61.7 per cent of homes sold.
Related reading:
Brisbane property market coming alive
Is the heat going out of the Hobart housing market?
"Aspirational suburbs lead the way" in Perth market recovery
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