Buyers out in force, as auction clearance rate rises above 50 per cent
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Feb 25, 2019
Buyers out in force, as auction clearance rate rises above 50 per cent
Buyers turned out in solid numbers, as the number of auctions scheduled across the capital cities surged above 2,000 for the first time this year.
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Place BulimbaPictured: 26 Henderson Street Camp Hill. Sold at auction through agent Joanna Gianniotis of Place Bulimba as seen on Luxury List.
Preliminary results showed just over half of properties (54.1 per cent) sold under the hammer across the combined capital cities, with stronger results compared to last week.
But market experts say the results are just "masking the weak market" and are likely to be revised down.
"The results we are seeing in Sydney and Melbourne are perhaps better than what we might have expected, but we are still in a relatively low auction environment, so it will be very interesting to see if this level of clearance is sustainable," CoreLogic's Kevin Brogan said.
"The seasonal pattern over previous years has seen a similar bounce back in the auction clearance rate in February through to mid-to-late March before trending lower into autumn and winter.
"Considering advertised stock levels remain high and most other indicators are soft, it’s possible a similar weakening trend in auction markets will become evident next month."
Source: CoreLogic
The auction numbers still look quite weak to me ... unreported rates are up and [clearance rate] revisions from the previous week have been revised heavily down," SQM's Louis Christopher said.
"In weaker markets you see unreported rates rise and preliminary figures are masking the weakness in the market," Mr Christopher added.
Sydney
Sydney was host to 795 auctions this week with preliminary results showing a 58.6 per cent clearance rate, up from 54.6 per cent across 523 auctions last week.
Over the same week last year 1,259 homes were taken to auction across the city returning a clearance rate of 65.1 per cent.
Brisbane
Brisbane's clearance rate reached 42 per cent from 122 properties taken to auction.
But there's still strong activity out there. A street record was shattered in Camp Hill after a Brisbane family paid more than $2 million to secure 26 Henderson Street, Camp Hill.
A bidding war ensued between two registered bidders for the title of the five-bedroom, three-bathroom home.
Bidding kicked off at $1.8 million, initially rising in $50,000 leaps.
The home sold for $2,106,000.
The home generated lots of interest, with more than 100 people of varying demographics visiting at open-for-inspections.
Apollo Auctions Director Justin Nickerson told WILLIAMS MEDIA the South East Queensland market bounced back solidly from the disappointing results from last week.
"This was fuelled largely by a number of sales prior to auction, perhaps a reflection for vendors that a bird in the hand is presently very valuable.
"Also noticeable was a number of one bidder auction sales – with sellers preferring the cash option rather than the uncertainty of post-auction," he said.
The threat of Cyclone Oma didn't keep people away.
"Cyclone Oma played no part in keeping the attendance down, with a yearly high average of 27 people in attendance at each auction."
Melbourne
In Melbourne 53.1 per cent of the 1,144 properties for sale sold under the hammer, according to CoreLogic's preliminary figures.
Cheltenham and Hawthorn were the best performing suburbs with 10 sales under the hammer, resulting from 11 auction listings in each.
“Cheltenham is leading the pack for auction sales volume so far this year with 23, ahead of Craigieburn with 22 and Reservoir with 17," REIV CEO Gil King told WILLIAMS MEDIA.
RT Edgar Toorak's Justine Harris says their agency is seeing healthy numbers through open for inspections.
"This year has started off seeing increased numbers through our open for inspections compared to late last year, which has resulted in some properties being secured prior to their auction or expressions of Interest closing dates," she told WILLIAMS MEDIA.
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