Unit market outperformed houses in weekend auction
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Sep 10, 2018
Unit market outperformed houses in weekend auction
This week saw auction volumes increase across the combined capital cities, with 1,907 homes taken to market returning a preliminary clearance rate of 59.1 per cent.
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Image supplied by Belle Property410/227 Victoria Street, Darlinghurst sold prior to auction for $1.475 million by Mark Foy, Ted Pye and Leon Parker of Belle Property as featured on Luxury List -
Image supplied by RT Edgar2/37 Glencairn Avenue, Camberwell for sale by Annabelle Feng and Nikki McCarthy of RT Edgar, as featured on Luxury List
While the preliminary clearance rate shows a week-on-week improvement, it’s likely that as final results are collected the weighted average will fall to remain within the low-mid 50 per cent range where it has been tracking for some time now.
Last week, a slightly lower 1,748 auctions were held and a final clearance rate of 55 per cent was recorded.
Compared to results over the same week last year, the auction market was performing quite differently, with a higher 66.9 per cent success rate, across a higher volume of auctions (2,258 auctions).
Source: CoreLogic
Results by property type show the unit market outperformed houses this week, with preliminary results showing 63.9 per cent of units sold, while houses came in with a lower 57.1 per cent success rate.
However, as usual houses accounted for a much larger proportion of overall auctions.
Victoria
In Melbourne, a preliminary auction clearance rate of 62.4 per cent was recorded across 894 auctions this week, up from 57 per cent across a lower 805 auctions last week.
One year ago, the clearance rate was a stronger 71.8 per cent across a significantly higher volume of auctions (1,111).
2/37 Glencairn Avenue, Camberwell passed in at $1.895 million by Annabelle Feng and Nikki McCarthy of RT Edgar, as featured on Luxury List
REIV CEO Gil King said “Last week delivered the strongest clearance rate in more than three months”.
“Glen Waverley led the market with nine auction sales, followed by Richmond with eight sales.
The top auction sale last week was 18 Selborne Rd in Toorak, which sold for $6.01 million.”
2/37 Glencairn Avenue, Camberwell passed in at $1.895 million with two genuine bidders.
While the property didn’t sell, Annabelle Feng of RT Edgar said the auction went very well.
“We had five interested parties and one made an offer before auction, but the owner didn’t take it.
“We got 25 bids on the day starting at a $1.7 million open bid.”
806/668 Bourke Street, Melbourne sold at auction for $619,000 by Jen Lin Lau of MICM Real Estate, as seen on The Home Page
The back unit of the complex sold for $2.3 million two years ago.
Ms Feng said the market in Camberwell has slowed down as buyers are short of confidence.
“The owner has dropped expectations for this unit as the market is not good enough.
“It’s a good time for buyers. This is an outstanding, high end property compared to the average market in Camberwell.
“The home is close to public transport including the tram and train, and close to parks and schools.”
Related reading: Sydney's most tightly-held suburbs
New South Wales
This week, there were 654 auctions held in Sydney, returning a preliminary auction clearance rate of 57.8 per cent.
Last week, there were 664 auctions held and the final auction clearance rate was 53.8 per cent, while one year ago, 826 Sydney homes went to auction and the clearance rate came in at 65.8 per cent.
34A Kiparra Street, Pymble passed in at $1.7 million by Alex Mintorn and Luci Hollands of McGrath, as seen on Luxury List
REINSW President Leanne Pilkington said “agents in general are still reporting expectations of increasing auction numbers as the Spring weather warms up, particularly as home owners that are planning to upsize realise that the falling market actually plays in their favour”.
34A Kiparra Street, Pymble also passed in for $1.7 million with no registered bidders.
Alex Mintorn of McGrath said “there have been two offers in campaign, but one of the buyers couldn't be at the auction so we are currently negotiating”.
410/227 Victoria Street, Darlinghurst sold prior to auction for $1.475 million by Mark Foy, Ted Pye and Leon Parker of Belle Property as featured on Luxury List
Mr Mintorn said the market in Pymble is price sensitive.
“Buyers are inspecting properties but it’s difficult at the moment to motivate an offer out of people.
Mr Mintorn has set an asking price of $1.75 million for the home.
Related reading: Unforgettable neighbouring Paddington properties
Queensland
This week, there were 159 auctions held in Brisbane, returning a preliminary auction clearance rate of 49.4 per cent.
Last week, there were 112 auctions held and the final auction clearance rate was 45.9 per cent, while one year ago, 139 Brisbane homes went to auction and the clearance rate came in at 38.8 per cent.
25 Cabana Boulevard, Benowa Waters passed in at $951,000 by Lucy Cole of Lucy Cole Prestige Properties Broadbeach, as seen on Luxury List
Lucy Cole of Lucy Cole Prestige Properties Broadbeach also had a property go to auction but pass in.
The home, located at 25 Cabana Boulevard, Benowa Waters passed in for $951,000 with three bidders.
“We are negotiating with a couple of people at the moment as the interest is a lot higher than that.
“Benowa Waters is a sought after suburb as it is a school catchment area, and close to shops and the botanical gardens.
“The home is a great investment for someone who is prepared to touch it up and put on a lick of paint,” Ms Cole continued.
“It has a lot of potential. The room sizes are exceptional with soaring ceilings. It just needs a bit of TLC.”
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