'Seasonal bounce': Sydney, Melbourne auction clearance rates up
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Feb 18, 2019
'Seasonal bounce': Sydney, Melbourne auction clearance rates up
Sydney and Melbourne's auction clearance rates picked up on the weekend, fueled by hopes of reduced interest rates and relief that the banks are unlikely to further tighten lending after the results of the banking royal commission.
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Belle Property Lane CovePictured: 112 Arabelle Street, Longueville. Sold at auction by Simon Harrison and Kim Walters of Belle Property Lane Cove
Preliminary results show a clearance rate of 55.2 per cent this week.
Last week's final clearance rate came in at 51.1 per cent across the combined capital cities, marking the first time the clearance rate has held above 50 per cent since September last year.
Source: CoreLogic
But agents say the improvement seen this week could reflect a "seasonal bounce" that market observers identify early in the new year, and may not last.
Nationwide clearance rates typically improve at this time of year, given auction volumes are well below the levels seen in spring and autumn.
Sydney
Sydney's clearance rate lifted to 61 per cent based on the initial results of 521 auctions scheduled in the week to Saturday, CoreLogic's preliminary figures showed.
While the rate is likely to fall after the results of more auctions are factored in, this was the strongest preliminary rate since the third week of July last year when the figure was 61.3 per cent.
Belle Property Lane Cove agent Tim Holgate told WILLIAMS MEDIA buyer numbers are up and contracts are out on nearly all of their properties, with the lead up to Easter the best time to sell.
"There will be some uncertainty after Easter due to the federal election expected in May."
Melbourne
Melbourne was host to 657 auctions this week with preliminary results showing a clearance rate of 54.2 per cent, increasing from last week when the final clearance rate was recorded at 52.4 per cent across 350 auctions.
Over the same week last year, the auction clearance rate was significantly higher with 69.8 per cent of the 932 auctions returning a successful result.
"St Kilda was the star performer with a 100 per cent clearance rate from five auctions; four of the successful sales were apartments," Real Estate Institute of Victoria (REIV) CEO Gil King told WILLIAMS MEDIA.
"All three auction listings in Ascot Vale also sold under the hammer last weekend.”
Brisbane
Brisbane's auction clearance rate fell week on week, with a preliminary clearance rate of 32.8 per cent across just 88 auctions.
This is compared with 44.1 per cent across 121 auctions for the same week last year.
Apollo Auctions auctioneer Justin Nickerson says there's a lack of activity from buyers.
"The South-East Queensland market cooled considerably this weekend, with a few outstanding competitive auctions tempered by a lack of activity from buyers across the board," Mr Nickerson told WILLIAMS MEDIA.
"Noticeable was the presence of a significant amount of post auction offers, with buyers seemingly preferring to negotiate with terms but still being brought to a point of decision by the auction process.
Related reading: 5 ways to improve your chances of selling by auction in a soft market
"The regular volume of auctions has now begun to return, so a pattern of stabilization on the results should emerge in the coming weeks," Mr Nickerson said.
Ray White New Farm's Christine Rudolph says the Brisbane apartment market is performing strongly, with four resales of Mirvac properties dominating the agencies top 10 sales results.
"These results reflect buyer confidence in purchasing in primarily owner-occupied riverfront buildings, where position, quality and price stability have proven to be consistent over the long term," she told WILLIAMS MEDIA.
"Overall, the Brisbane market performed well last week, open home numbers remain buoyant and buyers have an appetite for quality property.
"Auction clearance rates reflect a healthy result showing that we are once more, outperforming our southern counterparts."
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