Finance Property Sign of the times? Third week of struggling auctions

Sign of the times? Third week of struggling auctions

Melbourne's top sale went for $300,000 below its original price guidance. Photo: Jellis Craig
Twitter Facebook Reddit Pinterest Email

More than half of the homes being auctioned over recent weekends are failing to sell under the hammer as home loans have become tougher to secure.

It seems set to happen for a third consecutive weekend, CoreLogic forecast after the initial weekend results.

There were 1850 homes taken to auction across the combined capital cities, returning a preliminary auction clearance rate of 50.7 per cent.

“It’s likely that the final result will see its usual downward revision as more results are collected and come in below 50 per cent for the third consecutive week,” CoreLogic auction analyst Kevin Brogan said.

Last week, the final auction clearance rate came in at 49.5 per cent from 1817 auctions.

Last year, both clearance rates and volumes were significantly higher with 67 per cent of the 2525 auctions finding buyers under the hammer.

Units were much more successful at weekend auction with 58 per cent selling, while only 48 per cent of houses sold. The same week last year saw virtually the same success rate.

AMP Capital’s chief economist Shane Oliver suggested the spring 2018 auction trend was consistent and was “further falls in home prices”.

There were 914 auctions held in Melbourne with a preliminary clearance rate of 52.1 per cent.

Deepdene had Melbourne’s priciest result with a $2.7 million sale.

The home at 4 Abercrombie Street house had been on the market several months ago initially with a $3 million price guide, which was then reduced for the auction to $2.4 million to $2.6 million hopes.

The backyard of Melbourne’s top weekend sale at $2.7 million. Photo: Jellis Craig
The Federation-style family home in the suburb of Deepdene struggled to sell for months. Photo: Jellis Craig
It has four bedrooms and three bathrooms, so plenty of space. Photo: Jellis Craig
Access to Kew’s prestigious schools was a key selling point. Photo: Jellis Craig

Another sale was a Safety Beach waterfront vacant lot with its own pontoon and 15-metre berth.

The block at 32 Clipper Quay, Safety Beach in the Martha Cove estate sold for $1,650,000 having been listed with $1.795 million to $1,974,500 expectations.

The Prahran investment property of former WMTA light heavyweight World Thai boxing champion Nick ‘Special K’ Kara remains for sale.

Jellis Craig father-son agents Chris and Michael Hingston had a $1.25 million to $1.35 million price guide for its weekend auction.

The contemporary three-bedroom Edwardian property at 16 Fern Avenue last sold at $322,500 in 1999.

Fight champ Nick ‘Special K’ Kara is struggling to land a blow with this Prahran property. Photo: Jellis Craig
It’s open living to the max. Photo: Jellis Craig
Modern finishes, but the Edwardian windows give away the home’s history. Photo: Jellis Craig
As do the vaulted ceilings and fireplaces. Photo: Jellis Craig
Three bedrooms, close to schools, and yet still struggling to sell. Photo: Jellis Craig

But as the tide turns, the season’s first beach bathing box auction on Melbourne’s Port Philip Bay saw a $230,000 sale.

The sale was $15,000 above the reserve price for No. 47 beach box at Safety Beach, on the Mornington Peninsula.

The auction kicked off with a $180,000 bid, with three bidders competing when auctioned through Ray White Rosebud agent Shane Fox.

Sydney was host to 645 auctions this week with preliminary results showing a clearance rate of 52 per cent.

Sydney’s highest auction price was $4.35 million for a newly built house at 2 Mirrabooka Avenue, Strathfield.

The five-bedroom, six-bathroom home, on 700 square metres, came with a home theatre and a wine cellar.

Across the smaller auction markets, the highest preliminary clearance rate was recorded in Canberra, where 63.6 per cent of the 55 reported auctions were successful. It was followed by Adelaide, where 53.3 per cent of homes sold.

Brisbane, where there was a 35 per cent clearance rate, secured the nation’s cheapest home sale.

It was a $281,000 sale of a three-bedroom house at 15 Boyanda Drive, Kallangur.

The two-level home is 25 kilometres to Brisbane city, and a short drive to the North Lakes City.

Jonathan Chancellor is editor at large at Property Observer

View Comments