Finance Property Sellers in position of strength as clearance rates hold firm

Sellers in position of strength as clearance rates hold firm

41 Drake Street, Brighton
Melbourne’s auction market is running out of steam, but Sydney shows little sign of slowing down. Photo: Buxton Real Estate
Twitter Facebook Reddit Pinterest Email

Melbourne recorded its lowest non-holiday weekend auction result in nearly four months on Saturday although the market remains generally in favour of sellers, housing economist Dr Andrew Wilson said.

But Dr Wilson noted the typical surge in late spring auction listings had failed to slow the Sydney auction market.

CoreLogic auction analyst Kevin Brogan said clearance rates across the largest cities have mostly remained above 70 per cent since July, implying that vendors remain in a strong selling position, he said.

“Next week we are expecting auction numbers to lift by around 14 per cent, to be the biggest week of auctions held so far this year,” Mr Brogan said.

Despite the emerging difference in market sentiment, there was just $5000 difference between the cheapest offerings in Sydney and Melbourne.

There was a $305,000 sale at Essendon when 11/158 Napier Street was sold.

11/158 Napier Street, Essendon
Only $5000 separated this from Sydney’s cheapest auction: Photo: Nelson Alexander

The renovated, one-bedroom ground-floor unit sold through Nelson Alexander Essendon had a price guide of $285,000 to $310,000.

It had sold for $280,000 in 2015.

A 73-square-metre unit at Auburn was Sydney’s cheapest sale at $310,000.

The two bedroom at 2/66 Dartbrook Road, was on the market for the first time since selling in 1987 for $48,000, according to CoreLogic.

The garden apartment, that sold through Ascott Real Estate, sits in a block of just 12.

Dartbrook Road.
In 1987, this two-bedroom apartment sold for less than $50,000. Photo: Ascott Real Estate

Across the nation, there were 2599 homes taken to auction across the combined capital cities this week, returning a preliminary auction clearance rate of 72.9 per cent.

Last week, 2590 auctions were held when the final clearance rate came in at 70.1 per cent.

Over the same week last year, auction volumes were slightly higher with 2701 homes going under the hammer across the combined capital cities, returning a final auction clearance rate of just 41.9 per cent.

Melbourne’s top sale was a period home that fetched $3.85 million in Brighton.

The 41 Drake Street home sold through Buxton had four bedrooms plus study on a 778-square-metre block between the Golden Mile foreshore and village shops.

It came with open fireplaces and a leadlight entry.

41 Drake Street, Brighton
Melbourne’s Brighton is known for its high-end properties. Photo: Buxton Real Estate

It last sold for $2,725,000 in 2008 and in 2006 for $1.94 million.

Agents has offered a $3.5 million pre-auction price guidance.

In Melbourne, a preliminary auction clearance rate of 73.2 per cent was recorded across 1217 auctions on the weekend, while last week there were 1242 auctions returning a final clearance rate of 74.3 per cent, according to CoreLogic.

One year ago, the clearance rate was just 41.4 per cent across 1132 auctions.

There were 934 auctions held in Sydney this week, returning a preliminary clearance rate of 82.3 per cent.

By comparison, there were 947 auctions held over the previous week and the final auction clearance rate was 71.9 per cent.

One year ago, 1035 auctions were held and the clearance rate came in at 44.8 per cent.

Sydney’s top sale was at Mosman when Raine & Horne agents secured $4.7 million for a four-bedroom apartment.

2/47 Bradleys Head Road
This Bradleys Head Road home sports a gorgeous view. Photo: Raine & Horne

The whole-floor 2/47 Bradleys Head Road apartment had sold for $3.01 million in 2011.

Across the smaller auction markets, Brisbane had the highest volume of auctions with 184 homes going under the hammer, returning a preliminary clearance rate of 46.4 per cent.

The Brisbane results included a $4.1 million sale through Ray White at 100 Oriel Road, Clayfield where four registered bidders sought the four-bedroom, three-bathroom home on a 2000-square-metre estate.

The action began with a bid of $3 million and rose to $3.95 million when it was called on the market.

The buyers are a local family planning to renovate the house.

100 Oriel Road, Clayfield
The buyers of this $4.1m home plan to move in with their family. Photo: Ray White

“Buyers are no longer waiting and there’s signs of people jumping in or risking FOMO (fear of missing out),” selling agent Damon Warat said.

The price was less than its sale last year for $4.3 million.

The Ray White group also sold the home of its joint chairman Paul White in Clayfield.

It sold under the hammer for $3.425 million with four registered bidders.

The 1930s-style home called ​Arlington at 129 Adelaide St East​ was listed by Mr White and his partner Lynne Porcsin, who have owned the four-bedroom, classic single-storey home on one of Brisbane’s best streets since paying $3.025 million in 2014.

Jonathan Chancellor is editor at large at Property Observer

View Comments