Residential property auction market wrap
IT might be winter but the residential property auction market is showing signs of warming up with the clearance rate strengthening last weekend.
The clearance rate in Sydney improved to 71.5%, although Melbourne was the strongest performer with the clearance rate jumping to 79% last weekend.
Last weekend in Sydney, there were 499 listings with 350 auctions and 279 sales reported resulting in a clearance rate of 71.5%, according to Domain’s Australian Property Monitors.
The total value of auction sales was $294.3 million.
The clearance rate is higher than 66.2% reported in the previous weekend from 531 listings, 451 auctions and 331 sales totalling $315.3 million.
It is on par with the same weekend last year, where a rate of 71.9% was recorded from 366 listings, 321 auctions and 246 sales totalling $296.6 million.
Domain chief economist Andrew Wilson said the clearance rates is the highest recorded for six weeks.
“Recent predictions of a winter freeze in the Sydney market remain well off the mark with speculation rising that significant changes to the stamp duty payable to first home buyers, effective from July 1, may be supporting current activity.
“Sydney recorded a median auction price of $1,226,500 on Saturday which was higher than the $1,160,000 reported the previous weekend and 3.5% higher than the $1,185,500 recorded over the same weekend last year,” he added.
Wilson said Sydney’s regions reported consistent results with clearance rates for most areas above 70%.
“Sydney’s west again recorded one of its best results this year indicating perhaps rising first home buyer activity in the budget market. Inner suburban areas continue to produce strong winter results for sellers although the inner west was unusually lower at the weekend,” Wilson said.
Melbourne’s auction market continued to improve with the clearance rate rising to 79% last weekend, according to the REIV. There were 522 auctions reported and 412 homes sold under the hammer. It is up from 76% in the previous weekend from 705 auctions as well as the same weekend last year’s 78% from 588 auctions.
The total value of auction sales was $331.27 million, a median house, apartment and land sale price of $800,000, $622,000 and $798,750 was recorded.
At the same time, there were 284 private sales totalling $183.61 million.
REIV acting president Richard Simpson said Melbourne’s property market continues to perform strongly, boosted by a buoyant auction market.
July is shaping up to be the strongest in history with more than 1,900 auctions scheduled – a record for the month.
“The cold weather hasn’t dampened Melbourne’s property market with the citywide median house price increasing for the fifth consecutive quarter,” he added.
New REIV data shows the metropolitan Melbourne median house price rose 2.9% in the three months to June 30, to $822,000.
Croydon in the outer east experienced the city’s largest quarterly increase, up more than 20% to a median of $810,000.
“It has been an exceptional year for the property sector with numerous auction records falling in the first half of 2017.
“More than 10,300 homes have gone under the hammer in the June quarter – a record for this time of year,”
Simpson added that the city’s apartment sector had also performed strongly in the June quarter with the metropolitan Melbourne median increasing 4.3% to $606,500.
House prices in regional Victoria rose strongly for the second consecutive quarter, up 2% in June to a record high $385,000.
Canberra posted a clearance rate of 63% last weekend. There were 36 listings and 31 homes were auctioned with 20 selling under the hammer, according to APM.
The total value of sales was $16.25 million and a median auction sale price of $810,000 was recorded.
There were 94 listings and 54 auctions were reported, however only 23 homes sold. As a result, a low clearance rate of 41% was recorded.
The total value of auction sales was $16.09 million and the median sale price of $702,500.
Across Queensland, 237 homes were listed for auction and 156 results were reported, of which 55 homes sold under the hammer.
Adelaide reported the highest clearance rate in the country of 84%. The city of churches had 41 listings and 19 homes were auctioned with 16 selling.
The total value of auction sales was $6.96 million and a median sale price of $525,000 was recorded.
Across the state there were 76 listings and 45 results were reported, with 24 properties selling under the hammer
Perth delivered a weak performance last weekend. Despite having 58 listings, there were 25 results reported and nine properties sold at auction.
Buyers were not in a buying mood in Darwin. There were eight listings, five auctions were reported, however no properties were sold under the hammer.
Hobart put on a slightly better show than Darwin, with six listings and five results reported, of which three properties sold at auction.
Auction highlights this week Saturday, 15 July 2017
15 Fisher St, Balgowlah Heights NSW 2093, 5 br House, Clarke & Humel Property Management Pty Ltd
92 Winmalee Rd, Balwyn VIC 3103, 3 br House, Jellis Craig & Company Pty Ltd
1 The Crescent, Marryatville SA 5068, 3 br House, T&T SA
62 Harris St, Hawthorne QLD 4171, 6 br House, Place Estate Agents Aspley
3B Arkana St, Yarralumla ACT 2600, 5 br House, Peter Blackshaw Real Estate Manuka
17 Abelia Pl, Umina Beach NSW 2257, 3 br House, R&H Umina Beach & Woy Woy
3/19 Cricklewood Av, Frankston VIC 3199, 2 br Unit, Aquire
3 Haydn St, Ingle Farm SA 5098, 3 br House, LJH Walkerville | Modbury
304 Haigslea Malabar Rd, Haigslea QLD 4306, 3 br House, RealWay Property Consultants - Ipswich
41 McKinley Cct, Calwell ACT 2905, 3 br House, Luton Properties - Tuggeranong
Australian Property Journal