New Farm home smashes Brisbane auction records
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Mar 11, 2019
New Farm home smashes Brisbane auction records
A prized riverfront holding in New Farm became the most expensive house ever sold under the hammer in Brisbane on Saturday.
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Ray White New FarmPictured: 39 Griffith Street, New Farm. Sold at auction by Nicholas Given.
More than 100 people crammed onto the pool deck at 39 Griffith Street, New Farm to see it sell under the hammer for $7.75 million - making it the most expensive house to ever be sold at auction in Brisbane.
Ray White New Farm principal Matt Lancashire said the auction attracted eight registered bidders.
Bidding opened at $4 million and jumped in $500,000 increments to pause at $7 million, where negotiations continued on the sidelines.
Mr Lancashire says the sale is a good sign for the prestige market.
“We had 80 groups through over the four-week campaign and had three written offers prior. This is a great sale for Brisbane and the prestige market and a good sign of things to come.”
The property sold for $7.750M to a local family of property investors and developers.
Ray White New Farm agent Nicholas Given said this house was very special.
“It’s not every day a direct riverfront New Farm home hits the market. It was a prized and celebrated parcel of Queensland real estate and attracted interest on a national and International level,” Mr Given said.
Brisbane returned a preliminary clearance rate of 33 per cent across 215 auctions over the weekend.
Apollo Auctions director Justin Nickerson said the South East corner continues to defy the critics.
"Whilst the number of registered bidders continues to be low, the parties that are registering are generally participating strongly with intent to purchase.
"Some outstanding results were achieved this week in excess of the starting reserve prices which had been few and far between in 2019 up to this point.
"The sweltering weather didn’t deter attendees from turning out, with the average attendance again above the 20 mark," Mr Nickerson said.
It was a quieter week across the rest of the country over the weekend, with 1,196 auctions held across the combined capital cities - no doubt due to the public holiday today in most states.
Source: CoreLogic
The preliminary auction clearance rate across the combined capital cities rose to 52.2 per cent this week, up from the final 50.4 per cent last week.
Over the same week last year, the clearance rate was recorded at 63.3 per cent.
Sydney
Many Sydney homes that were scheduled to go under the hammer over the weekend sold prior to auction, as market observers warned of a reduced buyer pool.
Of the 702 auctions in Sydney, 58.2 per cent were successful.
Last week, 54 per cent of the properties that went to auction sold successfully under the hammer, compared to 50.2 per cent the week prior and 49 per cent over the first week of February.
Real Estate Institute of New South Wales (REINSW) President Leanne Pilkington says auction volumes are decreasing.
"North Sydney and the Hornsby region continued to outperform other areas with both the highest number of auctions," she said.
"Conversely the south-west region saw the lowest clearance rate with only 20 per cent of the 22 properties listed selling at auction."
Data from auction house Cooley Auctions reveals a 40 per cent annual drop in auctions over February. The average sales price has also dropped from $1.3 million to $1.07 million.
Auctioneer Damien Cooley says would-be vendors are spooked by falling clearance rates, but the recent drop in auction volumes will give sellers of prestige homes a boost.
CoreLogic auction analyst Kevin Brogan believes falling auction volumes will eventually drive a lift in Sydney's clearance rate.
Melbourne
Auction volumes were notably diminished in Melbourne over the Labour Day long weekend, with just 215 homes going to auction compared with 1,039 last week.
Melbourne returned a 53.5 per cent preliminary auction clearance rate.
AMP Capital chief economist Shane Oliver says the weekend offerings indicate auction volumes remain week.
He says a number of factors, including “tight credit, record unit supply, sharp fall in foreign demand, negative gearing and CGT uncertainty are continuing to impact”.
Across the smaller auction markets, the highest clearance rate was in Adelaide where 55.3 per cent of auctions cleared over the week.
Related reading:
Sydney auction market bucking the trend
Paddington: Why it's topping the list for Brisbane house sales this year
Buyers out in force, as auction clearance rate rises above 50 per cent
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