Finance Property Clearance rates rise slightly as ‘fear-of-not-getting-out’ mentality creeps into top end

Clearance rates rise slightly as ‘fear-of-not-getting-out’ mentality creeps into top end

This Tamarama home sold for $8.4 million on the weekend. Photo: Phillips Pantzer Donnelley
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A glamorous Tamarama modern home with ocean views secured the nation’s highest weekend sale, as auction results limped towards the extended summer break.

The top sale was when medicinal cannabis industry chief Matt Cantelo sold his ultra-cool home for $8.4 million.

It was $200,000 under his reserve, but higher than the buyer’s pre-auction offer.

The four-bedroom, Neeson Murcutt-designed home at 12 Carlisle Street came with ocean views.

The kitchen and dining domain has a superb outlook. Photo: Phillips Pantzer Donnelley

It was built for Michelle O’Brien, director of golf and leisure wear label Birdee Sport.

Mr Cantelo, the chief of Australian Natural Therapeutics Group, bought it for $5,350,000 in 2012, then adding a cubby house and water slide in the garden below.

Perfect for entertaining in the warmer months, the deck will impress. Photo: Phillips Pantzer Donnelley

The Sunday Telegraph reported Mr Cantelo was already committed to a $19,525,000 Vaucluse acquisition.

At 48 per cent Sydney was the strongest capital city auction market, with all other capital cities having clearance rates below, dipping as low as 30 per cent in Brisbane, according to CoreLogic.

AMP Capital economist Shane Oliver described the weekend results as “very weak”.

He said it was result of a “perfect storm” of tight credit, supply surge, fall in foreign demand, the conversion of interest-only loans to principal and interest, along with the fear of tax changes.

Mr Oliver also said the market was seeing the impact of the transition from the “fear-of-missing” out mentality to a “fear-of-not-getting-out” anxiety.

Nationally there were 2614 homes taken to auction over the week, down just slightly from the previous week when 2749 auctions were held.

It was considerably lower than the same week last year when 3371 auctions were held across the combined capital cities.

The preliminary results show a clearance rate of 45.3 per cent, up on last week’s 41 per cent final clearance rate, although as final results are collected CoreLogic expects to see the clearance rate revise down below 45 per cent for the sixth consecutive week.

Melbourne was host to 1283 auctions with preliminary results showing a clearance rate of 46.1 per cent. This increased from last week when the final clearance rate was a lower 42.7 per cent across 1378 auctions.

Over the same week last year, the auction clearance rate was significantly higher with 65.4 per cent of the 1833 auctions returning a successful result.

A development site was Melbourne’s top sale when a 1970s house at 13-19 Old Aqueduct Road, Diamond Creek, fetched $4.225 million.

The 12,042-square-metre townhouse development site easily surpassed its $2.3 million to $2.5 million quote.

The pool at 8 Sarah Crescent, Templestowe provides a cool retreat. Photo: Ray White

The top house sale was a four-bedroom house on 4682 square metres at 8 Sarah Crescent, Templestowe for $2.9 million, up on the $2.5 million to $2.75 million price guide quote.

The grand entry accesses the various living areas. Photo: Ray White
Move into the comfort zone in the lounge. Photo: Ray White

It came with cascading Murano glass chandeliers.

The property last sold at $77,000 in 1978.

Collingwood AFL midfielder Levi Greenwood failed to sell his South Melbourne single-fronted terrace, which passed in at auction at $1.125 million.

There was only one bidder on the 97 Bank Street offering which has been renovated in a black and white theme since purchased in 2016 at $920,000.

It now comes with a $1.275 million asking price.

The updated terrace at 97 Bank Street, South Melbourne. Photo: Marshall White
The kitchen includes Smeg appliances and a walk-in pantry. Photo: Marshall White

The Real Estate Institute of Victoria have advised some 1060 auctions next week, then some 150 auction on the weekend prior to Christmas.

There were 853 auctions held in Sydney with preliminary results showing a 48 per cent clearance rate, up from 41.6 per cent across a higher volume of auctions last week (937), although as usual this will revise lower as final results are collected.

Over the same week last year 1007 homes were taken to auction across the city returning a clearance rate of 52 per cent.

Domain Group updated last weekend’s Sydney clearance rate to just 35.8 per cent following the counting of late-reported results.

Across the smaller auction markets, Canberra saw auction volumes fall week on week.

The quaint exterior gives a hint of the seclusion. Photo: Peter Blackshaw
With a 43 per cent success rate, Canberra’s top sale was 64 Banks St, Yarralumla, a four-bedroom house in Harris Hobbs-designed gardens which sold for $1,735,000.
The courtyard provides privacy in the natural surrounds. Photo: Peter Blackshaw
The light-filled bathroom with walk-in shower exudes comfort. Photo: Peter Blackshaw

Jonathan Chancellor is editor at large at Property Observer

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