Finance Property Property has ‘flipped the script’ and turned into a sellers’ market

Property has ‘flipped the script’ and turned into a sellers’ market

weekend auction wrap July 20
The weekend's top result was this home in Sydney's Pymble that sold for $4.68 million. Photo: McConnell Bourn Lindfield
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Capital city auction markets recorded their highest preliminary clearance rate in over a year, reaching 70 per cent.

But price recovery remains erratic, even as Sydney and Melbourne forged a path towards being a sellers’ market.

After having quit Melbourne, Socceroo Aaron Mooy scored a sale at weekend auctions when his Yarraville penthouse fetched $901,000.

While the Herald Sun advised there was a shootout between three bidders, it sold for less than its initial purchase price.

The UK-based star midfielder bought it off the plan for $914,000 in boom-time 2015, when he was playing for Melbourne City in the A-League.

Having never got to live there after signing a £10 million ($17.76 million) deal with Huddersfield Town in 2017, Mooy listed the 608/125 Francis Street penthouse with an $800,000 to $880,000 price guide.

weekend auction wrap July 20
The penthouse had prime position in the building and panoramic views across Melbourne. Photo: Biggin & Scott

The three-bedroom apartment sits in the sought-after north-eastern position on the top floor of the tallest residential building in Yarraville.

Mooy retains a house in Scotland, in the west end of Glasgow.

A 2012-built French-inspired Hawthorn East trophy house was passed in at weekend auction at $2.7 million from the only bidder.

The auction began with a $2.65 million vendor bid.

The four-bedroom, Edwardian-style residence at 52 Harold Street was last sold in 2018 for $2.9 million by Appetite for Excellence’s 2010 Young Restaurateur of the Year Kim Cornice.

weekend auction wrap July 20
Agents Greg Hocking Persichetti had price hopes of $2.75 to $3 million for the home. Photo: Greg Hocking Real Estate

The four-bedroom home featured a glass-encased cellar with a wine and cheese display area.

Queensland had the nation’s cheapest sale when 21 Frome Street, Laidley, fetched $175,000 through Elders agent Darryl Muckert.

weekend auction wrap July 20
The house was on a large, 1015-square-metre block. Photo: Elders

Set in the Lockyer Valley of south-east Queensland, it had sold in 2008 at $209,000 when rented out at $210 a week.

The vacant three-bedroom home, which sits on a 1015-square-metre block, has had a fresh paint job on the inside and new floor coverings.

There is a reverse-cycle air-conditioner in the lounge room, meals area off the kitchen, and internal laundry and bathroom.

Sydney topped the nation’s weekend results with a $4.68 million sale at Pymble.

The 36 Bobbin Head Road offering was marketed as a “modern interpretation of Federation style that satisfies contemporary living while embracing classic grandeur”.

Set on 1896 square metres of manicured gardens with a pool and tennis court, the two-storey home has six bedrooms.

weekend auction wrap july 20
The home last sold for $1.4 million in 2001. Photo: McConnell Bourn Lindfield

The solid-brick house had a price guide of $4.5 million through McConnell Bourn Lindfield agents Carole McCrea and Matthew Bourn.

It last sold at $1.4 million in 2001.

There was also a $4.065 million sale when 25 Campbell Street, Abbotsford, went to auction through Cobden & Hayson.

Built in 2000, the five-bedroom contemporary home was sold for $1.95 million in 2012.

weekend auction wrap July 20
The house was set on a 746-square-metre block. Photo: Cobden & Hayson

“The auction market is back favouring sellers in a big way,” said estate agent Matt Hayson.

“What a wild eight weeks it has been for Sydney property, which has completely flipped the script,” he said.

There were 350 fewer auctions held nationally at the weekend, compared with 2018, with the drop in Melbourne offerings at 32 per cent and in Sydney with 25 per cent fewer listings.

There were 901 homes taken to auction across the combined capital cities this week, returning a preliminary clearance rate of 70.6 per cent.

CoreLogic advised the prior week saw 847 homes taken to auction with the final clearance rate at 65.4 per cent, the first time a final clearance rate held above 65 per cent since March 2018.

Over the same week last year, auction activity was higher with 1257 homes taken to auction, returning a clearance rate of 57 per cent.

Melbourne was host to 416 auctions on the weekend, returning a preliminary clearance rate of 70 per cent.

The same week last year saw a clearance rate of 59.9 per cent across 613 auctions.

Sydney recorded a preliminary clearance rate of 81.5 per cent across 303 auctions this week.

“It is likely that the final clearance rate will revise down to around the mid-70s once remaining results are collected,” a CoreLogic spokesperson said.

Over the previous week, 72.8 per cent of the 316 auctions were successful, the second week in a row where the final clearance rate held above 70 per cent.

One year ago, 407 auctions were held across Sydney, returning a final clearance rate of 55.2 per cent.

The smaller capitals have yet to get much momentum with Canberra at 60 per cent, Adelaide at 58 per cent, and Brisbane with a 45 per cent success rate.

SQM auction analyst Louis Christopher said the end of school holidays would “very likely start to see a rise in auction volumes from as early as next weekend”.

Jonathan Chancellor is editor at large with Property Observer

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