Auction results up after last weeks grand final slowdown
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Oct 8, 2018
Auction results up after last weeks grand final slowdown
Auction activity across the combined capital cities increased this week after last week’s grand final and public holiday slowdown, with 1,809 homes taken to auction, almost doubling from the 895 last week.
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Image supplied by Belle Property79 College Street, Balmain sold prior to auction for $2.8 million by Monique Dower and Madeleine Russell of Belle Property, as featured on Luxury List
The higher volumes returned a preliminary auction clearance rate of 53.7 per cent, increasing on last week when the subdued activity returned a final auction clearance rate of 45.8 per cent; the lowest clearance rate seen since June 2012 (42.0 per cent).
Source: CoreLogic
Compared to one year ago, clearance rates and volumes continue to track lower with final results from the same week last year recording a 64.4 per cent clearance rate across 2,318 auctions.
Queensland
Brisbane returned a preliminary auction clearance of 41.3 per cent this week, improving on last week’s final auction clearance rate of 36.1 per cent.
There were 110 homes taken to auction this week, up from 91 last week.
Wayne Bisgrove of Ray White sold 1502/1 Douglas Street, Coolangatta prior to auction for $1.2 million, to interstate buyers who already own one apartment in the building.
Mr Bisgrove told WILLIAMS MEDIA there is a split market in Coolangatta.
“The beachfront market is still good due to a limited supply of apartments and interstate people moving up for retirement," said Mr Bisgrove.
1502/1 Douglas Street, Coolangatta sold prior to auction for $1.2 million by Wayne Bisgrove of Ray White, as seen on Luxury List
“However when you step off beachfront, like most markets it is starting to come off a little bit.
Related reading: Fastest rate of capital gain in Gold Coast hinterland
“We had three out of three beachfront properties sell in the auction campaign last week, but we had 18 properties overall and only five sold.”
New South Wales
Sydney returned a preliminary auction clearance of 53.5 per cent this week, improving on last week’s final auction clearance rate of 43.8 per cent, which was the lowest result the city has seen since December 08.
There were 606 Sydney homes taken to auction this week, virtually unchanged from the week prior (608).
Leanne Pilkington, president of the Real Estate Institute of New South Wales said “Some consumers are understandably questioning the suitability of auctions in the changing market, however it is important to remember that these clearance rates focus only on property sold prior to or on auction day, with many more selling in the two week post auction period”.
Gavin Croft, auctioneer at Bresic Whitney told WILLIAMS MEDIA the company had 22 auctions this weekend with a 50 per cent clearance rate.
“It was a real mixed bag. We had properties that attracted six to eight registrations, and a few had some real depth and energy around them," said Mr Croft.
“If the price point and quality of the home was right, it really brought the buyers out and they competed hard.
Related reading: $100 million sale of Fairwater, Australia’s most expensive home
“On the flip side if you miss the market the buyers simply aren’t responding.”
79 College Street, Balmain sold prior to auction for $2.8 million by Monique Dower and Madeleine Russell of Belle Property, as seen on Luxury List
Mr Croft said some homes had zero or only one registration, which he said is reasonably normal.
“Across the board we had one really strong property selling for nine per cent above reserve, and the others were all one or two per cent either side of reserve.”
Victoria
Activity across Melbourne increased this week after last week saw volumes across the city plummet amidst the long weekend festivities, with 904 homes taken to auction this week, increasing significantly on last week when only 70 Melbourne homes were taken to auction.
The higher volumes this week saw the preliminary clearance rate drop to 54.4 per cent, from the 57.7 per cent final clearance rate last week across the lower volumes.
Gil King, CEO of the Real Estate Institute of Victoria said “Reservoir led the market again with 12 auction sales, followed by Preston with 10 sales”.
“Craigieburn had fewer sales than usual but it cleared all seven listings over the weekend.
“Several suburbs in inner Melbourne such as Hawthorn and St Kilda East cleared their auction listings with five and four respectively.”
Leonard Teplin of Marshall White Projects told WILLIAMS MEDIA he has noticed a growing market trend, which is the lack of two-bedroom, two-bathroom off-the-plan apartments currently on market.
So much so, he has seen clients waiting up to 12 months to find a suitable property.
"We typically have hundreds approach us each month, ranging from professional couples to young families with dual incomes, looking to buy a new home and they are finding a significant lack of supply.”
South Australia, Australian Capital Territory, Western Australia
Across the smaller auction markets, preliminary results show that Adelaide was the best performing in terms of clearance rate with a 66.1 per cent success rate across 62 auction results, followed closely by Canberra, where 63.9 per cent of the 61 reported auctions were successful.
Perth had a clearance rate of 9.1 per cent with 27 auctions.
Roy Halabi, director of Guardian Property Specialists told WILLIAMS MEDIA "Whilst there is no doubt the Sydney will recover as it always has, buyers are now encouraged to follow trends around the country in the name of affordability and growth".
"Our research shows that property markets in Perth and Canberra will be trending upwards, while the Melbourne market could be volatile based on the number of apartments currently under construction, with Queensland always steady and slow but safe."
Related reading:
Auction activity down due to long weekend celebrations
Australia ranked third in top property sales: Ken Jacobs, Christie’s
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