Houses outperform unit market, while unit market consistently better performer
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Aug 13, 2018
Houses outperform unit market, while unit market consistently better performer
This week 1,400 homes went to auction across the combined capital cities, returning a preliminary auction clearance rate of 59.1 per cent, while last week there were 1,324 auctions and the final clearance rate came in at 54 per cent, according to data from CoreLogic.
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RT Edgar27 Callantina Road, Hawthorne sold by Jeremy Fox and Sarah Case of RT Edgar, as featured on Luxury List
Over the same week last year, auction volumes were higher with 2,040 homes going under the hammer across the combined capital cities, and the clearance rate was a stronger 67.5 per cent.
Houses outperformed the unit market this week with 60 per cent of houses selling at auction, while 57.1 per cent of units sold across the combined capital cities. The unit market has consistently been the better performer this year.
Source: CoreLogic
Melbourne
Australia’s largest auction market had a preliminary auction clearance rate of 61.3 per cent with 718 auctions this week, up from 57 per cent across 629 auctions last week.
A year ago, the clearance rate was a stronger 69.8 per cent across 955 auctions.
Gil King, CEO of REIV said “The wet weather didn’t dampen the auction appetite over the weekend with the clearance rate the highest it’s been in weeks”.
“Several inner metropolitan suburbs recorded solid results on the weekend including Yarraville which cleared all six of its listings while Port Melbourne had an 89 per cent clearance rate from nine auctions.
“Six properties were sold under the hammer each in Melbourne’s CBD and Preston, contributing to an 86 per cent clearance rate in both postcodes.”
Jeremy Fox, director of RT Edgar spoke to WILLIAMS MEDIA about a property he sold in Hawthorn, 27 Callantina Road.
27 Callantina Road, Hawthorne sold by Jeremy Fox and Sarah Case of RT Edgar, as seen on Luxury List
“It was a tough auction as it took a while to get the first bid, and it lasted about 30 minutes.
“We had a genuine opening bid at $3.5 million and we had a second and third bidder come in and take it up to $3.6 million.
“It ended at $3.6 million and we sold it to the same person about 15 minutes later for $3.66 million.”
Mr Fox said the buyers were a young family with two kids from Melbourne, but were looking to upgrade. They are planning on renovating the house.
There were 120 groups that came though over the four week campaign.
Related reading: Get to know Jeremy Fox, Director of RT Edgar
“We are still selling those classic old Melbourne houses like the Victorian style and 1930s Edwardian on good allotments, whether renovated or unrenovated.
“People still love these styles and they are highly sought after.
“It is a theme that's coming through, and getting good interest.”
Mr Fox said he sold five out of five properties on the weekend, all with a standard four week campaign.
“Four of these were the older style houses, and an apartment.”
Sydney
There were 459 auctions held in Sydney this week returning a preliminary auction clearance rate of 59.1 per cent, compared to 51.9 per cent across 462 last week, and 67.6 per cent across 798 auctions one year ago.
Mario Valensise of Devine sold a home for $2.775 million at 69 Westminster Road, Gladesville.
“There were two bidders and the buyers were fairly local, they were buying to live in.
“They do also own some other property around the area.
69 Westminster Road, Gladesville sold by Mario Valensise and Luciano Galati of Devine, as seen on Luxury List
Mr Valensise said the owners had it on the market a few years ago but it didn’t sell.
“We had a stylist go in and give some advice on doing work to the property.
“They pulled down the wallpaper, repainted the inside and outside of the home, changed the colour of the splashback, and did landscaping out the back.
“They invested time and money to renovate the home and get it up to scratch.”
The contemporary home is about 10 years old.
Mr Valensise said he had 35 groups through the open house prior to the auction.
Related reading: Predicted suburbs to watch in the second half of 2018
“There seemed to be a lot of homeowners doing research in the area which was a bit unusual.
“It may have been just time of year with spring coming and people getting ready to go on the market.”
Pete Matthews, deputy president of REINSW said “Investors and first home buyers alike remain cautious in the unit market and look to cherry pick rather than turn up on auction day”.
“Agents are also reporting that there are many instances where the highest offers are coming in early in the campaign leaving owners with the dilemma of whether a bird in the hand is really worth two in the bush.
“Those vendors that are not in tune with the market potentially risk a lesser price down the track.”
Brisbane
There were 88 auctions held in Brisbane this week returning a preliminary auction clearance rate of 49.2 per cent, compared to 37.5 per cent across 115 auctions last week.
This time last year Brisbane had a 43.8 per cent preliminary auction clearance rate across 103 auctions.
Related reading: Highest and lowest performing suburbs North vs South of the Brisbane River
Brisbane had a 0.2 per cent weekly home value change, and 1.2 per cent twelve month change.
Related reading:
Auction volumes down but preliminary clearance rate up in first week of August
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