Clearance rates soften in Sydney, Melbourne

Contact

Mar 19, 2018

Clearance rates soften in Sydney, Melbourne

Clearance rates softened last week, with volumes the highest so far this year.

Image: Lock Bulmer.

This five-bedroom house at 17 Robbies Road, Yarrambat, in Melbourne's north, is for sale through Paul Cutler of Lock Bulmer.

Clearance rates were lower on the weekend, but suburbs in Melbourne's north defied the trend, with clearance rates remaining above 80 per cent.

The overall clearance rate across Australia's capital cities was 67.5 per cent, with 3,097 homes going under the hammer, the highest volumes recorded so far this year.

Last week's final clearance rate was a lacklustre 63.3 per cent, though the results were affected by public holidays in a number of cities.

Source: CoreLogic.

Melbourne volumes up after long weekend

REIV CEO, Gil King, told WILLIAMS MEDIA that 1,273 auctions were held in Melbourne over the weekend, and a preliminary clearance rate of 68 per cent was recorded.

"While volumes were almost identical to the same period last year, the clearance rate remains well below 2017 figures when 79 per cent sold under the hammer," said King.

Auction market strong in Melbourne's north, where lifestyle and affordability overlap

“Suburbs in the city’s north experienced the strongest results under the hammer this weekend with Reservoir and Craigieburn both recording double-digit auction sales," said King.

Reservoir and Richmond had the highest number of auction sales this weekend with 13 properties sold in each of the suburbs, and Craigieburn (12 auctions) and Yarraville (10 auctions) were the state’s top performing auction suburbs, with 100 per cent clearance rates.

Melbourne's outer northern suburbs experienced the city's strongest clearance rate, recording a clearance rate of 85 per cent. Craigieburn led the way and South Morang achieved a clearance rate of 92 per cent from 12 auctions.

On a municipality level, City of Moreland, also in Melbourne's north, sold the most properties under the hammer with 59 auction sales.

Paul Cutler, an agent with Lock Bulmer, told WILLIAMS MEDIA the auction market is strong in Melbourne's north, but there is a different story for each areas.

"The north east is quite strong," he said, "but some areas are stronger than others."

Cutler said that the area remains affordable compared to other areas of Melbourne, and offers lifestyle advantages with lots of open parkland, good roads, high levels of infrastructure spending, and a good range of established and new housing from apartments through to townhouses and single dwellings.

Positive economic factors buoying buyer confidence

Cutler said that overall economic factors are buoying buyers' confidence.

"Economic factors look quite reasonable, and that is giving buyers confidence," he said.

Cutler said that volumes are higher in the area."There's no shortage of listing for buyers to choose from," he said.

And properties are selling quickly, he said, with most listings selling within two to four weeks.

Of this week, King said, “High auction volumes continue next weekend with more than 1,700 auctions already scheduled, challenging the record for the most auctions held in a single weekend.”

Sydney's clearance rate softens, though inner city suburbs remain above 70 per cent

Leanne Piklington, president of the REINSW, told WILLIAMS MEDIA, that Sydney saw, "the second busiest auction weekend of the year."

She said 1055 auctions took place across Sydney, with a preliminary clearance rate of 67.8 per cent recorded.

"With approximately 5 per cent more auctions than same time last year, we are seeing a relatively stable market, with property in the inner-ring suburbs enjoying clearance rates at 70+ per cent," said Pilkington.